Car Hire Knowhow

How to insure your rental car in Iceland

How to insure your rental car in Iceland

Basic hire car protection 

When you hire any car in Europe, you get three types of cover included in your rental price: 

1) Collision Damage Waiver 

2) Theft Protection

3) Third-party Liability 

These three don't protect against the unique damage risks in Iceland, so you can choose to buy additional types of insurance on top. 

Insurance options in Iceland 

Iceland has unique weather and driving conditions. Cars can get damaged in ways that normal rental insurance doesn't cover. The south shore of the island is particularly prone to severe winds that can whip up damaging gravel, ash and sand. 

When you pick up your car in Iceland, the counter staff will offer you optional Sand and Ash Damage Insurance and Gravel Damage Insurance. 

Sand and Ash Damage Insurance 

As you'd expect, this covers you against damage caused by sand and volcanic ash, which are common if you're driving on Iceland's south coast. 

This insurance usually costs around 7€ to 25€ per day, or £6 to £22.

Gravel Damage Insurance 

This covers you against damage to the car's body and windscreen from stones and gravel. 

It normally costs between 9€ and 20€ per day, or between £8 and £17, depending on which company you rent with.

With some companies, this kind of insurance only covers damage caused when gravel is thrown up by another vehicle's wheels. To find out more, check your terms and conditions. 

How to buy sand, ash or gravel insurance 

You can buy insurance for sand, ash and gravel damage when you book the car, through a separate insurance provider online or at the rental counter when you pick up your hire car. 

If you buy the insurance at the counter, you are likely to pay in the local currency, Icelandic Krona (ISK). To make things easier for international customers, some rental companies charge in Euros.

What to do if your car gets damaged in Iceland 

As soon as you spot any damage, get in touch with the rental company. They'll let you know what you need to do. They can also arrange roadside assistance or a replacement car. 

If you've bought the relevant insurance from the car hire company, you probably won't have to pay anything. If you've bought insurance from a third party, you'll pay the rental company for the repairs or replacement car first. You can then claim this money back from your insurer.

Compare prices for sand, ash and gravel damage insurance 

Here's a summary of some car rental companies in Iceland and how much they usually charge for these additional insurance products. These prices are only approximate. Check with your rental company for accurate prices and the specifics of the cover.  

Here’s a summary of some car rental companies in Iceland and how much they usually charge for these additional insurance products. These prices are only approximate. Check with your rental company for accurate prices and the specifics of the cover.

Rental company

Type of insurance

Price per day

in ISK

in £ and Euro

Europcar, Alamo and Enterprise

Sand & ash

1,500 ISK for small cars

£10 or 12€ for small cars

2,000 ISK for bigger cars such as estates, SUVs, etc.

£14 or 16€ for bigger cars such as estates, SUVs, etc.

Gravel protection

Not sold separately

Not sold separately

Premium package: includes sand, ash and gravel protection and reduces your damage and theft excess to zero

3,500 ISK for all cars

£24 or 28€ for all cars

Hertz, Dollar and Thrifty

Sand, ash & gravel

2,900 ISK

£20 or 23€

Avis and Budget

Sand, ash & gravel

1,900 ISK for small cars

£13 or 15€ for small cars

2,500 ISK for bigger cars such as estates, SUVs, etc.

£17 or 20€ for bigger cars such as estates, SUVs, etc.

Sixt

Gravel protection

1,150 ISK

£8 or 9€

Sand & ash

1,300 ISK for small cars

£9 or 10€ for small cars

1,600 ISK for bigger cars such as estates, SUVs, etc.

£11 or 13€ for bigger cars such as estates, SUVs, etc.

Procar

Gravel protection

990 ISK

£7 or 8€

Sand & ash

1,890 ISK

£13 or 15€

Insurance package: includes sand, ash and gravel protection and reduces your damage and theft excess to zero

3,590 ISK

£25 or 28€

Orange car rental

Sand & ash

1,900 ISK

£13 or 15€

Gravel Protection

900 ISK

£6 or 7€

Gold insurance: includes sand, ash and gravel protection and reduces your damage and theft excess

4,400 ISK

£30 or 35€

Greenmotion

Gravel Protection

1,300 ISK

£9 or 10€

Sand & ash

1,300 ISK

£9 or 10€

Disclaimer: Sample prices checked in April 2018. Check each rental car’s specific Ts & Cs for accurate and up-to-date prices. 


To compare prices and book a rental car in Iceland see, Hiring a car in Iceland.

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