Insurance Guide
Which insurances you need for your Iceland trip
| Insurance | What it covers | Cost | Importance |
|---|---|---|---|
| Car Rental Collision (CDW) | Damage to rental car in traffic accident | 4,000–8,000 ISK/day | Recommended |
| Gravel Protection (GP) | Windshield & paint damage from road gravel | 2,000–4,000 ISK/day | Important |
| Sand & Ash Protection (SAAP) | Damage from sandstorms & volcanic ash | 2,000–5,000 ISK/day | Important in summer |
| Travel Insurance | Cancellation, loss, hospital | 5,000–15,000 ISK | Recommended |
| Health Insurance | Medical costs, medical evacuation | Depends on home country | Important |
| Adventure Activity Cover | Glacier hike, horse riding, kayak | Usually included | Check terms |
Important tips
- Check if your credit card includes rental car insurance — many do.
- Rental companies may hold 500,000–1,500,000 ISK liability if you decline insurance.
- EHIC card (EEA citizens) covers emergency care but not evacuation home.
- Sandstorm and volcanic ash are common causes of rental car damage.