Insurance Information for Iceland 4x4 Car Rental


Third party liability is equivalent to the amount stipulated by Icelandic law at each time. This also applies to the amount of individual driver liability. Third-party coverage and personal accident insurance are automatically included in your rental.

Premium Insurance Package (PIP)

Premium Insurance Package (PIP) includes all optional insurances Iceland 4x4 Car Rental offers. The package includes full coverage for Collision, Gravel Protection, Theft and Sand and Ash Protection. ZERO liability and no credit card deposit requirement. 

Standard Insurance Package (SIP)

Standard Insurance Package (SIP) lowers the excess from 290.000 ISK to 50.000 ISK in case of collision, Gravel Protection is also included. Credit card deposit is also lowered from 290.000 ISK to 50.000 ISK. 

Collision Damage Waiver (CDW)

Collision Damage Waiver (CDW) insurance is included in the basic rental price - the driver liability in excess of 290.000 ISK.

Super Collision Damage Waiver (SCDW)

The renter is able to purchase Super Collision Damage Waiver (SCDW) insurance and by doing so lower the self-risk of CDW down to 50.000 ISK. The renter is always responsible for the following damages, which are not covered by CDW or SCDW insurance: e.g. negligence, driving while intoxicated, damage to tires, headlights, windscreen and the underside of the car, damage caused by loose rocks which get thrown at the car on gravel roads, damages to the engine of the car caused by water getting into the motor.

Please see full details listed in the Rental Agreement

Gravel Protection (GP)

Gravel protection (GP) covers damages to windscreen, headlights and the car when gravel or rocks get thrown at the vehicle by another car. 

The deductible is ZERO ISK.

Theft Protection (TP)

Theft protection (TP) covers theft of the rented vehicle. By choosing TP the renter is able to lower the self-risk, in case of theft, from 290.000 ISK down to no cost.

Sand and Ash Protection (SAAP)

Iceland randomly experiences high-velocity ash and sandstorms, especially in the southern and eastern parts of the country where even a short drive in such conditions can cause considerable damage. Insurance companies do not cover damage caused by ash-and sandstorms. The renter is able to purchase Sand and Ash Protection (SAAP) insurance that covers damage to paint, windows, lights, plastics, chromes and wheels of the rental cars, caused by sand, gravel, ash, pumice, or other earth materials being blown onto the vehicle. There is a ZERO deductible for sand related damages to all rental cars in our fleet.

What is not covered by any insurance

Please note that insurance does not cover damage to a car's:

  • Undercarriage
  • Wheels and rims
  • Door structure (frame, hinges, etc.) caused by wind gusts
  • Damages to the engine due to River crossing
  • Towing
  • Roof
  • Misfueling 
  • Lost key