What Rental Car Insurance Should I Get In Iceland?

Third-Party Liability, or TPL, is essentially insurance against third-party claims (a third party). It protects you against any harm you may do to another person, vehicle, or property while driving your rented car. It also covers your car’s passengers in the event of damage or injury.

Third-party liability insurance is a legal requirement in Iceland and is usually provided for free. Consider it a red flag if a car rental company tries to sell it to you as extra insurance at an additional fee.

Do you need extra insurance when renting a car in Iceland?

The basic CDW collision damage waiver is the recommended and required rental automobile insurance in Iceland. The gravel protection insurance is recommended but not required. The sand and ash, as well as theft protection, are all optional.

Should I get Saap insurance Iceland?

Renting a car in Iceland allows visitors to explore the island at their leisure, without being bound by a tour company’s schedule or having to share the experience with a busload of other tourists. However, renting a car in Iceland presents its own set of difficulties. The weather might be unexpected, the roads can be icy, and cars can be damaged by sand, ash, and loose stones. It’s crucial to look into the various automobile rental businesses, learn about the various insurance options, and choose the ideal vehicle for your trip.

Many vacationers make the initial error of choosing the smallest automobile at the lowest price and foregoing additional insurance. It’s seductive, because automobile rental prices remind you that you’re on a deserted island with little competition. Some tourists believe that renting a car and paying for insurance is prohibitively expensive, and that gas prices are exorbitant in comparison to their home nation. If you plan to stay in Reykjavik, a compact, economy-size alternative may be appropriate, but if you plan to travel to the countryside, there are other factors to consider.

A tiny car is often the best and cheapest option for traveling on well-paved roads, such as the Ring Road. If your trip involves a journey to the Highlands (which is only doable in the summer), however, don’t try to save money by hiring the cheapest choice. If you try to drive a tiny car in an area where a 4×4 is required, you should expect damage to the car at best, and being trapped and requiring rescue at worst. Always think ahead and be prepared. Due to river crossings and highly rugged terrain, interior roads are known as F-Roads and require a 4×4. The F-Roads are only open in June, depending on how much snow fell in the interior of the country over the year. For road openings, go to www.road.is.

So, which insurance solutions are best for you? In Iceland, car rental businesses provide comprehensive insurance for each rental, which is the most basic form of third-party insurance. Drivers can get supplemental insurance, which includes a collision damage waiver, for a fee. Finally, the Sand and Ash Protection (SAAP) insurance, which is unique to Iceland, is available. Remember the 2010 eruption of Eyjafjallajökull? Large areas of south Iceland were coated in ash and sand as a result of the eruption, which can cause substantial damage to vehicles. Car damage can range from ISK 500.000 to ISK 1.500.000, although your self-risk liability with SAAP insurance is normally limited to ISK 90.000. The specifics differ depending on the car rental company. It’s a smart idea to get SAAP insurance if your trip plans include visiting south Iceland, which contains the Golden Circle and other popular sights. Make sure you get the correct insurance for the region you’re going to.

Make sure you’re aware of the current weather and road conditions after you’ve chosen your car and insurance package. Weather forecasts may be found at www.vedur.is, and road closures and weather alerts can be found at www.road.is.

Depending on the weather and time of year, driving in Iceland can be relaxing or terrifying. Because the weather in Iceland can change fast, always check road conditions before embarking on a trip. If you are not an experienced winter driver, attending tours rather than hiring a car would be the safest alternative. Snow, rain, sleet, ice, black ice, and wind gusts can all occur during the winter, which begins in September and lasts until April. In the winter, Iceland is not the best place to learn to drive.

For those who prefer camping, campervans and RVs are popular options, but keep in mind that campsites are only available during the summer, and wild camping is prohibited. Campervans should thus only be rented during the summer months.

You can rent a car in advance or when you arrive at Keflavik International Airport, the BS bus station, or within Reykjavik once you’ve settled down. It’s best to book your rental ahead of time because some dealers sell out quickly and you’ll receive the greatest deals if you do.

Mistake #1: Completely Writing Off Renting A Car In Iceland

One of the most common blunders individuals make while planning their vacations is overlooking the possibility of hiring a car in Iceland. This is a HUGE MISTAKE because renting a car in Iceland gives you so much flexibility, and organizing an Iceland Road Trip is a fantastic way to see the country. If you’re reading this and thinking on renting a car in Iceland, we strongly advise you to reconsider!

We, on the other hand, enjoy renting a car as much as feasible! We’ve leased automobiles all over the world, from Italy to Peru to Alaska and Ireland, and we adore the flexibility they bring. We are photographers and hikers who enjoy getting deep into the countryside, which we can do by renting a car in Iceland.

Although there are some fantastic excursions available in Iceland, public transportation is not widely available. As a result, driving is a common mode of transportation in Iceland.

If you still don’t want to drive, there are day trips and multi-day tours available in Iceland. Even if you’ve never driven before, Iceland is a great place to start. Slow down. Take precautions. Take care. And you ought to be alright!

If you wish to see the Ring Road in Iceland, we strongly advise you to drive! It’s one of the most enjoyable methods to go throughout the country!

Mistake #2: Assuming An Iceland Car Rental Will Be Too Expensive

You are not alone if you are concerned that hiring a car in Iceland will be prohibitively pricey. We’ve leased automobiles all around the world, and they’re often too pricey for a simple vehicle.

We won’t lie to you: Iceland is an expensive country. However, with careful planning and budgeting, there is a car to suit every budget! On two separate journeys to Iceland, we spent roughly $1200 for a four-wheel-drive car rental for two weeks. We’ve also rented a total of 22 automobiles for half the amount or less!

This way, you can compare a variety of costs without having to visit a number of various websites.

A common blunder is assuming that hiring a car in Iceland will be too expensive. This is a major reason why people avoid booking an Iceland car rental.

Renting a car in Iceland is naturally more expensive than in many other countries, but you should be able to get a reasonable offer. For the greatest vehicle rental offers in Iceland, go no further than Keflavik Airport and Downtown Reykjavik!

When you book ahead of time, do your research, and travel during the off-season, you’ll find that car rentals in Iceland are less expensive than you might imagine!

Mistake #3: Spending Too Much Money On A GPS

You’ve undoubtedly already spent a significant amount of money on your trip, so why add to that by hiring a car in Iceland if you don’t have to? Another major blunder people make when renting a car in Iceland is paying a lot of money for a GPS and then only using it a few times.

Many tourists we’ve spoken with have done this and ended up not using the GPS at all. In fact, we did it ourselves, and the GPS sat in a box in the back seat for years because we never used it!

Instead, we propose taking use of your phone plan’s global roaming policy or purchasing a low-cost mobile hotspot. We recommend downloading Google Maps offline if you do not have an international plan.

You may still get everywhere you need to go without spending a dime this way! If you don’t want to pay for a phone plan or if it isn’t included, you can still use your phone as a GPS device.

Iceland’s phone service is excellent, and the Icelandic government has insured that it remains so in the event of an emergency. Everyone is amazed at how well their phone service works in Iceland, and we advise you to keep an open mind!

This error is based on age and will vary depending on who you are. If you aren’t into all the apps and downloading maps is a hassle for you, a classic GPS may be worth the money and you should upgrade and use it when renting a car in Iceland.

However, everyone else, especially those with T-Mobile or Sprint phone plans that include free global roaming, will be able to use their GPS as usual, which will be a huge waste of money when reserving your Iceland vehicle rental.

Mistake #4: Forgoing Insurance On Your Iceland Car Rental

Okay, we’ll be the first to admit that we’ve never had vehicle insurance in the past. This is a HUGE MISTAKE, especially when renting a car in Iceland, where the weather is unpredictable and the roads are slick.

The truth is that things happen, and sometimes car rental companies try to take advantage of you by claiming you “marked” the car when you didn’t. In any case, safeguarding yourself and your Iceland car rental is critical.

There are two major methods for accomplishing this. The first, and most popular, method is to charge the Iceland auto rental to a vacation credit card with insurance. IMPORTANT!!!!!! Please keep in mind that car insurance is not covered by many credit cards in Iceland.

These are the 5 Credit Cards We Travel With, but when renting a car in Iceland, we recommend the Chase Sapphire Reserve. If you pay for your Iceland car rental with a Chase Sapphire Reserve card, you’ll be insured for collision and theft up to $75,000 when driving in Iceland.

This means you’re covered if your windshield cracks or you get into a fender bender. All you have to do is put the car on your Chase Sapphire Reserve and deny the agency’s automobile rental insurance.

We love using a travel credit card because it has so many perks, plus you receive 3x points on travel, so putting your Iceland trip on Chase Sapphire Reserve is practically earning a free future vacation.

It’s nice to know that we won’t have to pay any international transaction fees, will have access to lounges, and will have our auto insurance paid by our credit card!

We know that we will be protected every time we rent a car in Iceland or any other nation, which is really comforting. Please keep in mind that many travel credit cards do not provide coverage in Iceland, so bear that in mind when making your Iceland car rental reservation.

We recognize that not everyone renting a car in Iceland wants to open a new credit card, and that’s just fine! There are still alternatives available to you, and we strongly advise that you pick one or the other so that you are covered in some way!

We strongly advise you to purchase at least basic automobile insurance from your Iceland car rental service. You can conduct some research while making your reservation to discover what this covers.

Keep an eye on your deductible, as it might be as much as a few thousand dollars before your insurance kicks in! Inquire about insurance alternatives, as well as what is covered and how much you must pay before insurance kicks in, before reserving your Iceland car rental. This is enormous and crucial!

We used to book our automobile insurance with Auto Europe before traveling with a credit card that covered car rental insurance. This way, you can book both your Iceland car rental and your Iceland auto insurance in one convenient location.

This simplifies the process and reduces the amount of time spent. When renting a car in Iceland, our only bit of advice is to make sure you have some type of insurance! You don’t want to be out tens of thousands of dollars in an emergency! We see that all the time in Iceland vacation Facebook groups. The visitors are out $20K because they didn’t choose insurance and the wind unintentionally pulls off the door to their rental car. Take note of this warning and make your reservations appropriately!

Mistake #5: Assuming That All Car Rentals In Iceland Will Have Automatic Transmission

This one is primarily for our American friends! Citizens of the United States of America, we sympathize with you! We’ve become accustomed to the fact that the majority of rental cars are automatic. This is not the situation in Iceland, and it is a common blunder made by tourists who rent a car there.

In fact, manual transmission cars make up the bulk of Iceland vehicle rentals. Furthermore, automatic car rentals in Iceland are more expensive and uncommon, so if you want one, we recommend making a reservation as soon as possible!

Many people, including us, are unable to drive cars with manual transmissions. Automatic gearbox automobiles in Iceland may be out of stock if you wait until the last minute, leaving you high and dry.

Attempting to learn to drive a manual transmission car while in Iceland is a TERRIBLE idea that will put you in grave danger. Weather conditions can change in an instant, making driving perilous.

DO NOT attempt to learn manual transmission if you have never done so before in order to save money on your Iceland vehicle rental. If you are unfamiliar with driving a manual car, you should avoid renting one in Iceland.

How are you going to do it? We recommend that you reserve your Iceland vehicle hire as far in advance as possible. You’ll want to be sure there are enough automatic-transmission rental automobiles in stock before your trip.

When renting a car in Iceland, make sure you select automatic or manual gearbox when making your online reservation! With only 8 days’ notice, we were able to schedule last-minute excursions to Iceland and still locate automatic rental vehicle possibilities.

To locate the greatest deal on automatic vehicles, compare prices on a variety of websites or using booking engines like Auto Europe.

Mistake #6: Thinking That Booking Your Car Rental In Iceland Instead Of Online Will Save You Money

Many individuals make the mistake of believing that renting a car in Iceland once you arrive will save them money. This isn’t the case at all!

Book and pay for your Iceland vehicle hire as soon as you arrive in the country. Renting a car from the United States or your home nation is substantially less expensive than waiting until you get in Iceland.

We believe this is a “old school” style of thinking, but it is perfectly great if you believe this way! We’re only here to inform you that things change, and waiting until the last minute to book when you arrive is no longer the best option. We’d like to offer some advice so that you’re not caught off guard when you arrive in Iceland.

Most major automobile rental companies in Iceland and Europe are now associated with large American car rental companies like Hertz, Enterprise, Sixt, and others.

As a result, going directly to an Icelandic vehicle rental service does not always imply that you will obtain a better rate. Furthermore, waiting until the last minute to rent a car in Iceland will result in limited alternatives and costs.

When seeking for the best cost on an Iceland vehicle rental, you should browse about just like you would when shopping for the best value on an airline ticket. Rates and fees for car rentals change frequently, and you want to make sure you’re receiving the best deal possible. Researching the going pricing at a range of major automobile rental companies using sites like Auto Europe is the best method to ensure you’re getting the greatest value.

After you’ve done your research and found the best deal, we recommend going straight to Auto Europe, which works as a consolidator for vehicle rentals in Iceland and around Europe.

Auto Europe, believe it or not, frequently meets or beats the greatest cost offered by any rental provider if you go direct. We prefer to arrange our car rentals in Iceland with Auto Europe because they offer the lowest prices!

Mistake #7: Booking Your Iceland Car Rental With Mileage Limits

How do we know that this is a common blunder while hiring a car in Iceland? Oh, it’s only that we’ve made this mistake before….multiple times!

There’s nothing intrinsically wrong with a mileage restriction on an Iceland car rental; the problem arises when you don’t realize it and want something different, or when you exceed it without realizing it and end up paying a lot of money.

In Iceland, mileage limits on rental cars simply indicate that you can’t drive more than that each day. So, if you’re staying for five days and your daily mileage restriction is 200 kilometers, you can’t drive more than 1000 kilometers in total without incurring a fine from your Iceland car rental service. You can now drive 10 kilometers one day and 350 kilometers the next, but you must keep within the limits given by the car rental service when you make your reservation.

It’s critical to compare Iceland car rental alternatives to determine whether or not there is a mileage limit, and to avoid booking a car that has one if you don’t want to deal with it.

If you do decide to rent a car with a mileage limit, plan out your entire Iceland road trip beforehand, then go to Google Maps to check how many miles you’ll be driving.

Some car rental firms in Iceland have minimal limits, while others have greater ones. The costs for exceeding the distance limit are pretty high, so depending on what you intend to do during your trip, it is advisable to conduct your research and go in with an open mind.

We hope that by reading this, you will be able to avoid making these blunders when renting a car in Iceland. Your vacation will be transformed if you rent a car in Iceland. You’ll have an amazing time visiting Iceland at your own leisure rather than on a tour.

If you follow these basic suggestions and avoid making some of these typical blunders, renting a car in Iceland is neither terrifying nor confusing! In the comments section below, we’ll be pleased to address any questions you may have!

Is Gravel insurance necessary in Iceland?

Because Iceland is unlike many other countries, the road and weather conditions are often more severe. If you plan to drive the ring road, Gravel Protection insurance is a must-have for your vacation to Iceland. Because the ring road is not entirely paved, you will encounter gravel roads at some time.

What are f-roads in Iceland?

F-roads are highways that lead to Iceland’s highlands. Driving on F-roads necessitates the use of a 4×4 vehicle (For the F-roads with rivers, It is required that you have a raised 4×4). It’s also a good idea to travel the F-roads in a group of at least two people in case something goes wrong.

What is self risk in car insurance?

When you self-insure, you set aside extra monies to cover any unexpected expenses or bills. If you self-insure, you run the danger of draining your resources to cover accidents, lawsuits, and bills.

Are there ash storms in Iceland?

In Iceland, sandstorms are also known as ashstorms or dust storms. Natural disasters of this nature are common along the South Coast. Volcanic eruptions have left a lot of debris in this section of Iceland. The wind is whipped up into a frenzy, and it quickly becomes a frightening storm. Sandstorms in Iceland can appear out of nowhere, causing serious damage to your rental if you’re unlucky enough to be caught in one.

So, how can you defend yourself or, better yet, how do you avoid them in the first place? Let’s take a look and see what we can find out.

Does Iceland have ash storms?

When visiting Iceland, visitors should be prepared for sand and ash storms. In truth, they’re rather widespread, and they can do serious damage to vehicles traveling through Iceland. Even if you’re driving on Route 1.

What is Scdw insurance Iceland?

SCDW (Super Collision Damage Waiver) — SCDW is included in all of our insurance products, but with various self-risks. As a result, the usual self-risk of 360.000 ISK is reduced to 150.000, 100.000, or 50.000 ISK.

Personal Accident Insurance (PAI) – We don’t take any chances when it comes to our health. All unintentional emergency and medical costs are covered.

Gravel Protection (GP) – Our roads can be fairly rough at times, so you may encounter small rocks or gravel on the outside of your car as a result of the weather. The gravel protection takes care of you if your windscreen or headlights fracture or if there are dots on the outside of your car – self-risk 0 ISK.

Tire protection (TI) – Tire protection covers all costs associated with a flat tire, an inaccurately balanced tire, and faulty valves. Damage to the rims or other damage caused by off-road driving is not covered by insurance.

Theft Protection (TP) – Covers the rented car if it is stolen. The normal self-risk ranges from 220.000 to 400.000 ISK in the event of a theft. Theft protection will take care of that for you.

Protection from sandstorms (SAAP) – No other insurance covers ash or sandstorm damage. Paint, glass, plastics, lighting, and other exterior components can cost up to 2.000.000 ISK to repair. This cost is reduced to 50.000 with our gold insurance package (lowest self-risk).

What is Super CDW insurance?

One of the most costly traps to avoid at the rental desk is personnel pushing that you buy something “excess insurance for auto hire” Also referred to as “If your rental automobile is damaged or stolen, the “super collision damage waiver” (SCDW) shields you from having to pay the initial part of any claim. The excess is normally between £500 and £1,000, although it can reach £2,500 in some cases.

You could wind up paying as much as £20 per day if you wait until you arrive at your destination to get an excess waiver. You do not, however, have to take out this cover at the rental desk, despite the hard-sell.

For example, with Icarhireinsurance, you can get a single policy for Europe for as little as £2.99 per day.

Unlike many rental desk policies, which do not cover damage to the windscreen, tyres, or undercarriage, this coverage covers the entire vehicle.

Also, be wary of companies that try to upsell you on personal accident insurance.