Iceland Car Rental Insurance
Iceland's gravel roads, strong winds, sand, ash and quickly changing weather can create driving risks that are uncommon elsewhere. Ring Rentals keeps insurance clear so you can choose the protection that suits your route and understand your financial responsibility before pickup.
Insurance included with every rental
Every Ring Rentals vehicle includes the mandatory and basic protections below in the rental price.
Third Party Liability (TPL)
Required by Icelandic law. It covers injury or damage caused to third parties, subject to the rental agreement.
Collision Damage Waiver (CDW)
Covers damage to the vehicle's bodywork. The standard excess is 350,000 ISK for cars and 4x4s, and 480,000 ISK for motorhomes. You remain responsible for covered damage up to the applicable excess.
Theft Protection (TP)
Covers theft of the rental vehicle with a 0 ISK excess. Personal belongings left in the vehicle are not covered, and protection is void in cases of gross negligence.
Protection packages
Protection packages reduce or remove your excess and add coverage for risks that are especially relevant when driving in Iceland.
Basic Protection
- Included in the rental price
- Third Party Liability
- Collision Damage Waiver
- Theft Protection
- 350,000 ISK excess for cars and 4x4s
- 480,000 ISK excess for motorhomes
Premium Protection
- Includes all Basic Protection benefits
- Super Collision Damage Waiver
- Gravel Protection
- Sand and Ash Protection
- No security deposit
- 110,000 ISK excess for cars and 4x4s
- 150,000 ISK excess for motorhomes
Platinum Protection
- Includes all Premium Protection benefits
- 0 ISK excess for covered damage
- Tire Protection
- Protection for damage caused by animals
- No security deposit
- Debit card rental permitted
What the additional protections cover
Super Collision Damage Waiver
Reduces the standard CDW excess if the rental vehicle's bodywork is damaged in a collision.
Gravel Protection
Covers damage caused by loose stones striking the front windscreen, headlights and front of the vehicle. Gravel damage can occur on both paved and unpaved roads.
Sand and Ash Protection
Covers eligible damage to the vehicle's exterior caused by sand or ash being blown against it. This risk is particularly relevant on the South Coast and during strong winds.
Tire Protection
Included with Platinum Protection and covers eligible tire and wheel damage with a 0 ISK excess. The renter remains responsible for changing a flat tire or arranging transport to a tire shop when necessary.
Damage and costs not covered
No insurance package covers every situation. Important exclusions include:
- Driving while intoxicated or under the influence
- Damage to the chassis or undercarriage
- Water damage, including damage from river crossings
- Damage to doors, hinges or frames caused by wind gusts
- Motorhome damage caused while driving in winds of 15 m/sec (54 km/h or 33 mph) or more
- Towing and recovery costs, including becoming stuck in snow, mud or sand
- Damage caused by negligence, prohibited driving or a breach of the rental agreement
Frequently asked questions
Do I need additional protection in Iceland?
Basic insurance is included, but it carries a substantial excess and does not include gravel or sand and ash protection. Additional protection can reduce your financial exposure on Iceland's gravel roads and in unpredictable weather.
What is the difference between Premium and Platinum?
Premium reduces the excess and adds Super Collision Damage Waiver, Gravel Protection, and Sand and Ash Protection. Platinum reduces the excess for covered damage to 0 ISK and also adds tire and animal-damage protection.
Can I use credit card insurance?
You may rely on separate credit card coverage, but you will normally need to pay Ring Rentals first and request reimbursement from your provider. Check the provider's exclusions carefully, as Iceland-specific damage may not be covered.
Which package offers the lowest risk?
Platinum Protection offers the most complete package and a 0 ISK excess for covered damage. Your choice should still reflect your route, vehicle and comfort with financial risk.