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Insurance can ease your mind when renting a car in Iceland, but there are so many different kinds. So which one do you need? Here is the list of our types of Insurance Coverage and what adventurers they are best for. Each plan has different insurance perks and you can discuss them all with our Rental Car Specialists.

First, you should know that there are three tiers of insurance that you can purchase. Plus+, Premium, and Premium Plus+. Premium Plus+ is the best option for those hitting the open road and traveling down F-Roads into Iceland’s unknown lands. Premium is another excellent option for those arriving later in the day and still seeking good coverage. Plus+ has a variety of perks too, and is wonderful for those staying around Reykjavik!

Excess Liability Insurance

Excess insurance covers claims that exceed the limits of a primary insurance policy. Excess Liability is included in each plan but with different circumstances. For Plus+ it would be 875€, Premium is 0€ and Premium Plus+ is 0€.

Collision Damage Waiver

The Collision Damage Waiver will cover collision damages that occur to the body of the vehicle and injuries of the driver and passengers. It covers a majority of emergencies as well as hospital stays and even medical checkups. While many of us like to think of a situation like this cannot happen, it can. This is why SCDW is included in all of our Insurance plans with Go Car Rental, just another perk of renting with us!

Theft Protection

Iceland is one of the safest countries in the world but that doesn’t mean you should skip out on theft protection. Theft protection, also known as TP, covers theft of the rented vehicle. Fortunately, this is included in all of our insurance plans when renting cars with Go Car Rental, and there is a 0 ISK deductible too!

Gravel Protection

Gravel Protection is an insurance that covers damages from gravel to your rental car. This can include the body of the car, the headlights, and even the front windshield. Gravel Protection can be an important add-on when driving in Iceland. The roads here have a layer of asphalt that is rougher than normal roads. The country does this to provide a steadier grip on the roads when winter hits. The gravel rock can help prevent the roads from turning into a sheet of ice. This is why paved roads tend to be more slippery and prone to car accidents when covered in snow and ice.

Luckily we include Gravel Protection in all of our insurance plans so you can stress less and drive more.

Sand & Ash Protection

SAAP is Sand and Ash Protection, and it covers just that. You need Sand and Ash protection, as these can cause a major mess to a vehicle, sometimes requiring a whole new paint job. a major mess to a vehicle, sometimes requiring a whole new paint job. At this rate, getting a new car can sometimes be cheaper than paying to fix it. Iceland is known for its crazy weather which is why adding on SAAP is so important.

It is recommended any time of the year but especially when the snow begins to melt, which causes the sand underneath to go from muddy to dry and loose. SAAP is included in our Premium Plus+ plan!


Your insurance is valid when driving F-Roads, except for crossing rivers. There is no insurance that covers this. You also must have the proper vehicle to drive on F-Roads, which is a 4WD or 4X4 vehicle.

A 2wd rental car is not allowed to go on F-roads and therefore, you are not insured while driving on F-roads and you will be liable for fines and costs of repairing any damage to the chassis of the rental car.

Tire Insurance

Tire Protection will only cover the damage to the tire or the cost of a tire repair. It will not cover the service to change the tire or a tow cost. If a flat tire does occur, the renter is responsible for getting the vehicle to the tire shop to have the tire fixed. Tire Insurance is included in our Premium Plus+ Insurance Plan.

Go Car Rental does provide complimentary studded winter tires during winter, which runs from November to April.

Towing Cost

Towing costs can be expensive, but we get it, things happen! Your deductible for towing will depend on which Insurance plan you are on. For Plus+ your towing cost deductible would be 3.000 €, Premium is 2.000 € and Premium Plus is 0€.


If you are looking for WIFI and great coverage you should consider the Premium Plus + insurance! Free Car WIFI is included in your insurance cost, which means you can google food or accommodations nearby. Enjoy less stress with the convenience of this perk. If you are purchasing a different plan, you can add on Car Wifi for an additional cost too!

Extra Driver

Being the only one driving on a road trip on Ring Road can be a bit bothersome. The best way to enjoy the views, while keeping your energy high, is to switch out drivers throughout your trip. You can do this by adding an extra driver when booking a rental car. This does come at an additional cost unless you have the Premium Plus + insurance plan, which includes one free extra driver.

After-Hours Pickup

Some flights arrive late or really early in the morning. The last thing you want to do is hang out at the airport when you could be getting your road trip underway. That is why we offer After Hours Pickup for two of our insurance plans, Premium and Premium Plus+. If you plan on picking up outside of our business hours, these insurance plans would be ideal for you!

Not Covered By Insurance

Here are some examples of circumstances that are not covered by insurance.

1 Intentional damage or damage due to gross negligence on the driver‘s part. You need to treat your rental car as if it was your own to avoid any extra costs.

2 Damage resulting from the driver being under the influence of alcohol, stimulants, or sedatives or in any other way incapable of driving the vehicle safely. It is pretty simple, drive sober!

3 Damage due to race or test driving. Make sure to be conscious of Iceland’s speed limits. Save your need for speed for hiking through Iceland's mountains instead.

4 Damage due to war, revolution, civil unrest, or riots. This is unlikely in Iceland, thanks to it being one of the most peaceful countries in the world.

5 Damage done by animals. Iceland has a lot of free-roaming animals, such as sheep. Always be aware and alert when driving, especially through the Icelandic countryside.

6 Holes burned into seats, carpets, or mats. Don’t be that traveler!

7 Damage affecting only wheels, suspension, batteries, glass (other than windows), radios, or loss by theft of parts of the vehicle and damage resulting from this.

8 Damage caused by driving on rough roads to the vehicles transmission, drive, and other parts that are in or attached to the chassis; damage to the chassis resulting from the vehicle scraping bottom on rough roads as a result of ridges being left by road graders; stones lodged in the road surface or on the shoulder of the road. The same applies to damage occurring when stones are thrown up, striking the vehicle‘s underside during driving. This could include F-Roads, so always research the roads before driving on them.

9 Damage resulting from driving in places where vehicle traffic is banned, such as paths, tracks, banks of snow, ice, unbridged rivers or streams, beaches, places only accessible at low tide, or other trackless areas. This could also result in a big ticket, so read the road signs.

10 If the lessee is spotted and proven to be driving off-road, driving on F-roads with a non-4x4 vehicle, driving on closed roads, or any roads not suitable for the vehicle currently driving, the lessee accepts to pay an additional fine of 250€.

11 If the vehicle is transported by sea, no compensation will be paid for damage caused by sea spray/seawater. This also includes any water damage to the vehicle

12 Damage to the door, fender, hinges, or any other part damaged due to the wind catching the doors. Just another reason to check Iceland’s weather before hitting the open road.

13 Damages to passenger cars and/or 2WD vehicles caused by driving on roads marked with an F on public maps as well as driving on Kjölur (road 35), Kaldidalur (road 550), and Dettifoss road east side (road 864). These are dangerous and rough roads, so always ask our rental car specialist before taking on certain F-Roads.

14 Damage to the rims of the rental vehicle.