Drive with Confidence
Iceland’s landscapes can be unpredictable—protect yourself and your rental car with our flexible insurance options.
Base insurance detail
All our cars come with mandatory insurance, which includes a Collision Damage Waiver (CDW), Theft Protection(TP) and Third Party Liability (TPL)
Standard Insurance Overview
Third-Party Liability Insurance (TPL)
Third-Party Liability Insurance (TPL) is essential coverage that protects you financially in case you cause harm to others while driving. This includes damage to other vehicles, property, or injury to other individuals. However, it does not cover any damage to your own vehicle or your personal injuries.
Example:
If you collide with another car and damage it, TPL helps cover the cost of repairs to the other vehicle.
If you injure someone in an accident, TPL will cover their medical expenses and any other costs related to their injuries.
TPL ensures that you're protected if you're deemed responsible for an accident and helps prevent you from facing significant financial liabilities.
Theft Protection (TP)
Theft Protection (TP) is a car insurance coverage that protects you if your vehicle is stolen during your rental period. While Iceland is known for its low vehicle theft rates, TP offers added peace of mind, ensuring you're not financially responsible if the worst happens.
Example:
If the rental car is stolen while you're using it, TP helps cover the cost of replacing the vehicle.
It’s important to note that TP does not cover theft if you have been negligent—such as leaving the car unlocked or leaving the keys inside. Additionally, TP does not cover personal items stolen from the vehicle.
Collision Damage Waiver (CDW)
The CDW covers the body of the vehicle and all collision damages. This insurance also covers the driver and all other passengers of the vehicle for any injuries. This includes emergency treatment, hospital stays, medical exams, and other expenses you may face. The CDW is automatically included in your rental and the liability excess amount is 399 000 ISK.
Deposit Requirement for Basic Insurance
When you opt for our Basic Insurance package, a deposit of 399,000 ISK will be required upon your arrival. This deposit serves as a security measure and will be held to cover any potential damage or additional charges during the rental period.
The deposit will be refunded upon return of the vehicle in good condition, without any claims or damages. Please note that the deposit amount is a standard procedure to ensure that any costs related to vehicle damage, theft, or other issues can be addressed.
Rest assured, this deposit is fully refundable provided the vehicle is returned without any problems.
gold insurance
Silver Insurance offers enhanced coverage compared to the Basic Insurance, as it includes Gravel Protection (GP) and the Super Collision Damage Waiver (SCDW) in addition to the protections already provided by Basic Insurance.
- Gravel Protection (GP): This covers damage caused by gravel or small rocks, typically when driving on gravel roads. It helps cover repairs for chips or scratches to the vehicle caused by gravel.
Liability for Gravel Protection: 45,000 ISK in case of damage due to gravel. - Super Collision Damage Waiver (SCDW): This upgraded coverage reduces your excess (deductible) in the event of a collision. It provides more extensive protection for the vehicle’s bodywork and lower liability if any damage occurs.
Liability for Collision: 170,000 ISK in the event of a collision.
Deposit Requirement for Silver Insurance
Upon arrival, a deposit of 120,000 ISK is required for those who choose Silver Insurance. This deposit acts as a security measure for any potential damage, theft, or other charges incurred during the rental period. The deposit is refundable if the vehicle is returned in good condition without any claims.
platinum insurance
Platinum Insurance offers the most comprehensive coverage, combining all the benefits of Silver Insurance with added protections for Sand and Ash Protection (SAAP) and Tire Protection (TIP) . Additionally, with Platinum Insurance, you benefit from no deposit and no liability in the event of damage.
What’s Included in Platinum Insurance?
- All Benefits of Silver Insurance: This includes Gravel Protection (GP) and Super Collision Damage Waiver (SCDW), which cover damage from gravel roads and collisions, respectively.
- Sand and Ash Protection (SAAP) : This coverage protects the vehicle from damage caused by sandstorms or ash, which can be a concern in certain areas, especially in regions with volcanic activity or strong winds.
- Tire Protection (TIP): Tire Protection covers damage to the tires of the vehicle, such as punctures or blowouts. This is particularly useful in areas where driving conditions can cause more wear and tear on the tires.
No Deposit and No Liability
- No Deposit: Unlike the other insurance packages, with Platinum Insurance, you are not required to pay a deposit upon arrival.
- No Liability: With Platinum Insurance, there is no excess (deductible) or liability for any damage or issues, meaning you're fully covered without needing to pay out-of-pocket in case of an incident.
* If you have credit card insurance and would like to decline our coverage, please reach out to us via email at
info@autocar.is, and we’ll be happy to assist you
Every rental at Auto Car Rental comes with Third-Party Liability Insurance (TPL) at no additional cost, ensuring you meet Iceland’s legal driving requirements while enjoying peace of mind on the road.
Standard Insurance
(Included)
What’s covered?
✔
Damage to third-party vehicles and property
– If you accidentally damage another car or object, TPL covers the repair costs.
✔
Injury to third parties
– Covers medical expenses or liability if another person is injured in an accident.
✔
Legally required coverage
– Fully compliant with
Icelandic law
for rental vehicles.
What’s Not Covered?
❌
Damage to
your rental car
(you’ll need additional coverage like
CDW or Super CDW
for that).
❌
Theft, vandalism, or personal belongings inside the vehicle.
❌
Damage caused by off-road driving, river crossings, or negligence.
Additional Add - On Coverage Plans:
ISK 2,500–3,500 per day
Reduces your deductible to ISK 250,000 (~$1,800) and covers accidental damage to your rental car.
Collision Damage Waiver
What’s covered?
✔ Collision-related damage to the rental car
✔ Theft or vandalism affecting exterior parts
What’s Not Covered?
❌
Gravel damage, sand/ash damage (Get GP or SAAP)
❌ Off-road driving, river crossings, or reckless driving
ISK 2,500–3,500 per day
Reduces your deductible to ISK 250,000 (~$1,800) and covers accidental damage to your rental car.
Super Collision Damage Waiver (SCDW)
What’s covered?
✔ Collision-related damage to the rental car
✔ Theft or vandalism affecting exterior parts
What’s Not Covered?
❌
Gravel damage, sand/ash damage (Get GP or SAAP)
❌ Off-road driving, river crossings, or reckless driving
ISK 2,500–3,500 per day
Reduces your deductible to ISK 250,000 (~$1,800) and covers accidental damage to your rental car.
Gravel Protection (GP)
What’s covered?
✔ Collision-related damage to the rental car
✔ Theft or vandalism affecting exterior parts
What’s Not Covered?
❌
Gravel damage, sand/ash damage (Get GP or SAAP)
❌ Off-road driving, river crossings, or reckless driving
ISK 2,500–3,500 per day
Reduces your deductible to ISK 250,000 (~$1,800) and covers accidental damage to your rental car.
Sand & Ash Protection (SAAP)
What’s covered?
✔ Collision-related damage to the rental car
✔ Theft or vandalism affecting exterior parts
What’s Not Covered?
❌
Gravel damage, sand/ash damage (Get GP or SAAP)
❌ Off-road driving, river crossings, or reckless driving
