Renting a car in Iceland | Insurance

When renting a car in Iceland insurance is essential for your safety and peace of mind. The level of protection depends on your needs. We at Dollar Iceland Rent A Car offer different level of protection as we want to be flexible when it comes to meeting your needs.

Basic insurance

Basic Collision Damage Waiver (CDW) is included in the rates when you rent a car from Dollar Rent A Car in Iceland. CDW is a Motor hull insurance that covers, for example, the damage, destruction and loss of the rental car and limits the lessee's/driver's liability to a certain amount. For passenger cars the liability amount is 1600 EUR and for 4x4/AWD vehicles, 7-seaters and 9 seaters it is 2300 EUR. Among things the CDW does not cover personal belongings lost, damaged or stolen. Please consult the Terms and Condition for a full list of what is covered with the CDW and what is not.
Theft Protection (TP) is included in our basic insurance, Collision Damage Waiver (CDW).

Additional rent a car insurance

Windshield protection is to cover your front windshield from damage such as chips and cracks caused by gravel and stones. Windshields are very expensive in Iceland. It is also the most common damage that occurs to renters.
The deductible is 120 euros for 2x4 passanger cars and 170 euros for AWD/4x4 vehicles and 7 seats passenger vans and larger
Super Collision Damage Waiver (SCDW) lowers the lessee’s/driver’s liability compared to the CDW. This is an optional upgrade to the CDW.
The deductible is 400 euros for 2x4 passanger cars and 1100 euros for AWD/4x4 vehicles and 7 seats passenger vans and larger
Grand Collision Damage Waiver (Grand CDW) includes Super Collision Damage Waiver (Super CDW) and essentially adds gravel road protection to your level of protection. It compensates for damage to the windshield, front lights and paint of the rent a car caused by gravel or stones that hit the rental car from a passing vehice on a gravel road. Please note that even though these incidents are linked to driving on gravel roads they are certainly not limited to driving on gravel roads. For example, windshield damage is one of the most common damage to rental cars in Iceland and it can occur on paved as well as gravel roads, in cities as well as in the country side.

The Grand CDW also covers damages to the chassis of the hire car, such as to the exhaust system, gear-box and engine if the vehicle scrapes the surface of a regular road or on F-marked roads for those rental cars which are fit for such roads. This is an optional upgrade to the SCDW.
The deductible is 170 euros for 2x4 passanger cars and 240 euros for AWD/4x4 vehicles and 7 seats passenger vans and larger
Sand and Ash Damage Waiver (SAAP)
Iceland is known for strong winds and often barren landscape. In combination this is cause of frequent sandstorms which blow up sand or other fine material from the earth which can cause serious damage to the painting and other parts of your rent a car. This can happen anywhere in Iceland where there is not a lot of vegetation in dry and windy situations. Southern coast along route 1 is however an area where sandstorms are particularly frequent.
The deductible is 700 euros for 2x4 passanger cars and 1100 euros for AWD/4x4 vehicles and 7 seats passenger vans and larger
Premium Collision Damage Waiver (PCDW)
For hassle free delivery and return and a complete peace of mind we offer the most comprehensive collision damage waiver available to you when you rent a car in Iceland. The premium has no deductible

River Ford Crossing (RFC) is a a specific water- damage insurance coverage, which includes negotiating AWD/4x4 vehicles across fords at speed less than 4 kilometres per hour. Own risk in each case of damage shall be specified in the rental agreement.

The deductible is 3000 EUR.

You can either book the insurance coverage when booking online or do it at the counter when you pick up the car. If you book it online you can easily change your insurance at the counter.