Insurances

We offer a wide range of Iceland car rental insurance products for people who want to be on the safe side.

Our goal at Northern Lights Car Rental is that our customers can travel around Iceland while enjoying the beautiful views Iceland has to offer. This is why we have some great additional coverage to offer so that our customers can travel around Iceland hassle-free. It can often be confusing while choosing what coverage is best suitable for each trip. So we do our best to keep it easy and simple. By doing so we have listed all our insurances, what is included and what is not to make sure that there will be no surprises during the holiday. 

If you have insurances through your insurance company or credit card and need to decline our insurances, just send us a line at info@nlcarrental.is and let out customer service team know and they will happily take care of it for you. Our customer service team will also be happy to help if there are any confusion about the insurances and coverage we at Northern Lights Car Rental have to offer. 

Damages and incidents are something that nobody can expect, which is why it can be important to have the correct coverage for your trip to Iceland. 

All of our car rental vehicles come with Third-Party Liability (TPL), Collision Damage Waiver (CDW) and Theft Protection(TP) included in the price. CDW covers the bodywork of the vehicle and in case of damage, the self-risk or maximum amount to pay is 350.000 ISK. That means that in case of unforeseen damage you will not pay more than 350.000 ISK, and if the damage cost less than this amount to be repaired we only charge for that amount. 

Some damages types are not included in the CDW or SCDW. 

• Driving while intoxicated
• Damages caused by animals (horse bite for example)
• Damages to the chassis of the vehicle or undercarriage of the vehicle. 
• Damages to tires or wheels
• Water damages to the vehicle
• Damages to the door structure (hinges, frame, etc.) caused by wind gusts. 

If you have insurance through a third party insurance company or credit card, the renter has to pay Northern Lights Car Rental for the damage and then make a claim to their insurance company. We will be glad to help with this claim by providing all documents needed. 

We strongly recommend taking additional coverage to reduce the risk and enjoy all of what Iceland has to offer without worry. It needs to be taken into consideration that Iceland is special for the extreme weather conditions and gravel roads. 

ABOUT INSURANCES

 Super Collision Damage Waiver (SCDW)

CDW insurance is included in the price; the driver liability is in excess of 350.000 ISK For all cars. The Renter can purchase SCDW insurance, and by doing so, he lowers the self-risk of CDW down to 150.000 ISK. If there is any dent/scratch on the vehicle, the maximum amount to pay is 150.000 ISK, depending on the vehicle model. If it is under the excess, we only charge for the amount to repair the vehicle. 

Excess with Silver Protection is 150.000 ISK 

Excess with Premium Protection is 110.000 ISK 

Excess with Platinum Protection is 0.

 Gravel Protection (GP)

Since Iceland is full of Gravel roads the Gravel Protection is an important insurance to have. A crack or a chip on the windscreen of the car is the most common damage to our cars. With Gravel Protection, the general front end of the car is fully covered from all damages from stones that may shoot towards your car from the vehicle in front of you. 

Excess with Silver Protection is 50.000 ISK 

Excess with Premium Protection is 25.000 ISK

Excess with Platinum Protection is 0.

 Sand and Ash Protection (SAAP)

No regular insurance cover damage from ash or sandstorm. The damage to paint, glass and plastic parts can be very expensive to the lessee, up to 6.000 Euro. The lessee can purchase SAAP to lower self-risk down from full liability to 0

Excess with Premium Protection is 90.000 ISK 

Excess with Platinum Protection is 0.

 Theft Protection (TP)

Iceland is known for being one of the most peaceful countries in the world however dishonest people will always exist, so if your car were to be stolen you would never pay more than 100.000 ISK. for the loss of our vehicle. Please note that this does not insure missing items or other things inside the vehicle.

This protection ensures the lessee from liability should the vehicle be stolen.

Self Risk for Theft Protection is 0

It is noted that in case of gross negligence on behalf of the lessee that leads to theft of the vehicle, the TP is void

It is noted that in case of gross negligence on behalf of the lessee that leads to theft of the vehicle, the TP is void

All rentals are subject to the full rental agreement terms and conditions at the time of rental.