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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 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 confusions about the insurances and coverage we at Northern Lights Car Rental have to offer. 

Damages and incidents is 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 Liablity (TP) and Collision Damage Waiver (CDW) included in the price. CDW covers the bodywork of the vehicle and incase of damage the self risk or maximum amount to pay is 350.000 ISK. That means that incase of unforseen damage you will not pay more then 350.000 ISK, and if the damage cost less then this amount to be repaired we only charge for that amount. 

There are damages types that 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 undercarrage 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 insurances through 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 to take 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. 


(Click here for Terms & Conditions)


Icerental 4x4 OUR INSURANCE  Super Collision Damage Waiver (SCDW): Price per day 2000 ISK (Aprox 15 EUR)

All our cars come with a standard insurance called a Collision Damage Waiver which simply means that the maximum amount you would ever pay for damages if an accident were to occur would be 350.000 ISK. However with the addition of the Super Collision Damage Waiver that amount is reduced to only 100.000 ISK. This means that incase of unforseen damage like dents and scratches the maximum amount to pay would be 100.000 ISK, if it will cost less to fix the damage then the excess we only charge for that amount. 

Covers collision damage up to 100,000 ISK. (Aprox 730 EUR, 800 USD)

Icerental 4x4 OUR INSURANCE  Gravel Protection (GP): Price per day 1200 ISK (Aprox 9 EUR)

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 the 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. 

This protection includes damage to the front windscreen, headlights and the front of the car when gravel or rocks get thrown on the vehicle by another car no self risk.

Covers gravel damage up to 0.

Icerental 4x4 OUR INSURANCE  Sand and Ash Protection (SAAP): Price per day 1500 ISK (Aprox 15 EUR)

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 100.000 ISK

Covers Sand and Ash damage up to 100,000 ISK. (Aprox 730 EUR, 800 USD)

Icerental 4x4 OUR INSURANCE  Theft Protection (TP): Price per day 690 ISK (Aprox 5 EUR)

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

Covers Theft up to 100,000 ISK. (Aprox 730 EUR, 800 USD)

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.

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