Insurances

Choosing the right insurance for your car rental in Iceland is essential. 

In general, we highly recommend you to get extended coverage to reduce your self excess. Iceland is a beautiful country that has extreme weather conditions and gravel roads that can cause damage to your rental car. Insurances save your back in case of damage. Without it, you would have to pay for this damage out of your own pocket.

You can find below the insurances included in your rentals with Lava Car Rental and the optional insurances you can add to your rental. 

Insurances included in Lava Car Rental

Third-Party Liability Insurance

Third-party liability is equivalent to the amount stipulated by Icelandic law at each time. This also applies to the amount of individual driver liability. Third-party coverage and personal accident insurance are automatically included in your rental and in the self-risk liability amount mentioned here below. If for some reason, the renter causes damages to a third party vehicle, without causing damages to the rented vehicle, the third party liability is a total of 35.000 ISK

Collision Damage Waiver (CDW)

Collision Damage Waiver covers rental car damage in case of collision. Self excess is at 360 000 ISK. 

Damages not covered by CDW:

  • Negligence
  • Driving while intoxicated
  • Damage to tires, headlights, wind-screen and undercarriage
  • Damages caused by nature wind
  • Damages caused by nature (sand and ash storms)
  • Damages caused by driving into water

Theft Protection (TP)

Theft protection covers the vehicle for theft. No self excess. 
Please note that the insurance does not cover items stolen within the vehicle.

Optional insurances 

Our best deals

We offer several packs that will make you save money compared to individual insurances booked separately. 

Premium Insurance package

The Premium Insurance package includes all the insurances below with 90 000 ISK self excess. It includes:

  • CDW: Collision Damage Waiver
  • SCDW: Super Collision Damage Waiver
  • GP: Gravel Protection
  • WP: Windscreen Protection
  • SAAP: Sand and Ash Protection
  • TP: Theft Protection 
  • TIP: Tire Protection 

Platinum Insurance package

The Platinum Insurance Package includes all the insurances below with no self excess. It includes:

  • CDW: Collision Damage Waiver
  • SCDW: Super Collision Damage Waiver
  • GP: Gravel Protection
  • WP: Windscreen Protection
  • SAAP: Sand and Ash Protection
  • TP: Theft Protection 
  • TIP: Tire Protection 

Individual insurances

If you prefer choosing exactly what you need, please read the following. 

Super collision damage waiver (SCDW)

Super Collision Damage Waiver insurance (SCDW) covers the vehicle in the same way the CDW does but lowers the self-risk from 360 000 ISK to ISK 90 000 ISK.

Damages not covered by SCDW:

  • Negligence
  • Driving while intoxicated
  • Damage to tires, headlights, wind-screen and undercarriage
  • Damages caused by nature wind
  • Damages caused by nature (sand and ash storms)
  • Damages caused by driving into water

Windscreen (WP)

Windscreen Protection (WP) covers the vehicle against damages to the windscreen. Self excess for broken windscreen reduced to 20 000 ISK with the subscription to WP insurance.

Gravel Protection (GP)

Gravel Protection (GP) covers the vehicle against damages to the bonnet, front fender, and lights caused by passing vehicles. Self excess is 90 000 ISK.

Sand and ash protection (SAAP)

Sand And Ash Protection (SAAP) covers the vehicle for damages caused by volcanic ash and sandstorms. Self excess for SAAP is 90 000 ISK if purchased with SCDW but 360 000 ISK if only purchased with CDW.

Tire protection (TIP)

Tire Protection (TIP) covers the vehicle against having a flat tire. No self excess.

Other useful information about insurances

If you have insurance through your credit card and wish to decline our insurances. Please contact us by email at info@lavacarrental.is and we will happily assist you. Just make sure you will be well covered. 

In Iceland in case of damage, you will first pay the car rental for the damage and then get reimbursed through your insurance provider. 

You can book your insurance during the booking process, you can upgrade your insurance by sending us an email or adding some insurance when you pick up the car at our office. 

Rent a Car with Lava