Do You Need Camper Rental Insurance in Iceland? How to Protect Your Adventure

Taking a road trip in Iceland truly is an adventure of a lifetime, allowing you to explore breathtaking, otherworldly landscapes like glacier lagoons, volcanic craters and black sand beaches. To see much of Iceland’s incredible scenery, you’ll need to travel across the country’s unique terrain, including lava fields, glacial streams and mountainous, unpaved gravel roads. So, how can you make sure your trip is as comfortable, smooth and enjoyable as possible? 

That’s where rental car and camper insurance in Iceland comes in. Organizing and planning are vital in Iceland, especially when it comes to road safety. We’ll guide you through all you need to know about camper insurance in Iceland, so you can decide what you need for your trip and get fully prepared to enjoy your Icelandic adventure!

Is Camper Rental Insurance in Iceland Essential?

If you’re wondering whether camper rental insurance is needed in Iceland, the short answer is yes. That’s because Iceland’s roads are uniquely challenging, with environmental conditions you’re unlikely to encounter in most other countries across the world.

Understanding Iceland’s Unique Driving Conditions

Many of the roads in Iceland are unpaved, gravel roads, which are very narrow and bumpy with lots of loose stones, ash and sand, and sometimes river crossings too. Even the smallest pebbles can cause significant damage, especially when they get projected from the wheels of another vehicle. They usually hit the front windshield, creating a crack, or hit the chassis, creating a dent.

Iceland’s weather is also famously changeable and harsh weather conditions during the colder months often cause certain roads to close, as they’re too hazardous to drive on in winter. All of these factors combined mean that it’s best to be fully covered during your camper road trip in Iceland.

Changing the windscreen can be quite expensive, as you can imagine. It’s very common for travelers to think that the car rental company is trying to sell you extra protection that isn’t necessary, but that’s definitely not the case in Iceland. Actually, if your rental agent does not offer any other insurance beyond the basics, that’s definitely a red flag. When traveling on this island, good rental insurance is a must!

Road Hazards in Iceland You Might Not Expect

Some of the most common road hazards and issues to be aware of in Iceland include:

• Damage from loose gravel on unpaved roads

• Wind damage, especially to doors

• Wildlife crossing unexpectedly

• Sand and ash storms, particularly in South Iceland

• Limited access to help in remote areas

So, let’s explore how camper rental insurance in Iceland can help to mitigate some of these risks.

Your Iceland Camper Rental Insurance Options

When choosing your camper rental insurance package in Iceland, you’ll likely come across so many options that it’s hard to know where to start. But, don’t worry! Here, we’ll break down all the key info you need to know about each type of camper rental insurance in Iceland, so you can choose the right package for your trip.

Basic Collision Coverage: What’s CDW and SCDW?

Collision Damage Waiver (CDW) and Super CDW (SCDW) are your first layers of protection. CDW limits how much you pay if the camper gets damaged, while SCDW is like a supercharged version of CDW, lowering your deductible even more. CDW is included in all campervan rentals in Iceland, meaning this type of insurance is already factored into the price of the rental. If you want SCDW, you’ll usually have to pay a bit extra, although sometimes it’s included in your rental – it’s a good idea to check this with your rental company.

Gravel Protection: A Must on Iceland’s F-Roads

Vital for the mountainous F-roads in Iceland, Gravel Protection (GP) covers you in case of damage caused by loose rocks or flying stones, which you’re likely to encounter even on the island’s main roads, and definitely on the gravel and dirt roads. Without it, you could be liable for windshield or bodywork repairs, which can be very costly. If you plan on taking any detours off the main Ring Road in Iceland (Route 1), such as to visit the famous Golden Circle or Iceland’s incredible waterfalls, GP insurance is a must.

Sand and Ash Coverage: For Iceland’s Volcanic Side

Next up, we have Sand and Ash Protection (SAAP), which protects you against the damage that sand and volcanic ash can do to your vehicle during strong winds and dry weather. As powerful sandstorms of both sand and volcanic ash occur frequently in South Iceland, SAAP insurance is crucial if you're driving in this area, such as to the coastal town of Vik or the mesmerizing Jokulsarlon Glacier Lagoon, where these natural elements can seriously damage your vehicle.

Theft Protection: Is It Necessary?

While theft is rare in Iceland, many rental companies in Iceland include this coverage in all their rentals by default. Although Iceland is generally safe, having Theft Protection (TP) insurance may offer you peace of mind during your travels.

Bundle Up: Extra Coverage and Premium Packages

Most rental companies offer insurance bundles that include all of these types of insurance, which can save you money instead of buying everything separately. You can also find comprehensive premium packages that offer zero excess, so you won’t need to pay anything at all in case of any damage or accidents.

For example, here at Campervan Reykjavik, we offer our clients basic CDW and third-party liability insurance, Premium insurance (which includes SCDW, Gravel Protection, Sand and Ash Protection and Theft Protection) and Platinum insurance (which includes all of the above, plus zero excess).

Choosing the Best Camper Insurance for Your Trip

When considering what camper rental insurance in Iceland to purchase for your trip, it’s important to consider what you’ll be doing and where you’ll be going.

Consider Your Itinerary

Planning to stick to the Icelandic Ring Road? Or heading into the Icelandic Highlands? Your itinerary determines what kind of camper rental insurance you’ll need; Highland adventurers will definitely need Sand, Ash, and Gravel protection for F-roads, whereas you might not need Sand and Ash Protection if you’ll be avoiding any potentially sandy or ashy areas (which are mainly in South Iceland).

Are Camper Rental Insurance Iceland Packages Worth It?

In many cases, yes – camper rental insurance packages in Iceland often combine multiple protections at a cheaper price than buying them one by one, while also reducing your deductible. We suggest taking a close look at the details of what’s included and compare it to your planned itinerary, so you can decide which insurance package is best for you.

Tips for Driving Your Camper Safely in Iceland

Driving in Iceland comes with a unique set of challenges. Here are a few of them to look out for:

Watch Out for Windy Weather

Winds in Iceland can be excessively strong, sometimes even yanking campervan doors out of your hands, causing major damage. Make sure to remember to always hold the door firmly, especially when parked facing the wind.

Steer Clear of Common Road Hazards

Loose gravel, roaming sheep and sudden potholes are all part of the Icelandic driving experience. The best way to counteract these common road hazards is to drive slowly and carefully on gravel roads, staying alert at all times. It can also really help to get the right camper rental insurance coverage for your trip to give you peace of mind.

Driving Iceland’s F-Roads: What You Need to Know

F-roads are rough, mountainous tracks only accessible with a 4x4 camper. They often involve river crossings and steep climbs. Driving them without proper insurance, or in a non-4x4, is both illegal and dangerous.

Camper Rental Insurance FAQs

If you have any remaining queries about camper rental insurance Iceland packages, here are some frequently asked questions to help:

Is Sand and Ash Coverage Really That Important?

If you're traveling in the South or heading inland during summer, yes – Sand and Ash Protection is super important. Sand and ash damage can be extremely costly and isn’t covered by standard insurance unless specifically added.

Can I Drive on F-Roads Without a 4x4 Camper?

No, F-roads are legally off-limits to 2WD vehicles. You’ll need a 4x4 camper and appropriate insurance. Rental companies can fine you for ignoring this rule, and insurance won’t cover any resulting damage.

What If I Damage the Camper and Don’t Have the Right Coverage?

If you damage your campervan without coverage, you’ll be responsible for all repair costs, which can quickly climb into the thousands of dollars. That’s why it’s crucial to choose your camper rental insurance in Iceland wisely based on your travel plans.

Embark on Your Iceland Road Trip Prepared and Protected

Traveling Iceland in a campervan truly is a once-in-a-lifetime experience. With the right camper rental insurance in Iceland, you can relax and enjoy every waterfall, glacier and volcanic wonder without worrying about unexpected costs. Choose your Iceland campervan rental and insurance, plan smart and let the adventure begin!