Europcar Iceland car rental protection and insuranceoptions

Discover the Benefits of Car Rental Insurance in Iceland with Europcar

When you choose to rent a car in Iceland, Holdur car rental - Europcar provides complimentary car insurance, including mandatory coverage such as liability and accident insurance for both the driver and the vehicle owner.

This ensures a worry-free driving experience while exploring the breathtaking landscapes of Iceland. Our car rental coverages adhere to Icelandic law, offering third-party liability insurance and Personal Accident Insurance for the driver, meeting the specified legal requirements.

Europcar Iceland Car Rental Coverage Options

For added peace of mind, renters have the option to reduce their financial liability by opting for an own-risk fee, which includes Collision Damage Waiver (CDW) and Super Collision Damage Waiver (SCDW). The specific amount of the own-risk fee is illustrated below.

It's important to note that, even with the own-risk fee, renters may be responsible for a minimum payment in the event of damage to the rented vehicle during their rental period, as detailed in the pricelist.

Understanding Own-Risk Coverage

The own-risk fee applies to individual incidents, providing coverage for each separate occurrence of damage. In cases where multiple damages occur, but clearly not at the same time, the CDW and SCDW own-risk fees apply to each specific incident, ensuring comprehensive protection for your rental experience.


Car rental coverages and Insurance Options

CDW (Collision Damage Waiver)

Included in our rates and also covers you against Third Party Loss. Your Excess is ISK 250000 for passenger cars and/or ISK 450000 for 4x4 SUVs and bigger cars. CDW is included in our Basic Protection Package.


PAI (Personal Accident Insurance)

Included in our rates according to Icelandic law. PAI provides protection for injuries suffered by you or your passengers and/or a lump sum indemnity if you or your passengers are disabled or if you die as a result of the collision (or an accident). PAI is included in our Basic Protection Package.


TP (Theft Protection)

Included in our rates and covers you against theft of the vehicle. Does not cover the loss or theft of personal belongings. TP is included in our Basic Protection Package.


SCDW (Super Collision Damage Waiver)

This risk reduction cover lowers the excess of the standard Collision Damage Waiver (CDW). Your Excess is reduced from ISK 250000 to ISK 60000 for passenger cars and/or from ISK 450000 to ISK 110000 for 4x4 SUVs and bigger cars. SCDW is included in our Medium Protection Package.


GP (Gravel Protection)

Covers you against damages to the windshield and headlights caused by stones or gravel getting thrown at your car by another vehicle. Your Damage Liability Fee is reduced to zero amount in case of such damages. GP is included in our Medium Protection Package.


SADW (Sand & Ash Damage Waiver)

Covers you against damage caused by sand or ash storm. Such as ruined paint job, lights, glass, and plastic. SADW can be bought separately and is in no relation with other insurances. SADW is included in our Premium Protection Package.


ZERO (Zero Excess Cover)

Our premium Damage Cover reduces your excess of the SCDW and SADW insurances to a Zero amount. This insurance option is only available when our Premium Protection Package is selected.



Protection Packages for Peace of Mind

Insurance and protection packages for car rental customers in Iceland



Protection Package Prices:

Medium Protection Package
ISK 2400 per day for passenger cars
ISK 3900 per day for SUVs and larger vehicles

Premium Protection Package
ISK 4450 per day for passenger cars
ISK 6500 per day for SUVs and larger vehicles


Damages that are not covered by any insurance or protection


  • Damage caused by driving on rough roads to the vehicle's transmission, drive, other parts that are in or attached to the chassis; damage to the chassis resulting from scraping the bottom on rough roads.
  • Damages caused by driving in or across rivers or any kind of waterways. Such driving is totally the responsibility of the renter.
  • Damages to the rented vehicle caused by driving rental cars on roads or tracks with no road number and/or off-road driving, for example, on paths and tracks, on beaches, in areas only accessible during low tide, or in other trackless areas.
  • Damage done by animals.
  • Towing cost and vehicle replacement.
  • Damage affecting only wheels, tires, suspension, batteries, and damage resulting from this.
  • Holes burned into seats, carpets, or mats.
  • Damage resulting from the driver being under the influence of alcohol, stimulants, or sedatives, or in any other way incapable of driving the vehicle in a safe manner.
  • Damages to passenger cars and/or 2wd vehicles caused by driving on roads marked with an F on public maps as well as driving such cars on Kjölur (Road 35) or Kaldidalur (road 550).
  • Theft or damage as a result of the authorized driver’s/renter's lack of reasonable care in protecting the rental vehicle (for example, leaving the vehicle running and unattended).

Charges that are not covered by any insurance or protection


  • Charges applied when incorrect fuel has been added to the rented vehicles fuel tank, workshop hours and any damages to the vehicle’s mechanism.
  • Towing cost and vehicle replacement related to breakdown or damage that is the driver´s responsibility.
  • Towing cost and/or vehicle replacement if the renter/driver of the car runs out of fuel or electricity.
  • Fees and service charges resulting from the renter’s use of the car, such as parking charges and road-tolls as well as parking fines and fines resulting from violating traffic laws.
  • Fines and service charges resulting from driving rental cars on roads or tracks with no road number and/or driving Passenger cars and 2wd vehicles on roads that are marked with an F on public maps, as well as driving Kjölur (road 35) or Kaldidalur (road 550).
  • Fees and replacement cost for lost car keys and extra equipment.
  • Cleaning fee for Campers and Motorhomes.
  • Fine/cleaning fee if someone smokes inside the car because all our cars are non-smoking.


 Please refer to the Terms and Conditions of Rental for a full understanding of Damage Cover inclusions and exclusions.

Your safety is important to us

We encourage you to learn about the main things you need to know to ensure your safety while driving in Iceland. We offer good and useful information that could prevent unpleasant incidents and unnecessary costs. - Read more here.


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Europcar Keflavík International Airport location

Keflavík International Airport

Flugstöð Leifs Eiríkssonar
235 Reykjanesbær
Summer Hours: Daily 05:30 – 02:00
Winter Hours: Daily 05:30 – 01:00

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Holdur Europcar Reykjavík Central Skútuvogur 8

Reykjavík Central

Skútuvogur 8
104 Reykjavík
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Winter Hours: Mon-Fri. 08:00-17:00
Sat. 08:00-16:00 & Sun. 09:00-16:00

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Europcar Holdur Reykjavík Downtown Njardargata

Reykjavík Downtown

Njarðargata - Fluggörðum skýli 23
101 Reykjavík
Summer Hours: Daily 08:00-18:00
Winter Hours: Mon-Fri. 08:00-18:00
Sat. 08:00-17:00 & Sun. 09:00-17:00
Desk at Reykjavík Domestic Airport*

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Höldur ehf. - Europcar Iceland acts as a distributor for Vís insurance company.