Welcome to Route 1 Car Rental in Iceland

We offer personalized service, new cars and low prices!

What insurance do you need to rent a car in Iceland?

Driving in Iceland is one of the finest ways of seeing this spectacular country. That said, whatever the time of year you visit, if you rent a car in Iceland, you should be aware of the hazards of the roads and take necessary precautions as they can be somewhat treacherous to navigate.

Insurance to rent a car in Iceland

Insurance is a must when you come to rent a car in Iceland. Not only is it against the law to drive in the country without it, but you need to ensure you're protected against many of the pitfalls of the hazardous driving conditions in the country.

At Route 1 Car Rental we include a Basic Insurance package with all our vehicles. You should ensure you check with us exactly what this covers, and what the excess payment is if you do have to make a claim. You can then purchase optional extras for your insurance, which include lowering the excess fee by a large amount or even to 0isk.

Insurance to cover where you are going to drive

We at Route 1 Car Rental offer many additional insurance options in addition to our cheap car hire in Iceland. You should think about these in respect to where you are going to travel during your stay.

If you're planning to use some of Iceland's gravel roads and mountain roads, it is also worth looking into our Gold and Zero Excess insurances as they include our Gravel Protection. This will partially cover (Gold) or fully cover (Zero Excess) your rental vehicle against the damage that gravel can do to the paintwork, the lights and the windscreen. Window and gravel damages have an excess of 25.000isk with the Gold Insurance and 0isk with the Zero Excess.

If you're planning on driving to see any volcanic attractions, it is also worth looking into our Gold and Zero Excess insurances as they include our Sand and Ash protection. This will partially cover (Gold) or fully cover (Zero Excess) any damages caused to your vehicle by ash and sandstorms, which you might encounter if you're going to visit such attractions.

Personal insurance when renting a car in Iceland

We include a theft protection with all our vehicles, as well as a CDW and TPL. Many visitors have their own travel insurance and personal insurance from their bank or credit card, so it is worth checking with your provider what they cover also before deciding on your insurance package.

Always ask for advice from your rental car agent

When it comes to driving, the advice of the locals in Iceland is invaluable. Always take advice from your Route 1 Iceland car rental agent when choosing your insurance package. Just show us your travel plans and a map of where you want to drive during your holiday in Iceland, and we will be able to advise you regarding what insurance you should need. We will of our best to help make your trip to Iceland a comfortable and a safe one.

Included insurances

All our rentals include the Basic Insurance package, which consists of CDW, Theft Protection and Third Party Liability Insurance.

The excess amount if dependant upon car type, which is specified under each insurance ''? mark'' for that particular vehicle.