Camuflaje by Andrés Nieto Porras is licensed under CC BY 2.0
Update December 2017: Worldwide Insure, my favorite excess rental car insurance company, no longer offers excess car rental insurance in Iceland. I recommend them for coverage in other countries, but you’ll have to go with Roamright or someone else for Iceland. See all of the details below.
Car rental insurance is baffling, and it seems to be even more baffling in Iceland. CDW. Super CDW. Grand CDW? Premium CDW? Sand and Ash? Gravel?
Note that, while the information below is customized for Iceland, much of the information can apply to other countries as well. Especially the credit card insurance options.
Almost all rental car companies in Iceland include CDW
CDW stands for “Collision Damage Waiver.” So it’s not really insurance at all- it’s a liability waiver. The rental car company agrees to not charge you more than a certain amount of money for any damage to the car when you return it. How much can they still charge you? A lot. I took some of the more promising companies from our post about rental car companies, and compared their CDW limits:
All four companies include CDW coverage with the rental; there is no extra fee. Notes on each of the four:
- Icerental 4X4 sets your liability limit at $2,800, the highest amount here; all values have been converted to dollars and rounded to the nearest $50.
- Blue is not far behind at $2,700. But note that Blue also gives you Super CDW for free too, so this number isn’t very meaningful.
- Saga has different limits for 2-wheel-drive cars ($1,750) vs. 4-wheel-drive ($2,500).
- Geysir limits liability to $2,200, so they are the “cheapest” for damage for 4-wheel-drive cars.
But if you return the car with damage, I don’t think that the difference between $2,800 and $2,200 is going to be meaningful. Either way, you’re leaving Iceland with a bitter taste in your mouth.
You are more likely to have a problem with damage to your rental car in Iceland.
I don’t have anything more than anecdotal evidence. But there are dozens and dozens of stories online about minor damage turning into charges for hundreds or thousands of dollars. For just a few examples, see this post, entitled Are the horror stories about car rental in Iceland true?
In my opinion, very few of these cases are deliberate attempts to take advantage of tourists. (Let me know if you disagree!) A careful inspection for scratches or dents just seems to be much more likely in Iceland than it is in the United States. Make sure you take pictures, or a video, of the car when you receive it to make sure you aren’t charged for damage you didn’t cause.
Your credit card insurance probably will NOT cover damage
I am hoping someone can prove me wrong on this. But, it seems pretty clear: Visa and Mastercard will NOT cover damage unless you waive all rental car insurance. And, you can’t waive the basic CDW included with the rental. Therefore, no coverage from your credit card.
Visa says: “To activate coverage, complete the entire rental transaction with your eligible Visa card and decline the collision damage waiver (CDW) coverage if offered by the rental company.”
And MasterCard says something similar: “How to get coverage … Decline the Collision/Damage Waiver offered by the car rental company”
American Express SHOULD work. Their policy implies some wiggle room: “Coverage for theft of or damage to a Rental Auto is activated when the Cardmember declines the full Collision Damage Waiver or similar option (CDW), or pays for a partial collision damage waiver, offered by the Rental Company.” But note that there are some exclusions that could impact you: Cars must cost under $50,000 new, so they won’t cover a Toyota Land Cruiser or Range Rover. And, the terms say: “Compact sport/utility vehicles, including but not limited to Ford Explorer, Jeep Grand Cherokee, Nissan Pathfinder, Toyota Four Runner, Chevrolet Blazer and Isuzu Trooper and Rodeo are covered when driven on paved roads.” There are lots of gravel roads in Iceland; will they not cover your SUV when driven on a gravel road, or especially an F road?
Some people have called their credit card companies and been told that they will cover Iceland, though you may need a note from the rental car company saying that the coverage is included.
You can decline CDW coverage from the rental company, but …
Your Visa or Mastercard insurance WILL most likely cover you if you decline the CDW provided by the rental car company. Several commenters online have said they were able to do this with Sixt (not a recommendation!) But when I imagine myself in this situation, it’s just not something I want to do. Imagine it yourself: You decline CDW coverage, which the rental car company was willing to give you FOR FREE. Then, something happens to your car, and it causes $15,000 worth of damage. You probably won’t have to pay the money up front, but just submit a claim to the credit card insurance. But you’ll worry the entire flight home, and maybe for many weeks after that, if you credit card will reimburse you or not.
Instead, you could have paid the maximum out of pocket with CDW, which is around $1,000 for a 4WD car from my recommended company, Blue Car Rental. (We’ve partnered with Blue to get you a 5% discount on your rental!) Then you can hope that the rest is covered by your excess insurance company (see below). The excess insurance costs about $8 a day. So for under $60 for a week’s rental, you avoid the $15,000 out-of-pocket hassle.
One more strike against the credit card insurance: Some cards offer secondary coverage, which will only kick in after your personal auto insurance gets involved. I’d rather not have my insurance company involved.
Super CDW (SCDW) in Iceland is better, but still could cost you.
Some of these are becoming more tolerable. If you damage your 2-wheel-drive rental from Geysir, you’re only out $250. But you’re paying about $10 a day for the privilege of paying $250 at the end. Blue’s limits don’t look very good here, but they provide you this coverage for free, and these limits are lower than any of the free CDW coverage listed above.
Note that Saga offers two more expensive levels: Grand CDW ($16 a day, adds windshield and gravel protection, limits liability to $200 / $250) and Premium CDW ($38 a day, $0 liability, adds Sand and Ash protection). So at least at $38 a day, you have no worries.
Gravel insurance may be a nice add-on
Gravel insurance protects you against damage on the front of your car caused by gravel (usually kicked up by other cars.) All of the companies here charge about $5 a day for it. Blue includes it for free, which is nice, and Saga only sells it as part of the Grand CDW or Premium CDW packages. For a few extra dollars, this seems like a good option. But if you opt for third-party insurance (see below) this may be redundant.
Sand and Ash insurance is probably not necessary
Besides a total loss of the car, sand and ash damage seems like the most expensive damage you can do to a car. In effect, the car is “sandblasted” by the small particles, which are driven into the car by high winds. Costs can be $5,000 or more, and are NOT covered by CDW or SCDW.
But here’s the important part about sand and ash: It is predictable. If you check the weather conditions and avoid high winds and storms, you should never have a problem with sand and ash. I guess you need to avoid erupting volcanoes too.
Many third party rental insurance policies also will not work in Iceland.
One option is to purchase insurance from the third-party company. But many of these still will not work. For example, Insure My Rental Car has language similar to the credit card companies, though only for some states. The travel policy document may say, “… the Covered Person must have rejected at the time of the rental any waiver of liability for Loss Damage available from the rental agency.”
TravelGuard from AIG looks like it could work. As far as I can tell, the policy does not mention anything about need to decline other coverage. But. the Travelguard coverage is not obviously much better than the SCDW coverage from most of the rental car companies– there is still a $250 deductible. And, TravelGuard never responded to my e-mailed questions, so I cannot recommend them.
The answer for Iceland: Excess car rental insurance from a few select companies.
Until June of 2017, my recommendation was to buy excess insurance from Worldwide Insure. They are incredibly responsive, they understand Iceland, and I’ve heard nothing but positive feedback about them. (See Richard’s experience with Worldwide Insure in this comment below. Be sure to take pictures of your damage!)
Sadly, Worldwide Insure no longer offers coverage in Iceland. For other countries, I highly recommend it.
Otherwise, for citizens and permanent residents of the United States, my new recommendation is Roamright. The have been reasonably responsive via e-mail and Facebook, and their policy doesn’t require you to decline other coverage. The cost is $7.99 per day; choose “Car Rental Insurance” (the last option) from the drop down box under “Coverage for”.
Allianz could also work for people in the United States, but they haven’t responded to my e-mails.
Recommendations for car rental insurance in Iceland
If the maximum out of pocket is reasonable for your car company (say under $500 or so) you may consider just paying for SCDW and gravel insurance, for about $15 a day. If the liability limit is closer to $1,000 or more, you should consider Roamright to insure the out of pocket amount. You can also just decide to self-insure up to the CDW limit, especially since paying for SCDW and Roamright can cost $20 a day or more.
The big downside of insurance from Roamright or another excess insurance company is that you have to pay the full price for any damage, and then wait to get reimbursed. It won’t be much fun to have to put $1,000 on your credit card (or possibly more for sand and ash) and then hope to get a check in the mail. Besides that, the excess insurance seems like a good option.
Many people still opt to go with their credit card insurance by declining the CDW. If you do this, which I don’t recommend, make sure you understand your credit card insurance policy clearly. Is it primary or secondary coverage? Does it cover the type of car you are renting? (Many exclude cars over a certain value.) How do you prove you declined the CDW?
And no matter which way you go, if you do ave any damage, make sure to take pictures of it!
How was your rental car insurance experience in Iceland? Do you have any experience with these third-party companies, good or bad? Let me know! And if you haven’t booked your rental car yet, take a look at our recommendation for Blue Car Rental.
Ally says
I’m also planning on going to Iceland in a few weeks. I called the insurance company who underwrites my Aeroplan Visa Infinite card and told them that the car rental agency will not allow me to decline CDW. The agent informed me that if that is the case then I need to write on the contract, “I attempted to decline CDW insurance from this merchant” and initial it, and have the person at the counter initial it as well. I was told that once that happens, then VISA will cover whatever the CDW does not cover, including deductible. (NOTE: These calls are recorded and the agent can provide you with a reference number for your phone conversation.) My sister’s Master Card World Elite Card actually has this caveat written in the coverage information.
Mike says
Hi Ally,
Did you finaly go … how did it end up working out at the Car rental…. did they comply and initial it ? Who did you rent from ? I have and aeroplan visa too… going in a few days with budget..
Eric says
Thanks, Ally! I just updated the post to discuss declining CDW from the rental car company. It’s not an option I would choose, but it seems to work for some people!
Liz says
Hi Ally,
Did the Aeroplan Visa Infinite insurance company also confirm that you would be covered for damages caused by gravel, sand, or ash if you declined the CDW from the rental company or did you add those protections? I have tried to contact them (through TD) but they are not open until tomorrow to confirm this and I am worried about the 4x4s booking up as my trip is quite last minute (leaving in 2 weeks).
Thanks!
Matt says
I just called, and they told me that ‘damages’ are covered, without exclusions. There are no documents that further specify what exactly they consider ‘damages’ but the agent assured me that punctured tires, cracked windshields, gravel damage is all covered. This is for the TD Aeroplan Visa Infinite credit card.
Eric says
Hi Matt! I assume you need to decline the CDW from the rental car company, correct? This may not be the same agreement you have, but it is for a “TD® Aeroplan® Visa Infinite” card.
“INSURED PERSON means (1) You the Cardholder, who presents himself (herself) in person at the Rental Agency, signs the rental contract, declines the Rental Agency’s CDW or its equivalent”
Edited to add: The policy above also excludes cars with an MSRP of $65,000 Canadian or higher. That’s just under $50 K US, and Blue (for example) has several cars above that threshold. If you rent one of those and decline the CDW, you are left with no coverage on a very expensive car! This is why I am wary of the credit card car rental insurance.
Sally says
Hi there,
After spending most of my Iceland planning months envisioning myself NOT renting a car (mainly concerned about not feeling comfortable driving in an unfamiliar country, and the cost), I spontaneously decided to rent after WOWair suggested I do so on one of its follow-ups to my flight confirmation. I’m renting for five days of our ten-day trip, and I’m being prompted to purchase the “excess insurance” at about $9/day. I’m leaning toward purchasing this, for peace of mind basically and I hope it’s going to be practical and useful in the event that I have any accident.
Thank you for this advice. Iceland here we come!
Frank K says
This – “You decline CDW coverage, which the rental car company was willing to give you FOR FREE. ” – is a fundamentally misleading statement. They are not offering it for free. It is built into their rate models and it is compulsory and built into the basic car rental cost. They are doing you favors by including it. They must do so.
Eric says
Hi Frank,
Fair enough. What I mean is that you will not receive a discount if you decline it.
Jane says
Hi,
Thanks for this useful post.
We’ll rent a campervan in Iceland next summer. The rental company offers SCDW for 15€ a day (2000€ liability instead of 1000€), GP for 10€ a day (100% cover) and SAAP for 10€ a day (100% cover).
When you writes about Worldwide insure: “They proactively told me that coverage applies to gravel, sand, and even river crossings”, do you mean they offer a 100% cover for damage due to gravel and/or sand&ash ? In other words, if I don’t take any insurance from the rental car company but only a 3€ a day excess insurance with Worldwire insure, it will cover the 2000€ CDW liability+GP 100%+S/A 100% ? Or do they only cover when there is “excess” (when a GP/SA insurance is bought but doesn’t cover 100%) ?
Eric says
Hi Jane,
Great question. First, here is what they e-mailed to me: “On Icelandic hires we also cover for gravel, ash and sand damage as long as you are only driving on public highways. We also cover accidental water damage caused by driving through a Ford.” My assumptions has been that it will cover 100% of gravel and sand and ash, even if you don’t elect the rental car coverage. But I will ask them to confirm, and let you know!
Eric says
Here is the response I received:
————–
You are covered for damage caused by gravel, sand, ash or accidental water damage provided you only drive on roads considered to be the main highways in the country you are visiting this does include F roads in Iceland as long as they are public highways. You would not be insured to drive off-road for the purposes of exploring away from the main highways, but would be covered if you needed to travel off-road to access your accommodation.
I can also confirm that we do not require you to purchase a base CDW cover from the rental company for our insurance to be insuring the vehicle but if this is included our policy will insure you for the excess/deductible on the rental companies CDW.
– Damage to tires, wheels, or glass YES
– Damage to the under-body of the car or suspension YES
– Damage due to rocks kicked up by other cars YES
– Damage due to sandstorms or flooding YES
————–
So I think you do not need to purchase any of the additional coverages to be covered for gravel or sand/ash. You may want to opt for the premium plan, which is slightly more expensive but has a much higher dollar limit. It does seem almost too good to be true that you can replace 35€ / day worth of insurance from the rental car company with a policy that costs 4€ a day, but that’s certainly what it seems like! Note that you will have to pay out of pocket for any damage beyond the CDW and then wait to get reimbursed by Worldwide Insure.
Enid B. says
I just looked at the Worldwideinsure.com website, and it now says “Excluding Iceland” for coverage in Europe.
Eric says
Thank you for pointing this out! It looks like Iceland has moved to the “Worldwide” category now:
“Worldwide: Anywhere in the world including Iceland, Algeria, Israel, Lebanon, Libya, the USA, Canada and the Caribbean.”
That makes coverage about 10% more expensive. Perhaps they were seeing more claims from Icelandic travelers? I’ll update the post and reach out to them for a comment. Thanks again!
Patrick says
Reykjavík Auto is a smaller family operated business, and that was apparent from their fantastic service! They took great care of me and were very accommodating when I had a scheduling conflict with my arrival. The car I received was new, clean, and in great operating condition. The staff were very friendly upon my return, and were happy to take me to the airport. I’ll definitely return to Iceland in the future, and I’ll be sure to book my rental car with Reykjavík Auto (https://www.reykjavikauto.com) if possible. Great experience all-round!
Eric says
Hi Patrick,
Glad you had a good experience! Here are a few concerns I have about Reykjavik Auto, though of course most people may have a good experience:
– Reykjavik Auto is too far from the airport to walk. Especially when returning the car, I thought it was nice to just walk 3 minutes back to the airport where my family was waiting.
– They say they have “new cars” but they don’t specify what that means. Blue specifically says the model years of their cars.
– Finally, I don’t think Reykjavik Auto actually rents their own cars? I think they are just an agent who rents from other car companies. I’d rather work with only one company.
Cristina says
Hi,
I’m researching for my future trip to Iceland. Thank you so much for taking the time to post all these useful information. Much appreciated.
I hope to rent a car for 3 days in June next year or when budget is adequate. I intent to visit typical sights (Golden Circle, basalt stacks, etc.) on Route 1 and go as far as Jökulsárlón. Don’t plan on driving on F Roads. I just want to make sure that I understood the excess car rental insurance. So if I rent from Blue, I take whatever insurance that’s already bundled into my rental cost, not taking the extra ash and sand protection, but purchase a 3-day extra insurance with World Wide Insure. This extra insurance would cover things such as ash & sand, windshield crack/chip, glass, underbody of the car, tires, etc.). Is my understanding correct? Now what about car door damage by wind, where would that be covered? I’m quite concerned and worried with some the horror stories about being asked to pay a large amount when returning the rental car.
Eric says
Hi Cristina,
I think your understanding is correct! I confirmed with Worldwide Insure that everything you listed is covered; I’ll paste in their list below. A few things to note:
– They don’t cover illegal activity. So if you were drinking, or if you drive off-road (illegal in Iceland) you won’t be covered.
– I think you will still have to make a payment to the car rental company and then get reimbursed from Worldwide Insure.
– Even if something is covered by Blue, they will still charge you up to the deductible; Worldwide Insure will also reimburse you for that.
Here’s their list of what’s covered:
What’s covered by Worldwide Insure:
Blue’s language:
-Negligence – NOT COVERED
-Damages caused by driving into waters and rivers and when driving off-road. – NOT COVERED, AS WE DO NOT INSURE OFF ROAD DRIVING
-Damage to tires, headlights, wind-screen and the underside of the car. COVERED
-Damage caused by the wind blowing up the door. COVERED
-Damage caused by sand and ash storm. COVERED
Worldwide Insure language:
– Damage to tires, wheels, or glass COVERED
– Damage to the under-body of the car or suspension COVERED
– Damage due to rocks kicked up by other cars COVERED
– Damage due to sandstorms or flooding COVERED
Cristina says
Thank you Eric for the lengthy explanation.
I don’t rent cars often can I ask about the deductible? Does it mean if the deductible on a certain is say $500 and the damage ends up being $1200 then I would have to pay Blue $700. Then I supply the receipt from Blue and submit it to Worldwide Insure for reimbursement. Am I right?
Dan says
I believe the deductible means that you would have to cover the first $500 dollars of damage, and they will cover anything past that.
Eric says
Right- thanks Dan! To get more specific, for Blue “the maximum self risk amount is ISK 90.000 for all 2wd cars and ISK 120.000 for all 4wd cars and larger passenger cars.” Those are the deductibles, and Blue’s SCDW insurance will take care of anything past that, as long as it’s a type of damage they cover. Those decimal points would be commas in the US, so 90,000 isk is about $850 US.
Cristina says
Thank you very much to both Dan and Eric for the clarification. I will indeed get the SCDW + Worldwide Insure.
Richard says
As I read this article before going to Iceland, which then resulted in a claim I thought I would share my experience.
On a recent Iceland trip I rented through Europcar (Holdur) and took out the Worldwide Insure excess policy. During the time I had the car the windscreen cracked badly from a stone chip, so when I returned the car I was charged about $450 as the standard excess for windscreen replacement.
I had to wait till my credit card statement arrived before submitting my claim as they require proof of the actual amount you paid. My claim was then returned asking for further info. They wanted photos of the damage and a copy of the invoice from the company that actually replaced the windscreen.
Fortunately Holdur were helpful and provided the photos and invoice but it did add another week to the process. Out of interest, the invoiced repair cost was about $730.
If I had upgraded to Europcar’s SCDW insurance, I would have paid an extra $60 to reduce my windscreen excess to about $200.
Instead it was more like $15 for the policy to reduce excess to $0. Yes the claims process was a bit of a pain and it did seem excessive to require the credit card statement and the invoice of the actual repair cost, but I’d still use them again (next time taking any photos of damage myself before handing over the car).
I’m not surprised WI have now classified Iceland in their World zone, higher probability of damage due to gravel etc and high repair costs etc. justify their decision in my view.
Eric says
Hi Richard,
Thanks so much for sharing your experience! It’s great to hear about how the claim was actually handled. I’ll update the post to make sure people know to take pictures of the damage– thanks again!
Cristina says
Hi Richard: sorry being a not-frequent car renting person, I’m not understanding your comment. Did you purchase Eurocar’s SCDW coverage? Were you charged $730 or $450? Are you saying to get Worldwide Insure coverage and not SCDW from Eurocar? Also did you choose Standard or Deluxe from WI?
Eric says
Hi Cristina,
Yes, this gets very confusing! And I don’t think Holdur specifies the maximum amount that the renter might have to pay under the various insurance plans. But here is what I think Richard was saying:
– His liability for windscreen damage was limited to $450, per the terms Holdur provided him in his rental agreement.
– Much later, he learned that Holdur had to pay $730 for the repair. This isn’t relevant to his wallet– he would have paid the same no matter what the actual charge had been to Holdur. But it feels nice to know that Holdur paid more than $450 for the repair; the amount Holdur charged him seemed reasonable.
– He did not opt for the SCDW from Holdur. This would have limited his maximum liability to $200, so he would have only had to pay $200 instead of $450. but, that extra coverage would have cost him $60. It looks like Holdur charges about $15 a day for SCDW, so maybe that would have been the charge for 4 days.
– Instead, he paid $4 a day for coverage from Worldwide Insure. This limited his maximum liability to $0. And, it would have covered more types of damage! Worldwide Insure offered 75% cheaper coverage than Holdur’s SCDW, and it’s better.
– I think either level of coverage (Standard or Deluxe) from Worldwide Insure would have covered this damage. But for the small price difference (something like 40 cents a day) I’d just opt for the Deluxe.
Cristina says
Thank you Eric for taking the time to clarify and break down the various points. I think I finally got it.
Basically since Richard purchased Worldwide Insure (WI) for small fee (about , he was able to reduce his car rental liability to $0. It’s a good deal. If he had taken the car rental’s SCDW ($15/day x 4 days=$60), he would still had to pay $200 (max liability with Holdur) out of pocket as the total damage cost was higher (being $450). Of course the only catch with WI is that you must foot the bill first, prepare the necessary documents (photos, credit card statement, car rental invoice for the actual repair) and wait for reimbursement. Yes it makes sense to buy Deluxe excess insurance from WI as it offers more coverage at a better price!
Eric says
Yup- you got it!
Jeff McCall says
I was just about to get excess insurance for my car rental in iceland based on this recommendation, but when I select my home country of USA, it responded, “We are currently unable to sell cover to anyone living outside of the UK or EEA. We hope to have an alternative policy in place soon and apologise for any inconvenience.”
Is this something new? I thought the recommendation was for people living outside europe? Anyway, just wanted to let others know!
Eric says
Hi Jeff,
Thanks so much for the heads up. Yes, this is new in the last few weeks. I have reached out to Worldwide Insure to see what is going on. I’ll update the post, let you know what I hear back, and look for alternatives if they will be necessary. Thanks again, and sorry it didn’t work for you.
Jeff McCall says
I ended up getting excess insurance through Allianz for about $10/day, and covers up to $40,000. Not as cheap but decidedly reasonable!
Fizza Mahdi says
I am going to Iceland in August and trying to get the rental booked but am torn about what to do when it comes to the insurance since I also live outside of the EEA or UK. Did you end up having to file a claim with Allianz, and if so, how’d they handle it?
Jeffrey McCakl says
Sorry I can’t comment on your specific question yet as I’m currently on my trip (I’ll be here until July 3rd) but will let you know how it goes when I get back (hopefully claim free!). I booked with Geysir, through the holiday autos broker. They tried to up sell me an SUV for 10 euro/day, but weren’t pushy at all. They ended up upgrading my car from a hyundai i20 to an i30 for free and we’re completely fine with my Allianz insurance plan. They did their pre inspection without me and I found a pretty prominent scratch, but they easily added it to the report. So thoroughly inspect your cars yourself!
Eric says
Hi Fizza,
I updated the post with new recommendations. Allianz looks okay, but they haven’t been responsive to my e-mails. Roamright has been better; that’s who I would go with if I had to buy something today.
Jennifer Patrick says
Eric….if I decline the CDW but accept the gravel insurance, will that negate my ability to file a claim if I paid with Visa/MC/Amex? Do I have to waive ALL coverage?
Eric says
Hi Jennifer,
Great question, and I’m not sure I have a great answer. You’ll need to look at the wording of your credit card’s policy. In the language in the post, Visa says you must decline CDW, and so you could argue that gravel insurance is not CDW. After all, there’s something actually called CDW! But Mastercard says you must decline the “collision / loss” waiver, and they could argue that gravel insurance is a loss waiver.
The problem is that you really don’t know until you file a claim, and then you find out if they decide to deny your claim based on the fine print. If you’re going to use the credit card travel insurance, I always recommend calling them to get specific answers, and documenting the call.
Ed says
So let me see if I got this right: if I got insurance from RoamRight, I don’t really need to add any additional insurance for car rental? It seems like a steal because insurance from RoamRight is way cheaper. They don’t even care where I’m going.
Eric says
Hi Ed,
Yup- that’s what I did. We didn’t pay for any extra insurance that the car rental company offered, and then we added excess insurance from Worldwide Insure (when they covered Iceland). I believe that it gives you the same coverage the car rental company would give you, but at a much much lower cost!
Stephanie says
I wanted to clarify and make sure I understand how excess insurance works along with cdw. I just rented a vehicle in which cdw is around $2100. I also bought a car rental policy from roamright. If there’s any damage (thru no fault of my own), I would pay the deductible (up to 2100 or the actual cost damage due to sandstorm, gravel, etc) and submit a claim for reimbursement from Roamright? I’m confused about how the cdw and excess work together.
Eric says
Hi Stephanie,
That’s exactly right. You can see Richard’s experience with filing a claim here. Having to pay up front is one downside of the third party insurance– if you buy insurance from the rental car company, you wouldn’t have to pay out of pocket as much. But the benefit is how much money you save.
Stephanie says
Thanks! Just had wanted to make sure I understood that even though cdw is included, the extra policy I purchased would cover those costs if something happens, and that has been others experiences as well.
Gary says
Going to Iceland soon and called my credit card benefits line several times over the last few days in regards to the coverage. I keep getting different answers from different agents but think I finally have gotten this down:
1) Citibank American Airlines AAdvantage Platinum Select World Elite Mastercard:
Called them several times and explained situation that the rental agency will not allow you to decline or waive the CDW. Once I explained that the CDW that the agency provides isn’t a full insurance coverage but instead limits the renter’s liability, it started to make sense. Basically, from what I’ve gathered, Citibank will act as a secondary coverage to the car. Meaning that they will pay the excess or deductible charges that the car rental agency makes you pay. For example, Thrifty’s terms & conditions state that the maximum out of pocket fee the renter would have to pay for damage is in between EUR 1600 & 2300. So if Thrifty charged you EUR 2300, Citibank would reimburse you for the EU 2300 fee that you had to pay.
I was told several times that in order for this to be valid, the rental agreement must indicate that the CDW is mandatory and/or could not be waived. I liked the last person’s suggestion of writing this on the contract and initialing it. I know that all calls are recorded so I asked for the agent’s name & they gave me their extension number.
One of the Citibank agents was familiar with how Iceland has a lot of gravel issues and said that their coverage included any type of damage including gravel, sand & ash. But another agent said that if the terms & conditions say you have to decline CDW, then their coverage doesn’t apply. He had a condescending tone and clearly didn’t know what he was talking about.
2) Chase Sapphire Reserve
Basically the same as above. I was told that if you can’t decline the CDW, make sure the agreement indicates this. I was given a “Call ID” number for the call and I also asked for the agent’s name.
Finally, I should mention that I am going to be renting a car from Thrifty in Akureyri and, via email, they told me that they allow you to decline the CDW. Route 1 Car Rental in Reykavik will not allow you to decline it.
In closing, I pay a lot of annual fees for my credit cards to receive benefits like auto rental coverage but it makes me quite nervous that you have to go through so many hoops and you still won’t know if it’s covered until you file a claim. I will be looking into the coverage options through Roamright.
Eric says
Hi Gary,
Thanks so much for sharing your findings. Those credit cards should be excellent for travel, and it’s disappointing that they still can’t give you a straight answer. And as you said, all that matters is the answer they will give you when you attempt to file a claim, and there’s still a risk that that answer won’t be a good one.
If you (or anyone else) does decide to go ahead and use your credit card insurance, I do think your advice is important: Either decline the CDW, or if that isn’t possible, have the rental company note on the contract that the CDW can’t be declined.
Gary says
This is a follow up to my previous post.
I am considering renting from Thrifty. In the FAQs section of their website, it states the following:
“Q: Is it possible to decline the CDW that is included in the rental rate (I have CDW insurance from my credit card)?”
“A: Yes, that is possible. However you can not decline Third Party Liability Insurance or Personal Accident insurance as these are mandatory under Icelandic law. Please send us an email at booking@dti.is with your reference number and let us know if you want to decline the CDW insurance.”
https://www.thrifty.is/customer-services/faq/
I was also considering renting from Route1.IS rental agency. I asked them to decline the CDW, and this was their response:
“Unfortunately we cannot waive the CDW insurance. Route 1 Car Rental includes the Collision Damage Waiver (CDW) in the rental price in accordance to the Icelandic Traffic Act. 50/1987, which states that no car may drive uninsured and must be registered with an Icelandic insurance company. The CDW covers all vehicle damages and personal injuries to a third party, as well as the client’s personal injuries. The deductible of the CDW insurance is 2.100€. The CDW insurance cannot be waived, as it is mandatory by Icelandic law and no exceptions will be made to this rule. That should not be any problem for us to write on your copy of the rental agreement contract that the CDW coverage is mandatory.”
I emailed Thrifty and told them what I was told by the other agency. This was their response:
“We can add a Decline CDW line to your contract for your insurance company, CDW is not required by law. Third party liability and drivers insurance are required by law. We simply remove the CDW which has a excess or deductible of 1600eur for 2×4 and 2300eur for 4×4. But still keep the required by law insurances.”
Assuming I do NOT decline the CDW, the only benefit of going through Roamright is that the maximum I would be out of pocket for damage is EU 1600 for a 2×4 car UNTIL Roamright reimburses me for it. If I decline the CDW with Thrifty, my credit card company will provide virtually the same coverage as Roamright; HOWEVER, I could be out thousands of dollars above the EU 1600 threshold until I get reimbursed. Now I understand what you said above about being worried the entire plane ride home! I’m thinking it would be a good investment for my conscience to get the Roamright coverage. I do realize that I’m paying a lot of annual fees to my credit card company for insurance coverage, but because damage to rental cards in Iceland is so much more expensive compared to other international destinations, a small extra charge from Roamright seems worth it to not have to be worried about filing a claim with your credit card company that could be thousands of dollars above the EUR 1,600 threshold.
Any idea on what the actual Icelandic law is on CDW? It seems as though one of the above agencies is wrong.
Gary says
Sorry for the additional follow up but I thought this through some more.
The CDW has nothing to do with windshield, gravel, sand and/or ash damage. So even if you accept the CDW (not decline it), you won’t be protected against these types of damage listed previously unless you purchase an add-on insurance policy from the rental company. Most of the scams and horror stories I’ve been reading online have to do with glass, gravel, & sand/ash damage. With that being said, I’m leaning more towards declining the CDW and going with my credit card company’s insurance. One of the benefits of having a credit card and paying the annual fees is to utilize their insurance benefits when needed. There is just so much fine print. My advice, read all the terms & conditions and document everything including taking photos of the car before and after you drop it off including the glass, exterior, interior and under carriage.
Eric says
Hi Gary-
Thanks for all of your research– I’m sure other readers will benefit from your work. A few thoughts:
– I do think it is legal to decline the CDW. Driving without insurance is most likely illegal, but you’d have insurance from your credit card if you declined CDW. The rental car company that told you it was illegal probably didn’t want to deal with confirming you had other insurance that would cover collision and liability.
– Maybe the main point is that the credit card insurance is a tradeoff between time and money. You can pay some extra money to get third party coverage from a company like Roamright (or Worldwide Insure, once they start offering it again.) Or you can use the free option from your credit card company. But that free option requires calling your credit card company, documenting those calls, and poring over all of the fine print. I’m a fan of paying a little more and saving the hassle, but either way can work!
Shirley says
Hello,
I will be visiting Iceland mid-January for 6 days and plan to drive from Keflavik International Airport along the southcoast to Jokulsarlon and back. I read all the above comments and just to get everything straight, I’m thinking of renting from Sixt, declining their Loss Damage Waiver (their equivalent to CDW?) and getting insured by RoamRight (~$47 for 6 days) that should cover the gravel protection and sand and ash protection? I also have the Chase Sapphire Reserve card that should provide rental car insurance. Is this the best way to go about renting a car for my trip to Iceland? Thank you!
Eric says
Hi Shirley,
You’ve actually come up with a combination I hadn’t thought of! The two scenarios I’ve considered are:
1. Keep the CDW from the rental company and supplement it with RoamRight
2. Decline the CDW and rely on your credit card company
You are suggesting to decline the CDW, rely on your credit card’s insurance but also pay for Roamright. Are you thinking that your credit card doesn’t cover certain types of damage? In general, I don’t think people typically buy Roamright to supplement their credit card insurance; credit cards offer secondary insurance, and I’m not sure if Roamright would invalidate it. You would have to check with the credit card company.
So I would say it’s best to choose one of the two scenarios above. I prefer option 1, but lots of people choose option 2. Good luck!
Christina says
Hi Eric: I just received the following email from Worldwide Insure today (Nov 30, 2017): “We are pleased to be launching a new policy from 1st December to cover customers living anywhere in the World. This will be available both through our office and online from 1st December.” This is great news. Being a Canadian traveller, we have less choices. I wonder if the price stays similar to before. I guess we will have to give it try starting tomorrow. 🙂
Eric says
Hi Christina-
Thanks for posting this! I received the same e-mail. I reached out to Worldwide Insure to confirm that the coverage will be as good as it was under the old policy. I hope to have lots of positive updates to this post soon!
Christina says
Hi Eric:
After trying to purchase car rental excess insurance for Iceland and noticed that it was not a country on the list. I emailed Worldwide Insure and was told that they no longer cover Iceland and Jamaica. Sounds like renting with Blue Car Rental is the best bet (which I’ve done for my trip next year).
Eric says
Hi Christina,
Agreed- I was excited when Worldwide announced they would offer insurance to anyone again, and then disappointed when they excluded Iceland. It’s too bad! I updated the post. Yes, I do think renting from Blue helps a little, since you get some extra insurance included in the price. Hope you have a great trip!
drew says
So this is all still very confusing! My main question…Is there a way to be totally covered from dents in the car and chips in the windshield upon renting the car from Blue or any other rental agency? Or is this just something you have to deal with after the fact? Or, can this type of damage not really be protected? Given all of the mess I read about, I’m willing to pay more to have total piece of mind. And it would be nice to not involve a third party.
Eric says
Hi Drew-
Yes, it is confusing! If you want (nearly) total peace of mind, you can book with Thrifty (thrifty.is) and add their “Premium CDW” insurance. It costs 35 Euros a day for a 2 wheel drive car, and 55 Euros a day for 4 wheel drive. Everything is then covered except for driving through rivers (so don’t do that!) or damage to the tires.
But for a 7 day rental, you’d pay about $290 for a 2 wheel drive car, or $460 for 4 wheel drive. Those values are about 35% – 40% of the maximum liability from Blue. So you’re kind of assuming there’s a 35%-40% chance of having damage. That seems expensive to me, but you may prefer knowing there’s no risk!
Drew says
Thanks! Makes sense.
Any experience with Hertz or Enterprise there in Iceland? I was thinking they might be better to work with because they have a larger corporate presence.
Eric says
I don’t have any personal experience with Hertz or Enterprise. I feel like I’ve read lots of negative reviews of Hertz– maybe more than any other rental car company in Iceland. But I’m not sure if that’s just because more people rent from them? I’ve been happy with the local Icelandic companies I’ve rented from: Blue and Holdur.
Drew says
Thanks for the advice and the site! We are off for a long weekend at the end of the month and the car rental is causing me the most stress.
Kirsten says
Ok. I feel like this is all very helpful but yet for me it is still information overload. It’s very confusing. I am from the US and want to rent next month. I can use my Amex for coverage but not sure this is the best move? Agent I spoke with said I am to decline CDW and the additional services but I can accept liability coverage, so not sure what that means. The will give me a letter stating my coverage but if I file a claim a police report is required. This makes sense if I am in an accident or I come to find my car has been hit in a parking lot. However not sure what happens if the car is returned upon inspection there are marks, wear and tear, window chip, gravel marks, etc. If this happens upon inspection when I return the car I wonder if Amex will cover? I am so confused. Not sure whether to go with Blue Car and their coverage, use my Amex, or purchase other coverage? Also saw that I can book a car through WOW Airlines and pay 45usd for Allianz coverage. Again, so confused as to what my best (and most economical) option would be….and one that would provide me peace of mind. Any help is appreciated…..
Eric says
Hi Kirsten,
Yes, it is very confusing! So I don’t like the credit card option, though lots of people choose it. I hate turning down the free CDW, thereby increasing my liability to the full value of the car. What if you have an issue and Amex decides not to cover it because of some fine print? You could be out $30,000. And the police report is a good thought– you won’t have one of those for a minor issue, so you could easily be out $1,000 there. I’m not sure if that’s an issue or not, though; you’d probably have to spend a long time on the phone with Amex to figure it out.
Third party liability insurance should be included with any rental in Iceland, and generally there is no reason to waive it. That shouldn’t be a problem if you opt for credit card coverage.
So I like going with Blue, or another company with reasonable CDW / SCDW rates and limits. (Blue provides one of the the lowest SCDW limits out there that’s included in the price of the rental.) Then you can decide if you’re willing to self-insure up to that CDW limit, or whether you want to buy excess insurance from Allianz or Roamright or someone else. That $45 from Allianz is going to protect you against maybe a maximum $1,000 CDW limit. It’s probably not a great deal; you’re probably less than 4.5% likely to have an issue. But it’s not a total rip-off either.
So you can either just get CDW or SCDW, and risk a small chance of a charge of $1,000 or so, or pay $45 to take the $1,000 risk away. In my mind, either of those options is better than spending time on the phone with Amex and poring over their fine print. (I will reach out to Allianz again to see if I can get a response from them.)
Kirsten Pepperney says
Seriously, Eric thank you so very much. I am going to book with Blue. I need to be done messing around reading 900 blogs and stories and scenarios. Need to put it to rest lol and focus on planning the remainder of our trip. Thank you for your help and opinions! Any must-do activity for end of March with my 2 teenage boys and husband? Already plan on doing Blue Lagoon first day, will drive Golden Circle (hopefully) on our own, snorkeling the Silfra and walking around the city another day, etc.
Eric says
Great! Sorry to be the 901st blog you have to read. 🙂
Snorkeling Silfra will be great. I don’t think there are any must do activities, but there’s a lot to do on the South coast if the weather is okay. You could look at some tours wit a company like Arcanum— the boys might like the quad bike ride over the black sand, or a snowmobile ride on a glacier? But you may not have time for that. Have a great time!
Alsupremo says
Roamright is only available for US residents and Worldwide for EU and UK residents so as a Canadian these are not available to me.
Also Allianz car rental insurance is also only available to US residents.
Eric says
Hi,
Yes, you are correct– I don’t think I’ve found an option that will work for residents of Canada. I’ll keep looking. But for now, your options are either to check with your credit card company, or oay for the rental car company’s insurance. Sorry!
Alsupremo says
I’ve booked with Rentalcar Group. They are a broker for 30,000 Cities that can find the best price and offer discounts. I selected Sixt that states in their conditions that if you provide a letter from the credit card company that they provide CDW they will rent the car with a small deposit. Iceland must hold the record for the most rental car companies especially for such a small population. It seems like the Wild West, many seem fly by night.
Eric says
Glad you found a solution! Yes, there are lots of new rental car companies trying to capitalize on the tourist influx in Iceland. And some offer poor service very poor quality cars!
Alsupremo says
An update. We completed our trip in August. Rental car group did a good job. Brought my credit card letter which said it would cover car rentals in Iceland. The lady at Sixt put major pressure on us to buy insurance and that the letter was useless etc. Also Insisted of us taking a GPS as cell phones wouldn’t work for google maps. We refused the GPS but then found the car had GPS as a standard feature. Also refused the insurance and everything turned out fine. She was there putting major pressure on another customer on our return. Car rental was really the only stress and poor customer service that we had in all of Iceland. Advice: go prepared and don’t put up with all the up selling technics these people place on tourists.
Eric says
Thanks so much for sharing your experience. I feel like I see a lot of negative experiences with Sixt. It seems disingenuous for them to say that cell phones wouldn’t work for Google maps. Glad you didn’t have any issues, and glad you got a free GPS!
Shruti Kotak says
We actually had the opposite experience with Europcar. We are advised by frnds to get in car wiff and when I requested for it at the rental desk our agent gave us a free Garmin GPS device and advised us to buy a local sim card and said their 4G network is great and in-car wifi will cost us lot more. We did buy the sim from 10-11 store in the airport and I was amazed that they we had 4G network even in the remotest places we went to.
Phil says
Any tips for a non-US resident looking for excess insurance in Iceland? Seems like worldwide insurance doesn’t cover Iceland anymore (or in my Country – I’m resident in the UAE)
Eric says
Hi Phil,
Unfortunately, I don’t know of any insurance options for you as a resident of the UAE. Sorry! Maybe another reader will chime in.
So your options are to go with a company that offers a high level of coverage, or self insure with a company like Blue. Good luck!
Mike Smith says
I spoke to Amex after reading through the coverage terms and not finding any requirement you deny CDW (or anything else) for the premium insurance, despite what many websites state. They told me you do not need to deny CDW or any other coverage if you are using the premium insurance option (the 19.95/24.95 paid option for the entire rental up to 42 days). They stated you can keep the basic CDW if you want and it would not affect the coverage. The also stated that damage like windows, chips, any damage etc is covered, except tires unless part of an accident that damaged more than the tires (as stated in the terms).
Eric says
Hi Mike-
Thanks for the information. That does seem like an excellent option for people who have Amex cards. My only concern is that Amex isn’t widely accepted in Iceland. But I guess if you make a reservation online, the online payment systems take Amex. Did you have any issues with using that card?
Thanks again.
Mike Smith says
Had no issues using an Amex to pay online. I just left the standard insurances on the car (which Blue does seem to allow you to remove) since Amex told me it was fine. Honestly I cannot imagine why they would want you to limit the liability if they were covering you anyway.
Shruti Kotak says
We’re going to Iceland next month and we’re getting flight, hotel and rental car bundle package from Expedia. Expedia offers an option of collision protection while booking the bundle, and it’s $11/day. Collision protection includes following things: Pays up to $35,000. Now with $0 deductible. Covers rental car damage from collision, theft or vandalism. The vehicle is covered for all authorized drivers. Primary coverage so you don’t have to go through your auto insurance. 24/7 emergency assistance. Has anybody ever purchased this rental insurance from Expedia or know if it’s a good option? Or is it better to buy directly from rental company? Our car is going to be through Europcar and is a midsize 4WD auto transmission SUV.
Eric says
Hi Shruti,
I looked into the insurance offered by Expedia. Looks like it comes from AIG Travelguard. Looking at their documentation I didn’t see any obvious issues. Well, besides the issue of the car having to be priced below $75,000 new. (Toyota Landcruisers cost more than this new.)
I reached out to AIG to ask about some Iceland specific issues: gravel, sand and ash, etc. I’ll let you know what they say!
Shruti Kotak says
Thank you so much Eric. I really appreciate it.
Eric says
Hi Shruti,
Sorry for my delay on this. I’ve been going back and forth with Travelguard about this. I’m probably too late to help you, but in case someone else reads:
The Travelguard policy says they will pay for “collision, vandalism, theft, windstorm, fire, hail or flood”. That doesn’t say gravel, which worries me. They also didn’t really understand my question about whether the renter needs to decline CDW coverage from the rental car company. So I might try something else.
Hope you had a great trip!
Kayla says
I am so happy to find this (and other) detailed posts about car insurance in Iceland. My son and I are going in May and I sat down to do some quick research about rental car companies aaaaand…..two hours of horror stories later I’m reconsidering my decision to rent a car. Well, not really, but I feel like I’m spending way, way more time trying to figure it all out than i normally would. And I work for an insurance defense law firm, so I probably have more understanding of car insurance than the average person. Anyway, I had narrowed down my choice to Blue Car Rental which is how I found your blog. Next: to overcome my fear of the dreaded Iceland roundabouts. 😉 I haven’t driven manual transmission in fifteen years, but the thought of re-learning it while navigating the roundabouts is intimidating.
Eric says
Hi Kayla,
Thanks! I (unexpectedly!) drove manual in Iceland, and I’d maybe only had 2 hours of manual driving experience in my life! I practiced in Blue’s parking lot for a little while. 🙂
You’ll get used to the one lane roundabouts pretty quickly. Just remember the rule for the two lane roundabouts: the inside lane has the right of way over the outside lane! So unless you’re getting off at the first road on the roundabout, choose the inside lane. You’ll sometimes see a line of cars waiting to enter on the inside lane.
Good luck, and let me know how it goes!
Shruti Kotak says
Hi Eric,
Thanks for your reply! Yes we had a great trip! It was raining and was foggy everyday except for the day we were leaving, so we couldn’t see northern lights but other than that everything about thr trip was amazing. We did get AIG insurance through Expedia, and unfortunately we did end up using the insurance. When we returned the car their agent noticed two bumps on driver side which we were not sure how they happened. We had to pay $2100+ to rental company upfront. They gave us all the paperwork and upon return to USA we filed a claim with AIG and they were very prompt in reviewing our claim and they reimbursed full amount that we paid to Europcar.
Eric says
Wow! I’m glad everything worked out. And I also wonder if those bumps were already there when you rented the car or not! 🙂
Glad you had a great trip!
Shruti Kotak says
Also, yes I believe Europcar did make us sign something saying we were declining their insurance as we already had one through Expedia.
Fahd Korambayil says
Any thoughts on rental cover dot com? Seems quite popular and by the same group as rentalcars.com dot com, booking dot com, etc.
Ps: your spam filter wouldn’t accept my original message.
Eric says
Hi Fahd,
First, I’m sorry your original comment was flagged as spam! We receive lots of rental car company spam, and I must have missed your original message.
Thanks for mentioning rentalcover.com. At First glance it looks like a promising option. I just reached out to them with my specific questions about Iceland. If I hear back and everything looks good, I may start to recommend them. Thanks again! I’ll let you know when I hear back.
Fahd says
No worries. I think the spam filter was just doing its job considering I was a first time poster with 3 urls in my post. 😀
Yes, it looks promising and I had purchased their cover on previous trips to UK & Scotland but never had to claim so all was well. Its in case I need to claim, and when it matters most that I’m worried about. And seems like Iceland in winter, one will almost always need to claim at least something based on what I’ve been reading. Also, the cost for Iceland cover is significantly higher than for my UK trips. Almost $650 for 2 weeks. Looking forward to your update. I’m on the fence with booking a BMW X1 from Blue for this coming March. Its too bad Blue’s liability waiver doesn’t cover tires and underbody or it would have been perfect instead of worrying about 3rd party claims.
Eric says
Hi Fahd,
I’ve gotten some information from rentalcover.com. It seems they have an “extra cover” option, but it is not available in Iceland. Too bad, because this would be a great option. Instead, you need to purchase their Full Protection plan. Which as you noted, is very expensive. And, Rental Cover told me that you need to choose the more expensive “4 X 4” option if you want to be covered for travel on gravel roads.
For me, this doesn’t seem worth it. Rental car companies limit your liability to $1000 or $2000, and this insurance costs $300 or $600. That seems like a huge premium to pay. It sounds like they will cover anything that happens to the car, including underbody, wind, sand, ash, etc. Everything except for driving through a river crossing.
So it would give you peace of mind, but I think you’re more or less paying for coverage twice! An excess policy that just covers what the rental car won’t seems more cost effective to me.
Fahd says
Yes, this is the attraction. “It sounds like they will cover anything that happens to the car, including underbody, wind, sand, ash, etc.”.
Unfortunately, I don’t have an option for this. “An excess policy that just covers what the rental car won’t seems more cost effective to me.”
Eric says
Hi Fahd,
Yes, if you’re outside of the US or EU region, I haven’t found a good option for excess insurance. You’ll have to decide if you want to pay for the full coverage from rental cover. I would probably elect to self insure, especially if you’re paying $500 to cover the $750 liability limit with Blue.
But I get your point about the exclusions for tires, headlights, etc. I’ll check with Blue to see if those are excluded from the full liability waiver option, but I think your reading of the terms is correct. Otherwise, I guess you’ll just have to decide the probability of having an issue. Tough call, I know!
Sido says
Excellent website and advice here. Thanks so much Eric for sharing your expertise and wisdom. It is certainly helping my wife & I greatly in figuring out an 8 day vehicle rental with my sister’s 5 year old twins in July (3 adults, 2 kids in 15-36kg child seats) coming from the U.S.
I’ll try to make my post/questions brief – I apologize if you have already explained this earlier carefully:
1) I have credit cards that give primary car rental insurance (Chase Sapphire Reserve, etc), however, I agree with you that it makes much life much easier to simply take the SCDW (which BLUE includes) setting one’s liability to USD$750/$1000 for 2WD/4WD.
2) Looking at BLUE’s insurance, the next option is Sand & Ash Insurance (SAAP). Based on horror stories I’ve read, It seems reasonable to consider it (~USD12.50/day) reducing liability from such damage to ~USD$750
3) Finally, the Liability Waiver offers completely peace of mind ($0 liability) for ~USD$32/day (which includes SAAP) but that is a bit steep.
4) Roamright: Looking at an updated quote – for USD$72, it appears the vehicle rented would be covered up to USD$35,000. Compared to the Iceland insurance prices, that seems a steal.
Questions:
– Could this be used to cover sand & ash damage? Seems like it, although the pain of having to file a claim later on after returning home for thousands of dollars seems a bit tricky based on some reviews of Roamright.
– So I believe you suggest that the Roamright policy could be used to cover the potential liability? That appears to make this a very reasonable way to get full liability coverage instead of taking the ~USD$32/day option? Again, one would file a claim for this later on, but might be easier since you would only have to cover up to a limited amount?
If all of the above is correct, I am leaning towards renting from Blue (maybe a Kia 4×4 Sportage Diesel – hopefully enough room for that 3rd adult between the kids seats in the back seat), taking on the cost of the SAAP (~USD12.50/day), but supplementing it with Roamright for the Liability remaining. Although – it sounds like you feel the SAAP might be unnecessary as long as you don’t drive in high winds especially with a Roamright policy?
Not sure if my questions were clear enough but we are all indebted to the time and effort you put into this!
Fahd says
Just be aware that option 3 does NOT cover…
“Damage to tires, headlights, wind-screen and the underside of the car.”
From their Terms – https://www.bluecarrental.is/useful-information/terms/terms-and-conditions/
This is my issue with their liability waiver. It should waive all liability except negligence, intoxication, river crossing, etc.
Eric says
Hi Sido,
I asked RoamRight if their policy would cover sand and ash and here is what they said:
“Eric, Thanks for reaching out. Our rental car policy states, ‘If You rent a Rental Car while on Your Trip and while in Your possession the car is: 1) damaged due to collision, theft, vandalism, windstorm, fire, hair, flood, or any cause not in Your control; or…’ Based on that, and no other outstanding circumstances that influence a claims decision, sand and ash as indicated in your question would be covered. Regards, The RoamRight Team”
So that sounds good, although the exclusion for a windstorm scares me a little bit. Hopefully that just means a hurricane, and their commentary seems to support that.
As you note, it’s probably still a good idea to avoid driving through extreme wind. Check en.vedur.is Right now there is actually an orange alert for South Iceland, including high winds. If you see that, I recommend changing your plans even if you have good insurance!
Lacey says
Yikes. This is so stressful. If I just do the liability waiver with Blue for peace of mind, do you think that the liability exclusions are a huge risk? We are basing out of Reykjavík and won’t be doing any off roading. We’re just planning on the Silfra Gap, Ring Road, and possibly going a little bit northwest. We are also two people that always treat our rental vehicles as though they are our own (and we take very good care of our vehicles).
Thank you very much!
Eric says
Hi Lacey,
Here’s the response I received from Blue:
“In regards to the LW the customer would still be responsible for the tires, underside and wind damages to the door (the two latter would by some part considered as negligence as it is easy to prevent by the customer himself) but the windscreen is part of the Gravel Protection so there the deductible would be zero.”
I don’t know what the real risk is here. On the South Coast I had my door nearly escape my hand as the wind forced it open. I have no idea if this would have been enough to break the door hinge. Probably not? Maybe if you only have that to worry about you’ll think about it more than I did!
Vic says
Thoughts on this potential issue with relying on third-party insurance: the rental car company could easily take advantage of claiming undercarriage gravel damage as it is difficult/unlikely for the renter to inspect/photograph the undercarriage, especially upon pickup. In such a case, the renter would have to front the damages cost and wait/hope for the third-party claim to work out. One approach to protect from this would be to purchase gravel protection through the car rental company (no other extra insurances) and a third-party excess insurance such as Roamright to cover everything else. Do you think this is a reasonable concern/approach or is it overestimating the probability of car rental company abuse?
Eric says
Hi Vic,
I think this is a good thing to think about. But hopefully using a reputable car company would minimize the issue of them trying to scam you with gravel damage. Blue Car Rental also includes gravel protection at no extra charge, and so that’s another reason why I recommend renting with them!
June says
Hello all traveling to Iceland! I have an Amazon prime rewards Visa card issued by Chase bank in the US ….great news! They provide SUPPLEMENTAL insurance ( for free for all card holders) to the required collision damage waiver insurance in Iceland. This means that you do not have to decline the CWD insurance and the supplemental insurance will pay your out-of-pocket costs until you meet the CWD deductible !!
Eric says
Hi June,
That’s great news! I think it makes sense to verify this with the language in your credit card agreement. Maybe you’ve already done this? This may not be the card you have, but here’s information about an “Amazon Rewards Visa Signature Card” which is also issued by Chase:
“Decline the rental company’s collision insurance and charge the entire rental cost to your Amazon Rewards Visa Signature Card. Coverage is provided for theft and collision damage for most rental cars in the U.S. and abroad.”
Is the language on your card different? It might be, which makes life a lot easier! Hopefully “supplemental” doesn’t mean supplemental to your personal car insurance policy!
Annette says
Hi, I found your article to be really useful in planning my car rental. I checked out Roamright and their price is quite reasonable. They do specify that “This policy does not include liability coverage” and that stumps me, which of the insurances offered by the rental company should I take, to cover liability? I looked at the Blue page earlier and didn’t see anything that seemed right. They do offer “Liability Waiver Small” but if I read correctly that’s a bundle of all their separately listed insurances, none of which specify they cover liability, plus zero deductible.
Thanks for any help you can offer.
Eric says
Hi Annette,
Good question! I think this refers to third-party liability, to cover damage you do to another person or vehicle. Most of the insurance we’re talking about here is collision, so damaged caused to the car you are driving.
By Icelandic law, any car you rent will have third-party liability insurance included. Since it’s mandated by law, no one talks about it.
Here are some people taking about this; see the first and third replies. This is confusing, so Llet me know if you agree with my assessment!
Annette says
I agree with you, and it’s such a relief! IYour response helped me even know what it’s called, then I could read even more about it, thanks. We found we have a credit card (a Capital One card, the Quicksilver) that will cover any damages not caused by our own negligence or intention (including sand and ash, gravel, windshield, undercarriage etc.) so I finally managed to book a car. In the rental car checkout pages I indeed saw that what they automatically included was liability coverage of some huge number in isk.
PW says
Mike Smith above addresses what seems a very good potential solution, if one has an Amex Card that is eligible for Premium Rental Protection (which I subscribe to). This is NOT the usual Car Rental Protection that comes with the card and required CDW to be declined, but a separate protection for which you pay $20-25 total for the whole rental (anytime you rent), and which is usable as primary auto insurance. I use it because when renting cars in the USA I don’t want to file a claim through my wife’s and my regular auto insurance and worry about premium hikes, and AMEX has always settled rental claims very well when they’re needed.
Going thru the paperwork, declining CDW is not required for the insurance to kick in, unlike Amex & other cards’ more standard rental car protection. You do have to enroll in it thru Amex, as it doesn’t come standard, but you’re only charged for it when you rent a car, not on some monthly or yearly subscription rate, and $20 for a whole rental is a pretty good bargain. It seems to share some of the benefits of the Worldwide Insure route that some folks have taken, only using one’s Amex instead.
It seems someone wanting full peace of mind could rent from Blue, for example, take the Zero Liability Waiver, and then in case one of those STILL-uncovered damages popped up (say, the doors blowing up), it seems Amex’s Premium Protection would cover that difference. (If one wanted to assume just a bit more risk, they could decline the SCDW and save a few $$ up front, as Amex SHOULD cover the larger deductible as well, but you’d have to pay the rental company out of pocket first if anything happened and then wait for Amex to process it.)
Eric says
This is a great summary and a great tip. Thank you!