Accidents and incidents can never be predicted, which is why it is important to be insured against most eventualities.

Vátryggingar í boði

All of our rental vehicles come with Third Party Liability Insurance, Collision Damage Waiver, Super Collision Damage Waiver, Theft Protect and with 150.000 ISK excess/driver liability (Silver Package).

We strongly recommend you add extended coverage to reduce your liability. Take into consideration that Iceland is prone to extreme weather conditions and gravel road which can cause damage to your hire car. Without insurance, you would have to pay for this damage out of your own pocket.

If you are insured through a third party insurance provider, such as a credit card or insurance company, you will first pay Lotus car rental for any damage and then get reimbursed through your insurance provider. Adding the insurance below will lower your deductible to 65.000 ISK (Gold Package) or 0 ISK (Platinum Package).

If you are not prepared to make this decision now, you can always add insurance when you pick up the car. The price is the same whether you book at the counter or online.

We sincerely believe it is in the best interest for our customers to add extended coverage to reduce their liability risk and increase their peace of mind


Tilboð Fáðu ókeypis WIFI þegar þú velur Platinum pakkann.

Third Party Liability Insurance i
Super Collision Damage Waiver i
Theft Protection i
Gravel Protection i
Sand & Ash Protection i
Tire Insurance i
River Crossing Protection i
F-road Insurance i
Damages caused by Animals i
Towing cost - Deductible: 35.000 ISK i
Free Car wifi & Online Check in i
Damages Not covered by any Insurance i
Sjálfsábyrgð 150.000 ISK 65.000 ISK 0.0 ISK
3.250-3.750 ISK
5.250-6.250 ISK


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 is included in your rental.

Super Collision Damage Waiver

Super Collision Damage Waiver (CDW): The Collision Damage Waiver covers the body of the vehicle for all collision damage that do not occur on F-roads , involve an animal or subject to exclusion for further information see the rental agreement. This insurance also covers the driver and all other passengers of the vehicle for any injuries. This includes emergency treatment, hospital stays, medical exams, and other expenses you may face. This does not apply when driving on closed, off-road, F-roads or driving where driving is prohibited.

Theft Protection

Theft protection (TP) covers theft of the rented vehicle. Deductible: 0 ISK

Gravel Protection

Gravel protection (GP) covers damages to the windscreen, headlights, front bumper, mirrors, the hood or any other part of the car when gravel or rocks get thrown on, at or into the vehicle by another car, machine or person. Gravel protection doesn't cover damage to the radiator or the engine.

Sand & Ash Protection

No regular car insurance covers damage from ash or sandstorm. The sand and ash protection cover those damages.

Tire Insurance

The tire insurance covers the tires and the wheels. In the case of a flat tire, the renter is responsible for changing the tire and putting on a spare wheel. In case of the renter not being able to do so the renter is responsible for transporting the vehicle to the nearest tire shop to have the tire replaced or fixed.

River Crossing Protection

This insurance only applies to 4x4 cars that are allowed by Lotus Car Rental to drive on F-roads. The river crossing insurance covers all water damages, damages to the engine, transmission, radiator.

F-road Insurance

This insurance only applies to 4x4 cars that are allowed by Lotus Car Rental to drive on F-roads. The F-road insurance covers damage that may happen when driving on F-roads (highland roads). This insurance also covers damages to the chassis of the vehicle.

Damages caused by Animals

No regular car rental insurance in Iceland covers damages done by animals, e.g. horses or sheep. This insurance covers those damages

Towing cost - Deductible: 35.000 ISK

This insurance covers the towing cost in case of car damage or break downs. The towing cost can often be very expensive (up to 600.000 ISK). If you have this insurance your deductible will be lowered to 35.000 ISK.

Free Car wifi & Online Check in

Special offer! Get FREE wifi when you book the Platinum Insurance

Damages Not covered by any Insurance

Intentional damages or damages due to gross negligence on the part of the driver. Damages resulting from the driver being under the influence of alcohol. Damages due to race or test driving. Holes burned into seats, carpets, or mats. Damages or towing costs resulting from driving on a closed road, off-road or in areas where driving is prohibited. Lost car keys, lost EV charging cable, losing the car Wi-Fi dongle, pumping the wrong fuel type into the vehicle, the car battery, both the 12V and the battery pack on fully electric vehicles. Full details can be found in our Rental Agreement.