What is included and covered
Select your plan

Simple & Transparent Pricing

For a carefree vacation in iceland we always recommend to our customers to upgrade your insurance.


Liability Excess 360.000 ISK
  • Collision Damage Waiver
  • Theft Protection
  • Gravel Protection
  • Sand and Ash Protection


Liability Excess 120.000 ISK
ISK 3.000
  • Super Collision Damage Waiver
  • Theft Protection
  • Gravel Protection
  • Sand and Ash Protection


Liability Excess zero isk
ISK 5.000
  • Super Collision Damage Waiver
  • Theft Protection
  • Gravel Protection
  • Sand and Ash Protection
Insurance details

What is include and covered

Information about insurances we offer.

We know how confusing and difficult it can be to understand insurance terms, but it does not have to be like that. That’s why we offer simple and transparent insurance packages that are easy to understand throughout the booking process and during your rental period. This way you know what is included and what is not, so nothing should come as a surprise to you.

When you book a car with Circle Car Rental there are three insurance packages that you can choose from. They have different insurances included and each has different liability excess. That means if you happen to have damage to the car when you return it you will be charged the liability excess amount.

Standard package - Included

Collision Damage Waiver (CDW) covers the bodywork of the car. In a collision, the bodywork is usually the first thing that gets damaged. The liability excess for all our vehicles is 360.000 ISK (approx. $2.850).

There are some damages not covered by the CDW.

  • Damages caused by negligence.
  • Driving while intoxicated.
  • Damage to tires, headlights, and underside of the car.
  • Damage caused by the wind blowing up the door.
  • Damages caused by driving into waters and rivers and when driving off-road.
  • Damage caused by sand and ash storm.


Theft protection (TP) covers theft of the rented vehicle. With that said Iceland is among the safest countries in the world and vehicle thefts are not very common. Though this is not common the car is always covered by insurance if it gets stolen. Keep in mind that theft protection does not cover items stolen within the vehicle. Theft protection has zero liability excess.

Added with Premium Package

Super Collision Damage Waiver (SCDW) covers the bodywork of the car in the same way CDW does, but lowers the liability excess from 360.000 ISK to 120.000 ISK (approx. $940).

Gravel Protection (GP) covers damages to the windscreen, headlights, mirrors, the hood or any other part of the car when gravel or rocks get thrown onto the vehicle by another car. The gravel protection is an important insurance while renting a car in Iceland as gravel roads are common around the whole island. When driving on gravel roads the small stones can leave chipped paint at the front of the bumper and can damage windscreen, headlights and mirrors. The liability excess is 45.000 ISK (approx. $350). Note that Gravel protection does not cover damages to the radiator or the engine.

Added with Platinum Package

Sand and ash protection (SAAP) is a special insurance because no regular insurance covers sand and ash damages. This insurance covers the vehicle for damages caused by volcanic ash and sandstorms. This type of damage is a very common damage, especially when driving on the south coast and can happen all year round. Sand and ash damages can be extremely costly and damage costs can range between 500.000 ISK (approx. $3.900) and 1.500.000 ISK (approx. $11.800). Without the SAAP the cost for the damage is completely on the renter’s responsibility.

Platinum insurance package brings down all the liability excess on each insurance down to zero. We want our customers to have the ability to have a carefree vacation in Iceland. This allows our renters to drive carefree with Circle Car Rental while exploring our beautiful island. Keep in mind that this is not extra insurance but an option for our renters to waive their liability in case of any damages to the rental car during the rental time.

The SAAP is included in the Platinum package and the liability is also zero.