Iceland's roads include long gravel stretches and highland F-roads with unbridged rivers.
- Safetravel, the travel safety service of the Icelandic search and rescue association, warns that no insurance covers damage to a vehicle while crossing a river, and that off-road driving is strictly forbidden.
- Many Icelandic rental companies sell separate cover for gravel or sand damage, so read what your contract excludes before you drive.
- Iceland is part of the ECC Network, so you can complain through your home European Consumer Centre.
Iceland is built for road trips: the Ring Road, waterfalls, black sand beaches and, in summer, the highlands. It is also a country where rental cars meet conditions most drivers never see at home. Gravel, sand, wind and rivers cause damage that standard cover often excludes, so the contract matters more here than almost anywhere. Knowing what Safetravel and the consumer centres say helps you choose the right car, cover and evidence.
What makes Iceland different
| Condition | Typical risk | What to check |
|---|---|---|
| Gravel roads | Stone chips on paint, lights and windscreen | Whether gravel or glass damage is excluded or sold separately |
| Sand and volcanic ash in strong wind | Sandblasted paint and windows | Whether sand and ash damage is excluded |
| F-roads in the highlands | Underbody and suspension damage | Whether your car is allowed on F-roads at all |
| Unbridged rivers | Water damage to the engine and electronics | Safetravel: no insurance covers it |
| Strong wind | Doors bent when opened in a gust | Whether wind damage to doors is covered |
F-roads and the highlands
Safetravel, run by the Icelandic Association for Search and Rescue, explains that highland driving on F-roads is very different from other driving. Conditions change quickly, there are unbridged rivers, and the roads are rough. Not every four-wheel-drive car is suitable: some F-roads need a Dacia Duster-type car, others a Land Cruiser-type or larger, and some need a modified vehicle. F-roads are usually closed from mid-September until June or July. Check the road status on umferdin.is before you go.
Rental contracts often state which cars may be driven on F-roads. Driving a car on an F-road where the contract forbids it can make you liable for all damage, so check this at the desk.
River crossings
Safetravel's warning is clear: no insurance covers any damage to a vehicle while crossing a river. The risk is entirely yours, and damage can cost thousands of euros. River depth and current change constantly. If you are unsure, do not cross: turn around, or wait for other travellers. Safetravel advises planning your route, crossing slowly in low gear, not changing gears in the water, and going downstream.
Off-road driving
Safetravel states that off-road driving is strictly forbidden in Iceland. Gravel roads and F-roads are roads; driving off them is off-road driving. Besides the legal risk, damage from off-road driving is typically excluded in rental contracts.
Gravel, sand and ash cover
Many Icelandic rental companies offer separate protection for gravel damage and for sand and ash damage, on top of the basic collision damage waiver. Whether you need it depends on your route and on what your contract excludes. Before you buy anything at the desk:
- read which parts of the car the basic cover excludes, such as glass, tyres, underbody, lights and paint;
- check whether your own excess insurance covers those parts;
- ask what the excess is for each type of damage.
Our guide to windscreen, tyre and underbody damage explains why these parts are so often excluded, and the excess calculator compares desk cover with your own policy. See also CDW, excess and super cover explained.
Documenting the car
- Photograph and film the whole car at pick-up, including the windscreen, lights, wheels, the paint on the front and the underbody edges. Use the pickup photo checklist.
- Make sure every mark is on the pick-up report.
- Hold doors firmly when opening them in strong wind, and park facing into the wind.
- Film the car again at return, with the time visible, and ask for a joint inspection.
If you receive a damage charge
- Ask for the return report, dated photos and the repair invoice or estimate, and check the price with the amount check.
- Compare the claim with your pick-up photos and video, and with what your contract excludes.
- Object in writing with your evidence, using our sample letters.
- If the company does not move, contact your home European Consumer Centre. Iceland is part of the ECC Network, as ECC Netherlands confirms. See which European Consumer Centre to contact.
ECC Iceland reported that most complaints it received in 2021 were about car rentals and passenger rights, so the centre knows these disputes well.
A short example
You rented a small SUV in Reykjavik for a week on the Ring Road and bought gravel protection at the desk. At return, the company charges 290 euros for a windscreen chip and 180 euros for sandblasted paint on the bonnet. The gravel protection covers the windscreen, so you ask the company to apply it. For the paint, you check your contract: sand and ash damage is excluded unless you bought separate cover, which you did not. Your pick-up video shows the bonnet was already dull, so you object to that part with the video attached.
Frequently asked questions
Does any insurance cover damage from crossing a river in Iceland?
No. Safetravel states plainly that no insurance covers damage to a vehicle while crossing a river, and that the risk is entirely yours. Repairs can cost thousands of euros.
Is driving on a gravel road off-road driving?
No. Safetravel explains that F-roads and gravel roads are not off-road driving. Driving off marked roads is, and that is strictly forbidden in Iceland.
Can my European Consumer Centre help with an Icelandic rental company?
Yes. Iceland is part of the ECC Network. If you live in an EU country or Norway, your home ECC can work with ECC Iceland. ECC Iceland reported that most of its complaints in 2021 were about car rentals and passenger rights.