Rental Car Damage in Iceland: What to Do Step by Step

Rental car damage in Iceland can happen anytime — gravel cracking a windshield, wind snapping a door, or a sandstorm stripping paint. Here's a step-by-step guide on what to do if it happens to you.

Most Common Types of Damage

• Gravel/rock chips — gravel kicked up from the road or oncoming vehicles damages windshields or paint. Most common on gravel roads.
• Wind damage to doors — the door opens too far in wind and bends. Very common and very expensive.
• Sand damage — sandstorms on the south coast strip paint and etch glass.
• Undercarriage — river crossings or rough tracks damage the undercarriage.

What to Do Immediately

1. Take photos — document the damage immediately from multiple angles. Also photograph the location.
2. Call the rental company — report the damage right away. Most companies have 24/7 emergency lines.
3. Fill out an incident report — the rental company will ask for a written description of what happened.
4. Don't repair it yourself — all repairs must go through the rental company to be valid.

How Insurance Helps

Insurance	What It Covers
CDW (Collision Damage Waiver)	Reduces excess for collision damage, but often excludes windshield, tires, or undercarriage
SCDW (Super CDW)	Reduces the excess even further
GP (Gravel Protection)	Covers gravel damage
SAAP (Sand & Ash Protection)	Covers sand and ash damage
TP (Theft Protection)	Covers vehicle theft

Typical Costs Without Insurance

Without insurance, costs can be enormous:

• Windshield: 50,000–120,000 ISK
• Car door: 80,000–250,000 ISK
• Undercarriage damage: 100,000–500,000 ISK
• Full paint damage (sandstorm): 200,000–600,000 ISK

Conclusion

Insurance isn't a waste — it's an investment. In Iceland, you're more likely to experience car damage than in most other countries. Always document the car's condition carefully at pickup and return.