Rental car in Iceland

Most US car insurance doesn't cover other continents, but some credit cards provide reimbursement-after-the-charge for this type of issue. Myself, I've often bought insurance through the rental company, but with the whole transaction actually booked through autoeurope.com. See related info at https://www.ricksteves.com/travel-tips/transportation/car-rental-cdw.

Iceland is hard on cars. Gravel, for one, is a problem. Many people get extra coverage for glass. Also, doors can become dinged when they get caught in the wind and hit the neighboring car. Most of the time, I just use the insurance on my credit card when applicable. However, I always price out full coverage insurance, and if it's inexpensive or if the area I'm driving in merits it, I buy the full coverage.

Thank you. I just came across Bonzah, available only to US citizens. It is coming out reasonable but has anyone used it?

Thanks, Laura and Jules. I just called my credit card company and they have emailed me the letter confirming rental collision damage waiver benefit.

We just got back from Iceland. We used a car and the insurance coverage was through my husband's American Express card since that is what we used at the time of booking. Driving is easy (maybe I just think that because we had spent the previous 2 weeks in the Scottish highlands LOL) but distances are great. What we thought would take 3 hours would take 4 to 4 1/2. It is truly beautiful and at times we wished we had taken tours so that we wouldn't be the ones driving. Having said that, it was great deciding where to stop and how long to spend at that stop. How long are you there? We were so busy exploring we never did get to see much of Reykjavik or a thermal bath. So my only suggestion is to slow down and enjoy!

Thanks, Nancy. I am glad to hear that you had a great time. We are there for 5 nights. Someone mentioned taking glass and gravel protection from the rental car company. I can certainly do if they offer at a reasonable rate for the peace of mind.
Do you have any recommendations for the itinerary x 5 N? I can do a combination of tours and self-driving. Still working on details. My teen son is certainly interested in volcanos and glaciers but I do not want to drive more than 5 hours each way. Thanks!

Just returned from a 22 day road trip around Iceland. We rented from Blu Car Rental - 2019 Toyota Rav4 SUV with Wifi. Great company to work with. Wifi worked everywhere even in the remote area of the Arctic Henge. Check with your credit card company regarding the insurance. We used Chase United Mileage Plus Explorer Visa card and that card provides physical damage to the rental. Be aware of purchasing gas. Many of the gas stations are self-service (no cashier) and required credit card with PIN. PIN for purchase NOT for Cash Advances which most American credit cards have. The answer to that is to purchase prepaid gas cards. My advise, buy Rick's Iceland guidebook it has a lot of good information.

The only thing I will add to this conversation is this...you need to double check with the coverage on your card. I have a Chase Sapphire that covers absolutely everything that might possibly happen to the car. But if I take even one small, additional piece of insurance from the rental car company it completely negates my insurance by Chase. Make sure to double check exactly what the insurance from your card covers and what the implications are if you take additional insurance from the rental company.
I rented a car in Iceland for 5 days and you need to make sure you are covered...the gravel thrown up from the road surfaces, the wind that can blow a door backwards and break it, the windblown sand that can literally sandblast the paint off your car...you need to make sure you are covered for all of it. It's a very raw environment, especially out on the ring road, and chances of something happening to the car in Iceland are higher than many other places! Worth it though...one of the most spectacular places I've ever been.
I rented from Fox and they were great.
For a piece of unsolicited advice...I would not spend all 5 nights in Reykjavik. You can reach the Golden Circle from there in a day, as well as the Blue Lagoon but the rest of it is further out and you'll see a lot more if you stay in other places as you move around. Otherwise you'll eat up a lot of time just driving to get to the places you want to see. The distances don't seem very far but with the unpredictable weather, narrow roads, one way bridges, and tour buses it can take a lot longer to get around than you think it might. Just my two cents!

Thank you so much, Anita. My visa from BOA covers any damage to the rented car. I just got the letter but I am still nervous with the stories I have been hearing about the rental car. We have already paid for our hotel so would be coming back. My son also noticed that it is going to rain all week. Is it better to do tours when it rains? Thanks