Campervan Insurance in Iceland: What You’re Really Paying For When the Wind Steals Your Door
You’ll remember the waterfalls. The lava fields. That sheep that stared straight into your soul.
But, hey, you know what else you might remember?
The moment you opened your camper door and it slammed into next week.
Welcome to Iceland: the land of fire, ice, and the kind of wind that files insurance claims.
If you think insurance is boring, that’s fine. But to that we say: so is paying €3000 because a rock got flirty with your windshield.
No worries, KuKu Friend: in this guide, we’ll break down what campervan insurance in Iceland really means. We'll talk types, prices, what’s covered, what absolutely isn’t, and why sand is more dangerous than it looks.
We won't bore you with legal jargon, sugarcoating, upselling. Just the real stuff. With a few cautionary tales for flavor.
After all, we're here to make sure the only wild part of your trip… is the landscape.
Why Iceland Campervan Insurance Is Not Optional (Unless You Love Living Dangerously)
Look, we get it: insurance isn’t really the sexiest part of planning a road trip, right?
But in Iceland, skipping insurance is kind of like skinny-dipping in a glacier lagoon. Technically possible. But also, absolutely bonkers.
Here’s the deal: Iceland may be one of the safest countries in the world, but driving here is no joke.
Think hurricane-level wind gusts, volcanic gravel that wants to eat your headlights, and sudden ash storms that make your van look like it’s been barbecued.
That’s why all KuKu rentals come with basic Collision Damage Waiver (CDW).
It’s included in the price, and it covers you in case of general damage or an accident. But (and it’s a big but), you’ll still be liable for up to €3000 in damage.
Yes, even if a sheep jumps in front of you like it’s auditioning for Fast & Furious: Iceland Drift. And yes, even if you just look at a road you weren’t supposed to be on (just kidding! Sort of...).
So no, insurance isn’t optional. Unless you came to Iceland specifically to test the limits of your credit card.
Types of Campervan Insurance in Iceland, Finally Explained Without Melting Your Brain
When you rent a campervan in Iceland, you don’t just get a set of keys and a smile: you also get a basic insurance policy (and the option to upgrade if you want to stress less about random lava pebbles and doors flying off into the fjords).
Let’s break it all down like we’re sitting around a campfire, not in a courtroom.
🧱 The Basic Layer: Included in Every KuKu Rental
CDW Collision Damage Waiver (included)
This is the default campervan insurance in Iceland.
It covers you for accidents and general damage, but you’re still responsible for up to €3000.
If anything happens (whether it’s a fender-bender or a mysterious dent after a stormy night) that’s your max liability.
✅ Included in every KuKu rental
❌ Doesn’t cover everything (wind, undercarriage, off-road, river crossings = no-go)
💳 No deposit needed if you’ve got a valid credit card
🎒 Optional Add-Ons: Build Your Own Safety Net
These extras can be added à la carte if you want to customize your Iceland camper rental insurance. They're not included unless you specifically pick them.
🛡️ SCDW Super Collision Damage Waiver (€20/day)
Brings your liability down from €3000 to €750.
Same coverage, smaller headache.
💎 PCDW Platinum Collision Damage Waiver (€30/day)
This is the top-tier collision damage waiver in Iceland.
You’re covered for damage and accidents with €0 liability…
BUT! (and this is important) that doesn’t mean you’re invincible.
Things like wind-damaged doors, river crossings, off-road driving, undercarriage damage, or reckless behavior?
Still not covered. Not even with platinum.
Read that again.
Extra-Extra Coverage: Add These If You Want to Play It Safe
These aren’t included in the CDW, SCDW, or PCDW.
You can add them individually, or get them all with a package (more on that below).
🪨 Gravel Protection (€10/day)
Iceland = gravel. Gravel = flying rocks. Flying rocks = cracked windshield or broken headlights.
Without this, you pay up to €500.
With this, you pay €0.
🌋 Sand and Ash Protection (€10/day)
Ever seen a sandstorm ruin a paint job? You don’t want to.
Ash and sand storms can destroy the exterior of your van: windows, lights, paint, everything.
Without this: you pay the full cost of repairs.
With it: €750 max.
🛞 Tire Insurance (€10/day)
Blow a tire in the middle of nowhere? That’s your job to fix.
But this covers the repair or replacement cost, plus the workshop fee.
(No, we don’t send a pit crew. Yes, you’ll feel powerful changing it yourself.)
All-in-One Packages: Less Stress, More Savings
If you don’t want to pick insurance like toppings on a hot dog, we’ve got pre-made combos.
They save you money and brain cells!
💰 Golden Package (€35/day)
Includes:
• SCDW (liability down to €750)
• Gravel Protection
• Sand & Ash Protection
Saves you €5/day!
💎 Platinum Package (€50/day)
Includes:
• PCDW (liability down to €0*)
• Gravel Protection
• Sand & Ash Protection
• Tire Insurance
Saves you €10/day!
*Again, “zero liability” does not mean “do whatever you want”.
You’re still not covered for river crossings, wild off-road adventures, undercarriage damage, or getting too cozy with hurricane-level winds.
This is Iceland, not GTA.
Real-Life Examples (What Actually Happens If You Damage the Van)
Let’s be honest: you’re not here for fine print. That means you want to know what really happens if something goes wrong.
Soooo here it is. Real scenarios AND real Icelandic chaos.
💨 THE DOOR INCIDENT (AKA “Gone with the Wind”)
You stop to take a majestic photo of a moss-covered lava field. You open the van door…
FWOOOSH.
It flings open like it’s trying to join a Viking battle.
The hinge snaps, the panel bends, and now your camper has a very expensive “ventilation system.”
With PCDW?
Sorry, wind damage to doors is never covered, not even with Platinum.
This one’s unfortunately always on you. Handle your doors like they’re made of glass and rage.
🪨 THE GRAVEL STRIKE (A Classic Icelandic Love Tap)
You're cruising a gravel road. A car passes.
Suddenly, CRACK. A pebble just karate-chopped your windshield.
No Gravel Protection? That’s up to €500 straight from your wallet.
With Gravel Protection? You shrug, take a selfie with the crack, and keep driving.
Keyword: gravel protection Iceland. Worth every cent.
🌋 THE ASH STORM SURPRISE (A Campervan Makeover)
It’s a windy day on the south coast. You wake up and your camper is now… matte gray.
Sand and ash storms have sandblasted your paint, lights, and windows.
Looks cool. Costs a fortune.
Without Sand & Ash Protection? You’re paying for a full repaint.
With it? Max damage = €750, which in Icelandic terms is like three burgers and a dip in the Blue Lagoon.
🛞 THE FLAT TIRE FIASCO (Muscle Edition)
Middle of nowhere. No cell service.
You hear that unmistakable thud-thud-thud. Yep. Flat tire.
You’ve got a spare (thanks KuKu), but no insurance.
- Without Tire Insurance? You’ll pay for the new tire + workshop fees.
- With it? Just swap it yourself, drive to a shop, and let the insurance do the rest. No stress, no drama, just sore arms and a good story.
🧊 THE “OFF-ROAD ADVENTURER” – No Insurance Can Save You Here
Someone (not you, of course) sees a cool path off the Ring Road and decides to “explore.”
Big rock → undercarriage damage → oil leak → engine issue → vacation over.
Aaaand guess what?
Undercarriage damage is never covered.
Not with CDW. Not with Platinum. Not even if you ask nicely, unfortunately.
Lesson: stay on marked roads, and always check your route. This isn’t Mario Kart.
What’s Not Covered by Campervan Insurance in Iceland (Yes, Even the Fancy Ones)
We’ve mentioned some of this before, and that’s on purpose. Because when it comes to campervan insurance in Iceland, the exceptions are just as important as the coverage.
Actually, they’re more important. This is where most of the surprise costs come from.
So let’s take a closer look at what your Iceland camper rental insurance doesn’t cover, even if you’ve gone full Platinum, bought every add-on, and blessed your van before departure.
Off-road driving and forbidden roads (insurance? Gone.)
Driving off-road in Iceland isn’t just a bad idea, it's actually quite illegal. And no, taking a “shortcut” through a lava field does not count as exploration, it counts as a fine!
Your campervan rental insurance in Iceland is instantly voided if you drive on roads that aren’t allowed for your vehicle category. That includes:
- F-roads with 2WD vans (strictly forbidden)
- Specific rough roads like 35, 550, 208, and 864
- Any unmarked or closed roads (even if Google Maps says it’s fine!)
If your van is found in one of those places, you can get slapped with a €500 fine, and your insurance says “not my problem.”
River crossing damage (no insurance, no exceptions)
This one’s short and brutal: river crossing damage is never covered.
Even with a 4x4 camper. Even with the Platinum Package.
If water floods your van or causes mechanical damage, it’s all on you.
You’re renting a campervan, not a submarine, so don’t test it!
Undercarriage damage (hidden and expensive)
Here’s the silent killer: damage to the undercarriage is not covered by any insurance plan.
Why does this matter? Because Iceland is full of sneaky rocks, potholes, and uneven gravel tracks.
If you drive over something and it messes with your oil tank or suspension, you won’t notice until it’s too late. And you’ll definitely notice when the repair bill hits.
Tip: if you do hear a weird noise or suspect something's wrong underneath, stop and call us. Small problems ignored become big, loud, expensive ones.
Wind damage (yes, your doors are at risk)
Welcome to the most infamous villain of Icelandic road trips: the wind.
People laugh at it, until it grabs a camper door and flings it wide open like it's had enough.
Door damage from wind is never covered, under any insurance level. Not even PCDW.
We can’t say this enough: always hold the door with both hands when opening, especially on the south coast, where the gusts hit harder than reality after vacation.
Other surprises not covered by our KuKu insurance
- Flat tires, unless you’ve added tire insurance. Even then, you have to change the tire and bring it to a workshop.
- Lost or locked keys: trust us, it happens more than you’d think, and yes, it’s on you.
- Wrong fuel: putting diesel in a gas van (or vice versa) is a classic Icelandic oops, and no insurance will save you.
- Dead battery: if you left the lights on, used the radio too long, or charged 9 phones overnight while the engine was off... that’s your bill (unless you can find someone to help jumpstart the car!)
- Speeding fines: they’re not covered, and we may charge a small processing fee on top. Icelandic speed cameras are small, sneaky, and everywhere.
No matter what level of camper insurance in Iceland you choose, the golden rule is: don’t push your luck.
Insurance protects you from a lot, but not from everything and definitely not from ignoring warnings, signs, or basic common sense.
You drive smart, we’ve got your back.
You go full berserker mode in the highlands… you’re on your own.
(Okay, just kidding, we will always do our best to help... but we may end up charging you!)
Final Thoughts: Insurance Isn’t Sexy, But Regret Definitely Isn’t Either
Still with us? Congrats, you now know more about campervan insurance in Iceland than most people do after something goes wrong.
If you want to get into the fine print (you're wild like that), check out our full list of terms and insurance exceptions.
And if you’ve still got questions (big, small, or “okay but what if a seagull steals my keys?”), just ask us.
Our customer service is here every single day from 8:00 to 18:00, and our roadside assistance runs daily from 8:00 to 20:00. Real people. Real help (no AI robots!).
Why choose KuKu?
Because we don’t just rent vans: we get you ready for the wildest road trip of your life.
• We’ve got a huge range of campers for every kind of traveler, from budget explorers to 4x4 highland hunters.
• You can add the extras you want, skip what you don’t, and build the trip your way.
• We’ve packed our website with practical resources (like this very article!) to help you prepare like a pro.
• And let’s be honest: our vans look awesome. Graffiti-covered, attitude-loaded, and easy to spot in a sea of grey rentals.
We believe road trips should be fun, flexible, and just the right amount of chaotic, not ruined by insurance surprises or boring vans.
So get covered, get ready, and let’s hit the road!
And seriously: hold the door. Trust us on this one.