Do I Need Gravel Insurance for Iceland Car Rental?

Gravel roads in Iceland

While main roads such as Route 1, better known as the ring road, are often tarmacked, Iceland still has a lot of gravel roads compared to many other European countries. In part, that’s because of the sparse population density in some regions and also because of its spectacular but challenging terrain and sometimes harsh weather. In general, gravel roads require far less maintenance, which is an advantage in less accessible areas of the country. They’re also cheaper and quicker to construct as we’ve witnessed in the Reykjanes Peninsula, where lava flows have required some infrastructural adjustments. However, the need for studded tires during the winter months means that road surfaces are often littered with loose gravel. 

What’s it like to drive on gravel roads?

If you live in an area where all the roads are tarmacked, it can be disconcerting at first to drive on gravel, though you’ll soon adapt. One of the most important differences as far as practicalities go is the impact on speed. As you embark on your road trip, you’ll see that gravel roads have a lower speed limit than their paved counterparts. This is because you’ll need more stopping distance as there is less traction on a gravel surface. Also, they are more susceptible to potholes, though this isn’t usually an issue outside of Iceland’s F-road network. 

So, what is gravel insurance and why might you need it?

Gravel insurance is offered in recognition of the increased chance of damage to a car’s paintwork, glass, and lights in Iceland. Windy conditions can exacerbate this risk, making it more likely that grit or gravel can be thrown up or against the car. It’s an especially important consideration in rural areas where there’s an increased likelihood of loose gravel being present on the road surface. No matter how careful a driver you are, there’s nothing you can do about stones and gravel thrown up by the car in front or by oncoming traffic. Nothing kills a relaxed holiday vibe like worrying about potential damage – and the cost of getting it fixed. Taking out gravel insurance, therefore, protects you from getting an unpleasant surprise when you return the car. 

Is gravel insurance the same as sand and ash protection?

Gravel insurance isn’t the only form of financial protection you might choose. Sand and ash cover is different, offering peace of mind for drivers who experience sandstorms or conditions where particles of ash might be thrown at the car. This is a risk in many different parts of Iceland but particularly in the south of the country and other wind-prone regions such as the Reykjanes Peninsula. As itineraries often evolve between making the car rental booking and your arrival in Iceland, you might unexpectedly find yourself on a gravel road.

If you’re looking into renting a car during your stay in Iceland, we recommend that you take out all the insurance that you might need. After all, you don’t know what road conditions you’re likely to face and it’s better to be safe than sorry. The additional premium is a small price to pay for peace of mind.

FAQ: Gravel insurance for Iceland car rental

Should I get gravel insurance in Iceland?

It’s a good idea to get gravel insurance if you're planning to drive in Iceland, especially on rural or gravel roads. It offers peace of mind, protecting you from unexpected costs due to gravel damage, which can happen even with careful driving.

What does gravel protection cover?

Gravel protection covers damage to the car's paintwork, glass, and lights caused by gravel or debris, which can be kicked up by other vehicles or the road itself, especially in windy conditions. It's especially useful on Iceland's gravel roads.

Do you need insurance to drive in Iceland?

Yes, you do need insurance to drive in Iceland. While basic insurance is usually included with car rentals, options like gravel and sand/ash protection can give you extra coverage, particularly for Iceland’s unpredictable road conditions.

How necessary is gravel insurance for a rental car in Iceland?

Gravel insurance isn’t mandatory, but it’s highly recommended if you plan to drive outside urban areas. Many of Iceland’s roads, including popular scenic routes, have loose gravel that can cause damage to your vehicle. Even careful drivers can’t always avoid small stones kicked up by passing cars. If you want to avoid unexpected repair costs, gravel insurance is a smart choice.