Dealing with a Car Accident or Damage in Iceland

When you book a car rental in Iceland, you’re able to see so much more of the country than you could otherwise, and all at your own pace. The freedom and flexibility are incomparable. That said, driving in Iceland does come with its challenges, such as rapidly changing weather and unpaved or unmaintained roadways. Regardless of if you’re a very skilled driver and have driven in other countries many times, these challenges can still lead to the occasional car accident or car damage, even if you’re not the driver at fault.

Luckily, if you take the right precautions and invest in the right rental car insurance, you can better weather the unexpected, when it happens. Lava Car Rental has all the tips and advice you need to be confident and prepared if you experience a car accident in Iceland. 

From the common risks to what to do when car damage or an accident occurs, here’s what you need to know.

 

What is the Most Common Car Damage in Iceland?

In our work at Lava Car Rental, we see drivers come up against a few types of car damage in Iceland, most frequently. Some of the most common issues that we see include:

• Flat tires

While not as much of a worry on Iceland’s paved roadways, like the Ring Road, on Iceland’s gravel roadways, like those you’ll find in the Highlands, gravel can puncture your tire or otherwise cause tire damage. This is usually the case if the driver is driving too fast or recklessly.

• Rock damage

On a similar note, the gravel roadways can accidentally cause other car damage, if the gravel flies up from the road and hits the car body or windshield. This is usually the case if the driver is, again, driving too quickly, or if they’re driving too closely behind another vehicle.

• Wind damage

It’s not just snow and ice that drivers need to watch out for when driving in Iceland. Iceland is home to some very strong winds, too, and, if you don’t pay attention and keep a good grip on your car door when opening it, the wind can blow it out of your hand, damaging the door. For this reason, it’s also important to never leave the car door open while stopped.

 

Some of the less common but still fairly regular causes of car damage in Iceland include:

• Sand and ash storms

While less of a worry than wind storms, sand and ash storms can damage and scratch up the car’s paint and glass. Unfortunately, it’s not always possible for a driver to prevent this damage.

• Icy roads

When driving in Iceland in winter, icy roads can cause damage or an accident, if the driver isn’t careful.

• Wildlife and sheep

Iceland’s free-roaming wildlife occasionally attempt to cross roadways, proving a hazard for passing vehicles. Sheep are the most likely animal to interrupt traffic.

 

What to Do in Case of a Car Accident in Iceland

So what do you do if you end up in a car accident in Iceland? There are a few steps you’ll need to take.

 

1. Stay Calm and Ensure Everyone’s Safe

After you’ve stopped your vehicle and turned on your hazard lights, before doing anything else, be sure that everyone in the vehicle is safe. Likewise, if another vehicle is involved in the accident, be sure that the driver and all other passengers are safe as well. If there’s a need for emergency medical services, call the Iceland emergency number: 112.

Once you’ve ensured everyone’s safety, proceed to the next steps.

 

2. Document the Scene

So that you can inform your Iceland car rental company, you’ll need to document the scene of the accident. Use your phone to take photos of the damages to the vehicle, but also the roadway and area around the scene of the accident. This will help insurance providers process claims. 

In addition to taking photos, make a quick note of the day, time, location, weather and any other details that you feel are pertinent to the accident, such as if, for example, an animal was crossing the road at the time of the accident.

If it’s safe to do so, move your vehicle to a secure location, such as the side of the road, to prevent further accidents.

 

3. Notify the Police if Necessary

Even if no one was injured in the accident, you may still need to call 112 for emergency services and the police, if either the accident resulted in significant damages or if there’s a disagreement as to who was at fault for the accident. If the police come out to the scene of the accident, they will file a report, which you’ll need for your insurance claim.

 

4. Fill Out an Accident Report 

Lastly, you’ll need to fill out an accident report. The European Accident Statement is the European standard accident report.

Fill out the report in English, with both of the drivers’ full names and addresses as they appear on their IDs, their driver’s license numbers, the license plate numbers on the vehicles, and names and addresses for anyone who witnessed the accident.

Read the accident report carefully and check any relevant boxes in the second column. There will be two vertical rows of boxes, one row for each driver. Check the boxes that indicate what was occurring at the time of the accident, such as Vehicle A was changing lanes or Vehicle B was turning left, etc. At the bottom of the second column, both drivers will tally their checks, and the total number of each driver’s checks must match.

If you and the other driver cannot agree on what exactly happened at the time of the accident, you must put those details in the “My remarks” section of the form.

Then, both drivers sign the form. You’ll end up with two identical copies of the form, one for each driver. 

If one driver does not want to sign or disagrees entirely with the form, get the driver’s details, such as contact info, name, insurance details, etc., and give this information, along with your own completed accident report, to your car rental company. You may also be able to email it to your car rental company.

Key Reminders

• Fill out the report as soon as possible, right after the accident occurs and where it occurs, so you have all the information at the ready.
• If you don’t have an accident report form in your car, ask another driver for a form or call 112 for the police.
• Make sure the two accident reports, yours and the other driver’s, are identical.
• Be sure the number of checked boxes in the report’s second column are the same.
• Be sure that both drivers sign the report.

Handling a Damaged Car in Iceland

But what if you don’t get into a car accident in Iceland? What if, instead, you just end up with some car damage in Iceland, to your rental car? No one else was impacted, no one was hurt and the car still may be drivable. 

You’ll still need to take a few steps to ensure you can accurately file an insurance claim and provide all the necessary information to your rental car provider.

 

1. Make a Record of the Car Damage

First, take both photos and videos of the damage, as well as where you were when the damage occurred. Just as you would during an accident, take photos and videos of any other elements that might be relevant to the damage, such as road signs.

Then, also like you would after an accident, you’ll fill out the accident report form, but for only one car and driver instead of two.

 

2. Contact Your Rental Company

Then, you’ll call your car rental company and let them know about the damage. You will need to give the photos and videos you took, as well as the accident report form, to your car rental company, but this can sometimes be done whenever you drop off the vehicle.

If you’re renting a car with Lava Car Rental, then we’ll walk you through what needs to happen next, whether that’s arranging for some repairs, discussing costs or getting you a replacement vehicle for the rest of your Iceland road trip.

 

3. Check Your Insurance Coverage

Lastly, take a look at your car rental insurance coverage, to see how you may or may not be financially responsible for the cost of fixing the car. The amount you’ll pay will depend on your chosen insurance package.

Learn more about Lava Car Rental’s insurance packages for an idea of what to expect.

 

Understanding Self-Liability and Insurance

What is Self-Liability?

When purchasing your Iceland rental car insurance, you must understand the full terms and conditions, including liability, sometimes also referred to as self-risk. This is the amount that you can legally be asked to pay, in the event that you’re in a car accident or you damage the car during the rental period. Depending on the individual insurance package, you may be asked to pay a significant amount.

 

Why is Insurance Essential?

No matter where you plan to drive in Iceland, no matter what kind of Iceland car rental you choose for your trip, purchasing additional insurance is very important. Iceland’s roadways, while generally safe, do still come with risks, such as poor and unpredictable weather and unpaved roadways, which increase the likelihood of damage. With the right insurance, you’ll be able to go about your trip without worrying about accidental and costly damage ruining that trip.

When you book directly with Lava Car Rental, via the Lava Car Rental website, you’ll receive the following within your insurance package:

• A Super Collision Damage Waiver (SCDW): This will cover you in the event of most damage to the car rental, but there is a liability cap.
• Gravel Protection (GP): This ensures you won’t need to pay heavy fees for any damage that comes from road gravel, including damage to the car’s windshield or paint.
• Theft Protection (TP): This ensures that you’re covered in the event the vehicle is stolen during your trip.

We also recommend upgrading to a Full Protection Package, which comes with additional coverage and clears you of all liability. The Full Protection Package includes Sand and Ash Protection and Tire Protection.

Learn more about Lava Car Rental’s insurance options and pick the best fit for your needs.

 

What Is the Procedure for a Damaged Rental Car?

What happens if your rental car is damaged during your Iceland trip? Damage doesn’t mean you have to cancel your trip and go home. Here’s what you can expect from Lava Car Rental, based on the level of damage:

• Minor Damage: If the damage is minor and you can still safely drive the car, you can continue on with your trip and simply discuss the damage at the end of the trip, when you drop off the rental car.
• Repairable Damage: If the damage makes it so that you cannot safely drive the car, but if the damage can be quickly fixed, then you’ll be asked to take the car to a nearby garage for it to be repaired. Then, you can go on with the rest of your trip with the newly repaired car.
• Undrivable Car: If the car is completely undrivable and the repairs will take a while, then Lava Car Rental will provide you with a new, different car, for you to drive for the remainder of your rental period.

 

What Can I Expect to Pay for a Damaged Car?

It all depends on the insurance you purchased when you reserved your rental car.

 

If the Damage is Not Covered…

There are a few instances wherein insurance will not cover the cost of the damage at all, and you’ll have to pay for the full repairs, even if you did buy insurance.

These instances include:

• If you were negligent, such as driving under the influence of alcohol or drugs
• If you drove where you shouldn’t, such as off-road or in prohibited areas
• If you tried to cross a river or similar body of water
• If you improperly opened the car doors and they were damaged by wind

You’ll find that this is the case pretty much with anyone you book a rental car with, in Iceland. Before booking with a rental car company, check their terms and conditions to get specifics. For Lava Car Rental’s full details, refer to our rental agreement. 

 

If the Damage is Covered…

If, though, the damage occurred in a situation beyond one of the above instances, then how much you’ll pay for the damages will depend on your liability amount, according to the insurance package that you purchased.

Example: 

Damage cost: 500,000 ISK/3,538 USD/3,455 EUR | Liability: 150,000 ISK/1,061 USD/1,036 EUR | You pay: 150,000 ISK/1,061 USD/1,036 EUR

Damage cost: 50,000 ISK/353 USD/345 EUR | Liability: 150,000 ISK/1,061 USD/1,036 EUR | You pay: 50,000 ISK/353 USD/345 EUR

When Do I Pay for the Damage to a Rental Car in Iceland?

When you drop the vehicle off, you’ll provide the car rental company with your accident report and any other details surrounding the accident or car damage. The rental company will prepare an incident damage letter regarding the damage and then charge your required self-liability amount, per your chosen insurance. You’ll receive a copy of the incident damage letter, and your insurer provider may receive one as well.

Then, the car rental company sends the car for repairs. About 30 days later, the car rental company will let you know the true cost of the repairs. At this point, if the repair cost was less than what you paid for your self-liability at the time of drop-off, you’ll receive a refund to the credit card that you used for your rental car booking.

 

General Prices for Car Repairs in Iceland

How much do car repairs even cost in Iceland?

Here are some examples: 

• Tire price: 20,000–40,000 ISK/138–276 EUR/141–283 USD
• Replacement tire price: 8,000–15,000 ISK/55–103 EUR/56–106 USD
• Cracked windshield: 150,000–300,000 ISK/1,061–2,123 USD/1,036–2,073 EUR
• Towing: While exact towing fees depend on location, with Lava Car Rental, the renter’s responsibility is 400 ISK/2.83 USD/2.76 EUR per kilometer between the vehicle and Lava Car Rental’s office in Keflavik, or a minimum of 45,000 ISK/310 EUR/318 USD.

 

Tips for Preventing Car Damage in Iceland

The best way to deal with car accidents and car damage in Iceland, though, is to make efforts to prevent these issues in the first place. Remember:

• Drive Slowly on Gravel Roads: Keep your speed low and maintain a safe distance from other vehicles to reduce the risk of flying gravel.
• Be Cautious in High Winds: Open car doors carefully to prevent wind damage. Always park facing the wind if possible. Hold the doors. 
• Check Weather and Road Conditions Daily: Use www.safetravel.is to stay updated on conditions.
• Avoid Prohibited Roads: Driving off-road or in restricted areas is illegal and can result in severe damage.
• Stay Alert for Wildlife: Keep an eye out for sheep and reindeer, particularly in the countryside.
• Choosing the right insurance is another critical step in protecting yourself from unexpected costs.

Why Choose Lava Car Rental?

Lava Car Rental is here to help you have the most enjoyable and safest road trip around Iceland possible. As such, we’re always here to provide:

• Support: Our team is always available to assist you if something goes wrong. 
• Comprehensive Insurance Options: If you book directly on our website, you will already have insurance: SCDW, GP, and TP. 
• Liability-free insurance: Upgrade to our Full Protection package and you will have nothing to pay in case of damage. 
• Reliable Vehicles: Our fleet is designed to handle Iceland’s roads, helping you travel safely and confidently.

 

Travel Safely During Your Iceland Road Trip

Driving in Iceland is an adventure, but being prepared for unexpected events can make all the difference. If you experience a car accident or damage, stay calm, follow the steps above, and know that Lava Car Rental is here to help.

With the right preparation and awareness, you can enjoy the beauty of Iceland’s landscapes with peace of mind.

Safe travels!