Iceland car rental insurance: excess and deposits
A general explanation of the terms you will meet when renting a car in Iceland, so the quotes you compare mean the same thing. Back to the car rental comparison.
Deposit and excess are different
A security deposit is an amount held or guaranteed on your card at pickup. An excess, or deductible, is the amount you can be responsible for when damage is covered. Lower excess does not mean everything is covered: a zero-excess product still has excluded events, and an offer advertised without a deposit does not remove your liability for damage.
What the common labels mean
CDW and SCDW generally relate to your liability for damage and the level of excess. GP refers to gravel damage, SAAP to sand and ash damage, and tyre, glass and roadside assistance may be included or sold separately and vary between companies. These labels are not standardised promises, so read the exclusions in the contract and check that they apply to the vehicle and the roads you plan to drive, rather than assuming one package is right for every trip.
Rental company waiver versus third-party reimbursement
A rental-company waiver can reduce the amount charged for covered damage, subject to its terms and exclusions. With an excess-reimbursement product, you may have to pay the rental company first and claim back afterwards. EconomyBookings states that its Full Coverage is reimbursement and does not waive the security deposit. Check claim limits, documents and deadlines for the specific product.
Questions worth asking
- Which damage is covered, and which events are excluded?
- What is the excess for each damage type?
- Which card is required at pickup, and what hold is placed on it?
- Who pays first, and who reimburses afterwards?
- Which roads are permitted, and what roadside or towing help is included?
- Which records and documents are required if you need to claim?
Photograph the vehicle's condition at pickup and return where that is permitted, and read your card issuer's own wording before relying on it.
General explanation; your rental agreement and policy wording determine cover.
Compare Iceland car rental pickup and terms
Terms checked 11 September 2026: gocarrental.is terms and conditions · lavacarrental.is insurances · economybookings.com terms and conditions