Iceland has four ways of damaging a rental car that barely exist anywhere else: gravel thrown into the windscreen, wind ripping a door off its hinges, volcanic sandstorms stripping the paint, and water damage from river crossings. Every one of them is common, and understanding which are covered and which are not is worth more than any other piece of rental advice.
1. Gravel damage — the most common claim in Iceland
Roughly a third of Iceland road network is gravel, and even paved roads have gravel shoulders and unpaved sections. When an oncoming vehicle passes at speed, its tyres throw stones. The result is a chipped windscreen, a cracked headlight or a damaged tyre sidewall.
How to avoid it: slow down when a vehicle approaches on gravel — well below the 80 km/h gravel limit — and move as far right as is safe. Most gravel damage happens in the moment two cars pass each other at full speed. Watch also for the transition from asphalt to gravel, which is often marked by a sign showing loose chippings and is where most tyre damage occurs.
Coverage: standard insurance in Iceland does not cover tyres and glass. Tyre insurance at 3,000 ISK per day is worth taking for any itinerary with significant gravel, such as the Westfjords, the Arctic Coast Way, the Eastfjords passes or the highlands.
2. Wind damage to doors — the expensive surprise
Icelandic wind regularly reaches 20 to 25 metres per second, and gusts far higher. Open a car door carelessly in that wind and it is torn out of your hand, bending the hinge or folding the door back against the wing. Repairs commonly run into hundreds of thousands of krona, and this damage is excluded from insurance almost universally in Iceland.
How to avoid it, every single time you stop:
- Park facing into the wind, not side-on to it.
- Hold the door with both hands and open it slowly, keeping a grip until it is closed again.
- Brief every passenger, especially children, before the first stop of the trip.
- On exposed days at Dyrholaey, Vik, Jokulsarlon or anywhere on the south coast, treat every door opening as a two-hand operation.
Wind warnings appear on vedur.is. A yellow warning means take care; an orange warning means genuinely do not open the door casually.
3. Sand and ash storms
Southern Iceland has vast black sand plains at Myrdalssandur, Skeidararsandur and Landeyjar. In strong northerly and easterly winds these lift into sandstorms that sandblast paint, pit glass and strip a car finish in minutes. Ash from past eruptions behaves the same way.
This damage is expensive, it is not covered by basic insurance, and it is entirely avoidable with one habit: check the wind forecast on vedur.is before crossing the south coast sand plains. If the forecast shows strong winds over a sand area, wait. Sandstorms pass within hours.
If you are caught in one: do not stop in the open if you can reach shelter, drive slowly with headlights on, and if visibility disappears, park with the rear of the car facing the wind and wait it out.
4. River crossings — never covered, ever
Water damage from fording a river is excluded from every rental insurance policy in Iceland without exception. If you drown the engine in a highland ford, the entire cost of the vehicle repair or replacement is yours, and recovery from the highlands is itself extremely expensive.
Rules if you are on F-roads in a proper 4x4:
- Never cross what you cannot see the bottom of. Walk it first if in doubt.
- Cross at the widest, shallowest point, not the narrowest — narrow means deep and fast.
- Drive slowly and steadily in low gear, creating a bow wave, without stopping mid-crossing.
- Rivers are lowest in the morning and rise through the afternoon as glaciers melt.
- If another vehicle has just crossed, watch where the water reached on their wheels.
Our F-roads guide covers vehicle requirements and the legal rules for highland driving in detail.
What is covered and what is not
| Damage type | Typically covered by basic insurance | How to protect yourself |
|---|---|---|
| Collision with another vehicle | Yes | Included in every Aurora rental |
| Gravel chips to windscreen and lights | No | Slow down when passing; consider tyre insurance |
| Tyre puncture or sidewall damage | No | Tyre insurance 3,000 ISK per day |
| Wind damage to doors | No | Hold the door with both hands, park into the wind |
| Sand and ash storm damage | No | Check vedur.is; wait out the storm |
| Water damage from river fording | Never | Do not cross unless certain; 4x4 only |
| Damage from driving on F-roads in a 2WD | No, and illegal | Rent a 4x4 for any F-road |
| Theft | Yes | Iceland has very low vehicle crime |
What to do if damage happens
Stop somewhere safe and photograph everything before moving the vehicle — the damage, the surroundings, the road surface and any other vehicle involved. Call us on WhatsApp at +48 729 854 633 or email carrentalaurora@gmail.com as soon as you have signal.
If anyone is injured or another vehicle is involved, call 112 first. The Icelandic emergency number covers police, ambulance and rescue, and operators speak English. For a breakdown, stay with the vehicle — in remote areas it is your shelter, and it is far easier to find than a person walking.
Do not arrange repairs yourself. Report the damage first; unauthorised repairs complicate any claim.
The three habits that prevent almost all of it
First, check vedur.is for wind and road.is for road conditions every morning before you drive. It takes two minutes and prevents both sandstorm and wind door damage.
Second, slow down on gravel and especially when passing oncoming traffic. The 80 km/h gravel limit is a maximum, not a target.
Third, respect road classifications. An F-road in a 2WD is illegal and uninsured. A river ford in anything is uninsured. Neither is worth the photograph at the other end.
Choosing a car that reduces the risk
Higher clearance and a proper 4x4 reduce exposure to the two most common problems — gravel and rough surfaces. The Dacia Duster, Kia Sportage and SsangYong Korando are all well suited to Icelandic gravel; the Toyota Hilux is the choice for serious highland routes. A low 2WD is fine on paved roads and a poor choice anywhere else.
Every Aurora Car Rental Iceland vehicle includes insurance, WiFi, GPS and free Keflavik Airport transfer, with no deposit and payment in cash on pickup in ISK or EUR. Tyre insurance can be added at 3,000 ISK per day when you book. See the fleet on our our cars page or check dates on the booking page. All vehicles are unavailable from 10 to 15 August 2026.
Frequently asked questions
Is gravel damage covered by rental insurance in Iceland?
Not by basic insurance. Tyres and glass are standard exclusions across Icelandic rental companies. Tyre insurance is available at 3,000 ISK per day and is worth taking for any itinerary with substantial gravel driving.
What happens if the wind damages a car door?
Wind damage to doors is excluded from insurance in Iceland and the repair cost falls to the renter. Prevent it by parking facing into the wind and holding the door with both hands every time you open it, and brief passengers before the first stop.
Are river crossings ever covered?
No. Water damage from fording is excluded from every rental policy in Iceland without exception. Only cross shallow, clearly visible fords in a genuine 4x4, and never cross water whose bottom you cannot see.
What is sandstorm damage and how do I avoid it?
Strong winds over the black sand plains of southern Iceland lift sand that strips paint and pits glass. It is not covered by insurance. Check the wind forecast on vedur.is before crossing Myrdalssandur or Skeidararsandur and wait for the wind to drop.
What should I do if I damage the rental car?
Photograph the damage and surroundings before moving the vehicle, then contact Aurora Car Rental Iceland on WhatsApp at +48 729 854 633 or by email. Call 112 first if anyone is injured. Do not arrange repairs yourself before reporting.
Can I drive an F-road in a 2WD car?
No. It is illegal in Iceland and it voids your insurance completely, so any damage — and any recovery from the highlands — is entirely at your cost. F-roads legally require a 4x4.
Drive Iceland with insurance included from day one
4x4 rentals from Keflavik, insurance, WiFi, GPS and free airport transfer. Tyre cover available. No deposit — pay cash on pickup.
Aurora Car Rental Iceland — Suðurbraut 890, 262 Keflavík | WhatsApp: +48 729 854 633 | carrentalaurora@gmail.com