Vehicle Insurance
Vehicle insurance consists of a Liability Insurance, Accident Insurance for Driver and Owner, and Windshield Insurance.
What Is Included?
Liability Insurance
Covers loss or damage caused by the use of the vehicle and its owner and/or driver is held liable for.
Accident Insurance for Driver and Owner
Covers bodily harm that the driver and owner may suffer.
OptionalWindshield Insurance
Covers damage to windshields as well as installation costs.
Questions and Answers
See all questions- What is vehicle insurance?
Vehicle insurance consists of liability insurance and accident insurance for the driver and the owner. Liability insurance compensates for personal injury and property damage caused by the vehicle. Accident insurance compensates for injuries suffered by the driver in an accident they cause, as well as injuries to the vehicle owner if they are injured as a passenger in their own vehicle.
What is comprehensive (kaskó) insurance?Comprehensive insurance covers damage to a vehicle if damage occurs for which the owner is personally responsible or if the vehicle suffers external damage. The policyholder chooses the deductible and pays it if the car is damaged, while the insurance company pays the remaining amount.
What is windshield insurance?Windshield insurance covers breakage of a car window, including installation costs. The deductible for windshield insurance is 25% per claim, but if the windshield is repaired rather than replaced, there is no deductible.
Where is vehicle insurance valid?The insurance is valid in Iceland, other EEA member states, the United Kingdom, and Switzerland. A condition is that an international motor insurance card, known as the “Green Card,” is obtained.
- What is a registration-required vehicle?
A registration-required vehicle is a motor vehicle, motorcycle, off-road vehicle, tractor, trailer for a motor vehicle or tractor designed for a gross weight of more than 750 kg, a caravan, or a camping trailer. Vehicles must be registered before being put into use.
What if the vehicle is deregistered or the license plates are surrendered?You notify us when a vehicle has been deregistered, and the insurance is then cancelled from the date of deregistration. This applies to mandatory vehicle insurance as well as voluntary insurance such as comprehensive insurance.
If license plates are surrendered without deregistration, comprehensive insurance is not automatically cancelled, as the insurance covers various types of losses that may occur even when plates are surrendered, such as vandalism, severe weather, and theft.
What if I participate in a driving competition?Liability insurance does not apply unless a racing endorsement is purchased. However, this endorsement does not cover damage the vehicle causes to other participants in a driving competition, whether bodily injury or property damage.
Accident insurance for the driver and owner, windshield insurance, and comprehensive insurance never apply during driving competitions.
Insurance Explained Simply
Insurance can be complicated. To make things easier to understand, we have compiled all the key information about the insurance in an information document that can be viewed with the terms and conditions.