Comprehensive Insurance for Vehicles
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What Kind of Insurance is Comprehensive Insurance for Vehicles?
Comprehensive Insurance for Vehicles is an optional motor vehicle insurance that covers damage to your own vehicle in cases where the driver/owner is responsible for the damage. The insurance also covers external events that cause damage to the vehicle itself. Customers choose their own deductible, and in the event of a claim, they are responsible for that portion of the cost.
What Is Covered?
Loss or damage to the insured vehicle due to sudden and unforeseeable events, notwithstanding an exemption clause in the terms and conditions of the policy.
Loss or damage due to fire or explosions caused by fire. If items melt or scorch in the absence of open flames, the incident is not considered a fire.
Loss or damage due to theft or attempted burglary or vandalism.
Loss or damage caused by stormy weather or if the hood, trunk cover, or doors are blown open.
Loss or damage caused by mudslides or floods, landslides, avalanches, strikes, or riots.
What Is Not Covered?
Loss or damage due to a car race, a rally, test driving, or training for such driving.
Loss or damage that can be traced to pets.
Loss or damage resulting from sand, gravel, ash, pumice, or other mineral matter blowing on to the vehicle.
Loss or damage caused by stone damage from the road or other vehicles. Stone damage relates to the event where small rocks or gravel shoot into a car and cause damage to the vehicle’s surface.
Loss or damage caused due to material defects, design defects, construction defects, repair defects, or malfunction of the vehicle.
Loss or damage caused be the wrong use of or non-certified charging equipment, fuel, lube, oil, or other liquids.
Impact to the undercarriage, motor or electrical equipment, tyres, or rims that do not inhibit the use of the vehicle.
Damage or theft of the vehicle’s added features.
Loss, damage, or wear and tear of the vehicle or individual parts caused by use.
Loss or damage to trailers or other machinery or equipment that has been attached to the vehicle.
Loss or damage to the undercarriage when driving on mountain roads.
Loss or damage caused by transport of goods unless the damage is the result of a traffic accident.
Are There Any Restrictions or Precautionary Rules?
The vehicle owner is responsible for the deductible selected at the start of the insurance period.
The vehicle must be securely locked, and keys stored in a safe place inaccessible to unauthorized individuals.
The driver must be physically fit to operate a vehicle.
The vehicle must be kept in a legally compliant condition.
The driver must be qualified and hold the appropriate driving license.
The vehicle must not be used when official warnings have been issued against driving or when wind speeds are officially recorded above 24 m/s. The vehicle must also be stored in such a way that there is no risk of it being blown away.
Where Is The Insurance Valid?
The insurance is valid in Iceland. It is also valid in EEA member states, the United Kingdom, and Switzerland for up to 90 days from the vehicle’s departure from Iceland. The insurance also covers the vehicle during transport between countries by first-class shipping vessel, provided the policy is an annual insurance contract.
What Are The Insured's Obligations?
If the use of the vehicle changes or is incorrectly registered on the insurance certificate, the insurer must be notified as soon as the policyholder becomes aware of the change. Failure to do so may limit the insurer’s liability.
Following an insurable event, the insured must take appropriate measures to limit the damage — such as having the vehicle inspected by a professional, responding to warning lights, switching off the engine, or moving the vehicle to a safe location.
When and how is the insurance paid for?
The insurance premium must be paid on the due date. Upon renewal, the annual premium is adjusted in accordance with changes in the index from the base index of the agreement. Vörður sends payment claims monthly to online banking services, or annually if the policyholder prefers to pay the premium in a single installment. It is possible to change the payment method via Vörður's online service, “My Pages.” There, policyholders can also choose to pay premiums using a credit card.
When Does Insurance Coverage Begin and How Does It End?
Insurance contracts generally remain valid for 12 months from the date the offer is accepted and the insurance is issued. Premiums are based on the annual rate. If the policy is not terminated during that period, it is automatically renewed.
How is the insurance terminated?
The insurance can be terminated at any time during the insurance period.