If you have ever stood at a rental counter in Iceland wondering which insurance you actually need, you are not alone. Terms and conditions, abbreviations that look like food you want to avoid (CDW, SAAP, GP?), Iceland being a very particular country with volcanic sand, sudden winds, gravel roads and a long menu of add-ons, choosing cover can feel like a pop quiz you never revised for. That is exactly the problem Zero set out to fix.

At Zero Car Rental, the price you see already includes full insurance with zero excess on the key Iceland-specific risks and roadside assistance with no deductible. You do not have to pick a bundle, resist a hard sell or wonder which damage is excluded. It is already handled in your rate. You can read the official wording on our own pages here: our Insurance Policy, the FAQs and the Terms and Conditions. Those pages state that all insurances are included, zero excess is included, and the Roadside Assistance Waiver is included as well, with no deposit held on your card during the rental. What you see is what you pay.

Below, we explain exactly what “full insurance” means in Iceland, how other providers structure it, the common pitfalls that travellers report, and why Zero’s already-included package is the most comprehensive and stress-free choice right now.

What “full insurance” really needs to include in Iceland

Iceland is not a typical driving environment. Local road risks make a few protections essential, so a truly complete package should cover them by default.

Collision and super collision damage waiver (CDW and SCDW). These limit your liability for collision damage. With Zero, zero excess is already built into the price, so you are not deciding between basic and “super” versions at the desk. See our FAQs for the inclusion list.

Gravel protection (GP). Windshields, headlights and paint chips from flying gravel are common even on ordinary drives. This is covered with a zero deductible..

Sand and ash protection (SAAP). Strong winds can sandblast paint and even affect engine components. SAAP exists because standard collision insurance usually does not include these events unless you add it. Zero includes SAAP with zero excess. Our FAQ spells this out; many providers sell SAAP as a bolt-on, therefore not all offers are quite the same.

Theft protection (TP) and third-party liability round out the basics and are included as standard.

Roadside assistance with no deductible. This is the missing piece in many “all-inclusive” bundles. Without a specific assistance waiver, you can still be charged for towing, tire help, recoveries from snow or sand, or key issues, even if your damage excess is zero. At Zero the Roadside Assistance Waiver is included, reducing eligible assistance charges to zero. Again, see our FAQs since this is the key differentiator between us and others.

All of the above are bundled into every Zero booking. No deposit hold. No last-minute upsell. Just pick up your keys and go.

Why this matters in Iceland: real risks that cause surprise bills

Ask any Icelander about wind. The single most common category of rental damage is often a door wrenched open by a gust. Even big rental brands publish safety leaflets warning that wind-blown doors are a very frequent cause of damage.

Sand and ash are another classic Iceland gotcha. On the South Coast and other exposed areas, storms can strip paint in minutes. Travelers and Icelandic rental guides repeatedly recommend SAAP for this reason. 

Deposits and authorizations can also sting. Many companies take a substantial hold or an upfront charge that ties up your card for days after return. Zero’s FAQs state clearly that we do not hold a deposit during your rental, which keeps your card free for fuel, hotels and tours. 

Finally, even with zero-excess damage cover, roadside assistance can remain a fee unless there is an assistance waiver. Some providers sell such a waiver as a separate product. At Zero the Roadside Assistance Waiver is included in your rate. 

For your own planning, check official travel advisories and weather before you drive. The Icelandic Search and Rescue’s site Safe Travel aggregates key safety guidance, the Icelandic Meteorological office publishes detailed wind and weather forecasts, and IRCA’s Road.is shows current road conditions. 

A fair, current comparison: Who includes what by default

A few Iceland companies advertise zero excess. The differences are what is included by default, what still requires paid add-ons, and what exclusions remain. 

Zero Car Rental. Zero excess on CDW, SCDW, GP, SAAP and TP included in the price on every booking. Roadside Assistance Waiver included by default. No deposit hold. Staff available at KEF to help with the keybox pickup, plus 24-hour phone support. Details in Insurance Policy, FAQs and T&Cs. zerocar.is+1

Blue Car Rental. A widely used local provider. Their insurance page shows that a Liability Waiver is an optional add-on that reduces your deductible to zero and includes SAAP. They also offer a separate Roadside Assistance Waiver product. Zero bundles the effect of both in the price you see, so you do not have to decide at the desk. 

Geysir. Sells a Zero Excess insurance as an upgrade and presents tiered packages on its insurances page rather than including zero excess by default. 

Europcar Iceland (Höldur). Their Premium Protection Package is the route to Zero Excess Cover, which is not part of the basic inclusion.

Hertz Iceland. Promotes a MAX coverage package that can bring self-excess to zero for covered items, while still listing exclusions such as underbody damage and water crossings. 

Iceland Car Rental. Markets “one price, no surprises” with zero excess included and no deposit, but while their package is offers zero deductible, still misses having roadside assistance included. 

The same applies to smaller companies, such as Lava Car, MyCar and beyond. 

What this means: As of today, Zero remains the only Iceland car rental company that bundles both a true zero-excess damage package and a roadside assistance fee waiver in the displayed price on every booking, while also not holding a deposit. Competitors may match parts of that picture, but usually not all at once without extra fees. Always verify current inclusions directly on the provider’s site before you book. 

The “this feels scammy” moments travellers complain about

Not all car rentals are the same and we understand why some travellers come away upset. The pattern you will see in forum threads and advice blogs is consistent. People arrive expecting that “full insurance” is already handled, then discover at the desk that sand and ash is extra, or that roadside assistance is still a charge without a waiver, or that the damage excess only goes to zero if they buy the top bundle. There are also many stories about wind-blown doors leading to large invoices if the right cover was not selected. 

Even apart from damage, deposits can cause friction. A hefty hold or pre-authorization can tie up your card for days after return. Zero’s FAQs confirm we do not place a deposit hold. You complete online check-in, your card imprint acts as a guarantee, and you keep your credit line for your trip.

Zero’s fix is simple. We price the complete package up front, do not block a deposit on your card, and provide 24-7 assistance with the fee waiver built in, so the most common support calls do not result in a bill. You can read this directly on our FAQ page.

What exactly is included with Zero

Full protection with zero excess. CDW, SCDW, Gravel Protection and Sand and Ash Protection are included with a zero deductible, along with Theft Protection and liability. See Insurance Policy and FAQs.

Roadside Assistance Waiver. If you need help for issues like a flat, a tow, a jump start or recovery, your assistance charges are reduced to zero. Stated on our FAQ page and referenced in our T&Cs. 

No deposit. We do not hold a deposit during your rental. 

24-7 support and staffed offices. Pickup is via keybox at KEF and Reykjavík for speed and convenience, and there are staff present at the KEF office to help if you need assistance with the keybox or have questions. Support by phone is 24-7. Hours and details are listed in FAQs

One price, no counter upsells. The goal is that you arrive, grab your keys and drive, not stand through a script of “would you like to add…”. You can review all inclusions in Insurance Policy and even our reviews!

Transparency about our provider. Zero partners with local expert Blue Car Rental to operate the fleet and service. Our FAQs state this transparently, which is why our Terms and Conditions reference Blue Car Rental in several clauses. The difference is that when you book on zerocar.is, the zero excess and roadside assistance waiver are already included in the price you see. 

How to sanity-check any Iceland rental if you are shopping around

• Ask what is included by default. If zero excess, GP and SAAP are not in the base price, ask what the final per-day cost is once you add them. Verify on the provider’s insurance page, for example Geysir’s packages. 
• Confirm roadside assistance terms. Look for phrases like “Roadside Assistance Waiver” or “Assistance fees.” If it is sold separately, clarify what a tow or tire help would cost without it. 
• Read exclusions carefully. Even “zero excess” products can exclude underbody damage or water crossings. If you plan gravel, highlands or river fords, get it in writing that your route is allowed and what is covered. See Hertz’s coverage guide and good luck understanding all the different extras.z.is
• Check deposit policy. Holds vary widely and can take days to release. If you prefer no hold, choose a company that states this clearly in writing, like Zero

Booking with Zero: What the process looks like

You book online, complete the digital check-in, and arrive knowing your insurance is done. At Keflavík International Airport or in downtown Reykjavík, you pick up the keys from a 24-7 keybox. If you need assistance, there are team members at the KEF office to help during opening hours, and 24-7 phone support for anything urgent. Returns are quick because zero excess and roadside assistance are already included and there is no deposit hold. All of this is described on our pickup and dropoff information. 

For deeper planning guides, see our long-form explainer Car Rental Iceland FAQ: Zero-Excess Pricing, Self-Drive and F-Road Guide. 

The bottom line

In Iceland, what is included matters more than almost anywhere else. Wind can yank a door in a second. Sand can scour paint on a breezy day. Towing and recoveries are expensive. Many providers sell you a base price, then layer on zero-excess and roadside assistance as upgrades. Others promise “all-inclusive” but still keep assistance as an extra.

Zero takes a different path. Zero excess is standard. Roadside assistance fees are waived by default. No deposit is blocked on your card. You pick up the keys quickly at KEF or downtown Reykjavík, and there are people to help if you need them. That is why, right now, Zero offers the most complete, already-included insurance and assistance package we can verify in Iceland. If you want a rental where you do not have to think about insurance once you land, choose Zero and drive. Then use your headspace for the things that actually matter here, like which waterfall to linger at or whether tonight looks good for northern lights.