Thrifty Iceland Car Rental Coverages

The Renter may pay an own-risk fee (CDW and SCDW) to reduce their financial liability in case of damage. The amount of the own-risk fee follows the Thrifty pricelist. Even with this coverage, the Renter is always responsible for paying a minimum amount if the rental vehicle is damaged while under their care. This minimum is set according to the pricelist.

Each own-risk applies to a single incident only. If multiple damages occur at different times, each incident will require its own CDW or SCDW own-risk payment.

• (CDW) Collision Damage Waiver – Included in the online rate

  This option reduces your financial liability for damage to the Thrifty vehicle, including its parts and accessories, except for the windshield, glass, underbody, tires, theft, attempted theft, or vandalism — provided the vehicle is used in accordance with the terms and conditions of the rental agreement.

  If CDW is declined, you will be responsible for damages up to the full value of the vehicle.

  CDW Non-Waivable Excess
  All rentals are subject to a non-waivable excess (N.W.), which varies depending on the vehicle group. This is the amount you remain responsible for in the event of damage to the Thrifty vehicle during the rental. The N.W. amount is listed in our current pricelist.

• (SCDW) Super Collision Damage Waiver

  Purchasing SCDW in addition to CDW further reduces the non-waivable amount under CDW coverage. Please note that SCDW does not lower the non-waivable excess for any other protection beyond CDW.

  The non-waivable (N.W.) amount is determined according to Thrifty’s current pricelist.

• (TP) Theft Protection

  This option reduces your financial liability in the event of loss or theft of the Thrifty vehicle, including its parts and accessories, provided the vehicle is used in accordance with the terms and conditions of the rental agreement. If TP is declined, you will be responsible for the repair or replacement costs of the Thrifty vehicle following theft, attempted theft, or vandalism, up to the full value of the vehicle.

  TP Non-Waivable Excess (N.W.)
  All rentals are subject to a non-waivable excess fee (N.W.), which varies depending on the vehicle rented. This is the amount you remain responsible for in case of loss or theft of the Thrifty vehicle during your rental. The N.W. amount is listed in our current pricelist.

• (WSP or WP) Windshield Protection

  This option removes the Renter’s financial liability for damage caused by gravel to the front windshield and headlights.
  Please note that this coverage does not apply to damage resulting from sand or ash storms.

• (SAAP) Sand and Ash Protection

  This option reduces your financial liability for damage caused by ash, sand, or other earth materials being blown against the vehicle. Without this protection, the renter is fully responsible for all related costs, which may include replacing windows, headlights, and repainting the vehicle. SAAP can be purchased directly during the booking process on our website or at the rental counter.

  SAAP Non-Waivable Excess (N.W.)
  All rentals are subject to a non-waivable excess (N.W.), which varies depending on the vehicle group. The exact amount is listed in Thrifty’s current pricelist.

• List of Damages That Aren’t Covered

  Own-Risk Fee (CDW and SCDW) – Exclusions

  Payment of an own-risk fee (CDW or SCDW) does not remove the Renter’s financial liability for damage to the Thrifty vehicle in the following cases:

  a. Damage caused intentionally or through gross negligence by the driver.
  b. Damage resulting from the driver being under the influence of alcohol, drugs, or otherwise unfit to drive safely.
  c. Damage caused while racing or test-driving.
  d. Damage resulting from war, revolution, riots, or civil unrest.
  e. Damage caused by animals.
  f. Burns or holes in seats, carpets, or mats.
  g. Damage limited to wheels, tires, suspension, batteries, glass, radio equipment, or theft of individual parts and related damage.
  h. Damage caused by rough roads (e.g., transmission, drive shaft, oil pan, engine, or chassis damage), including from rocks, gravel, or road edges. This also covers damage from loose rocks hitting the vehicle, radiator, or underbody.
  i. Damage from driving in prohibited areas such as paths, tracks, snowbanks, ice, unbridged rivers/streams, beaches, tidal areas, or other off-road terrain.
  j. Damage to passenger vehicles driven on F-roads or on restricted highland roads such as Kjölur (Route 35), Kaldidalur (Route 550), or Landmannalaugar (Route 208).
  k. Damage caused by sand, gravel, ash, pumice, or other earth materials being blown against the vehicle.
  l. Damage from seawater if the vehicle is shipped by sea.
  m. Any loss to the Lessor if the vehicle is stolen.
  n. Water damage to the vehicle.
  o. Any use of the vehicle that violates Icelandic law or the terms of the rental agreement.

• Credit Card Insurance

  If the Renter chooses to rely on their credit card for coverage, we strongly recommend that they fully review and understand the terms and conditions of the protection offered by their credit card company before declining any of Thrifty’s optional services.

• Damage Car Transport and Replacement

  The Renter is always responsible for covering the cost of transporting a damaged vehicle. This cost is calculated per kilometre, with a minimum fee as stated in Thrifty’s current pricelist. Please note that replacement of a damaged vehicle is subject to availability.

Our Available Coverage Packages

*The undercarriage, damage by river or water crossing, and off-road driving are NOT covered by any coverage package. There is no available coverage package to cover such damages.

Small cars, Family cars, Crossover and Mid-sized SUV View our cars

Electric, Large SUV, AWD and Minivans View our cars

Recommended Car Rental Coverage Package in Iceland

When renting a car in Iceland, choosing zero excess coverage gives you peace of mind on the road. Driving conditions here can be unpredictable, with gravel roads, strong winds, and sudden weather changes that can easily cause damage to a vehicle. With zero excess coverage, you won’t have to worry about paying a hefty deductible if something happens — whether it’s a chipped windshield, scratches from loose gravel, or dents caused by harsh conditions. It means you can fully enjoy your Iceland road trip, knowing that unexpected repair costs are taken care of, and your adventure won’t come with unwanted financial surprises. Please note that the undercarriage, damage caused by river or water crossing, and off-road driving are not covered by any insurance package — there is currently no protection available for such damages.

Thrifty Car Rental ZERO Excess Coverage Package*

At Thrifty Iceland, we are committed to making your self-drive trip in Iceland as stress-free as possible. That’s why we’ve introduced our new MAX Coverage Package, which brings together all the coverage options we offer in one complete bundle. This package includes:

• CDW
• SCDW
• TPL (also known as PAI)
• TP
• WSP (also known as WP)
• Windows & Glass / Side windows / Headlights protection
• Gravel Protection (GP)
• Sand and Ash Protection (SAAP)
• Tires and Wheels

With this package, you benefit from ZERO excess on any damages covered by the protections listed above, giving you full peace of mind while exploring Iceland by car.

_{* The underbody of the vehicle, damages due to river or water crossing and off-road driving are NOT covered at any time}

*_{Towing and roadside assistance fees (and cost) are NOT included in any car insurance and car protection (coverage) package. Renters are fully responsible for the towing and/or roadside assistance cost.}