Main menu

Pages

Edit post

Travel Insurance in Iceland: Protecting Your Journey to the Land of Fire and Ice

kimo

Iceland, the land of glaciers, volcanoes, geysers, and hot springs, has become one of the most sought-after travel destinations in Europe. Known for its dramatic landscapes, unique wildlife, and vibrant culture, Iceland offers a once-in-a-lifetime experience for travelers. From exploring the Golden Circle to bathing in the Blue Lagoon, there's no shortage of awe-inspiring sights and adventures.

However, like any travel destination, unexpected situations can arise during your trip. Whether it’s a medical emergency, a canceled flight, or a lost piece of luggage, having travel insurance for your trip to Iceland is essential. In this article, we explore why travel insurance is so important when visiting Iceland, what it typically covers, and how to choose the best policy for your needs.

Why You Need Travel Insurance for Iceland

While Iceland is considered a safe destination, the unique environment and weather conditions can pose risks for travelers. Travel insurance is essential to ensure that you are protected during your journey. Here's why:

1. Healthcare and Medical Emergencies

Although Iceland has an excellent healthcare system, visitors from outside the EU/EEA will need to pay for medical treatment unless they have travel insurance. If you’re from the EU, you can access healthcare with the European Health Insurance Card (EHIC), but this doesn’t cover everything, especially for more serious issues or emergencies.

In Iceland, medical treatment can be costly. For example:

  • Doctor visit: ISK 5,000–ISK 10,000

  • Emergency room visit: ISK 15,000–ISK 30,000

  • Ambulance services: ISK 10,000–ISK 50,000

  • Hospital stay: ISK 25,000–ISK 100,000 per day

For travelers from outside the EU, medical expenses can be substantial without insurance. A comprehensive travel insurance policy can cover emergency medical treatment, hospitalization, and repatriation if necessary.

2. Outdoor Activities and Adventure Sports

Iceland is a haven for adventure seekers. Travelers often engage in activities such as:

  • Hiking across volcanic landscapes and glaciers

  • Snowmobiling on glaciers

  • Whale watching and diving

  • Glacier hiking and exploring ice caves

  • Bungee jumping and rafting

These activities, while thrilling, come with a certain degree of risk. Travel insurance that covers adventure sports or high-risk activities is crucial if you plan to participate in these types of excursions. This coverage will typically include medical treatment, evacuation, or transportation in case of injury.

3. Trip Cancellations and Interruptions

Unforeseen events, such as illness, a family emergency, or severe weather, may disrupt or even cancel your trip. While Iceland’s weather is part of its charm, it can also be unpredictable. Severe storms, volcanic eruptions, and road closures are not uncommon, especially in remote areas.

In the event of trip cancellations or interruptions, travel insurance can help you recover non-refundable costs for flights, hotels, and tours. If your trip is cut short due to an emergency, you can also be reimbursed for additional expenses such as flight changes or accommodations.

4. Loss or Theft of Luggage and Personal Belongings

As a traveler, you may be carrying valuables such as electronics, cameras, and personal documents. Unfortunately, things can go wrong—luggage can be lost, stolen, or damaged during your trip. Iceland's remote nature means that you may need to travel long distances by bus, plane, or car, increasing the risk of losing your belongings.

Travel insurance helps you recover costs associated with the loss, theft, or damage of your luggage or personal items. Coverage often includes lost, stolen, or damaged baggage and will reimburse you for replacing your belongings.

Is Travel Insurance Mandatory for Iceland?

For most travelers to Iceland, travel insurance is not mandatory. However, there are certain circumstances where it may be required or highly recommended:

1. Schengen Visa Requirements

If you’re from a country outside the Schengen Area, you will need a Schengen visa to enter Iceland. As part of the visa application process, travel insurance is mandatory. The insurance must cover:

  • Medical emergency expenses with a minimum coverage of €30,000

  • Repatriation and evacuation in case of serious illness or injury

  • Valid for the entire duration of your stay in Iceland and other Schengen countries

Without the proper insurance, your visa application may be rejected. It's crucial to ensure that the insurance meets the Schengen requirements before applying.

2. Non-Schengen Visa Travelers

For travelers from countries that don’t require a visa to visit Iceland (e.g., the United States, Canada, Australia), travel insurance is not compulsory but is still strongly recommended. While Iceland is a safe destination, unexpected issues like accidents, cancellations, or weather disruptions can occur. Having insurance in place offers peace of mind.

Healthcare in Iceland for Tourists

Healthcare in Iceland is of high quality, but as mentioned earlier, travelers from non-EU/EEA countries will need to pay for medical services out of pocket. While visitors from the EU can access healthcare through the EHIC, the card doesn’t cover everything, such as repatriation or medical evacuation.

Here’s an overview of some typical medical costs for tourists in Iceland:

  • Doctor visit: ISK 5,000–ISK 10,000

  • Emergency room visit: ISK 15,000–ISK 30,000

  • Ambulance ride: ISK 10,000–ISK 50,000

  • Hospital stay: ISK 25,000–ISK 100,000 per day

Travel insurance is highly recommended to cover these costs, as even a minor injury can lead to significant medical expenses without the proper coverage.

What Does Travel Insurance Cover in Iceland?

A comprehensive travel insurance policy for Iceland should cover various potential risks. Here’s a breakdown of the key coverage areas:

1. Emergency Medical Coverage

This is the most important aspect of travel insurance for Iceland. It typically includes:

  • Medical treatment for illness or injury

  • Hospitalization and emergency surgery

  • Repatriation to your home country if necessary

  • Emergency dental care and prescriptions

2. Trip Cancellation and Interruption

If you need to cancel your trip due to unexpected circumstances (such as illness, family emergencies, or extreme weather), travel insurance will reimburse you for any non-refundable expenses, including:

  • Flight cancellations

  • Hotel reservations

  • Tour bookings and other prepaid expenses

If your trip is interrupted and you need to return home early, this coverage can also reimburse the costs associated with early flight changes or additional accommodation.

3. Baggage and Personal Belongings

This coverage reimburses you if your luggage is lost, stolen, or damaged. If your baggage is delayed, insurance can cover the cost of purchasing essential items like clothing and toiletries. You’re also covered if your personal items, such as electronics or cameras, are lost or damaged.

4. Adventure Sports Coverage

For travelers engaging in adventure sports like hiking, snowmobiling, or glacier walking, it’s crucial to have specific coverage for high-risk activities. This includes:

  • Accident coverage for injuries sustained during these activities

  • Medical evacuation if you’re injured in a remote area

  • Search and rescue costs if you get lost or stranded

5. Personal Liability

Personal liability coverage is important in case you cause damage to property or injury to another person. For example, if you accidentally damage a hotel room or injure someone while participating in an activity, this coverage helps cover the legal fees and compensation.

6. Accidental Death or Dismemberment

This coverage provides a lump sum in the event of death or severe injury that results in permanent disability.

COVID-19 and Travel Insurance in Iceland

Due to the ongoing global pandemic, travelers to Iceland should ensure their travel insurance covers COVID-19-related risks. Many insurance companies offer COVID-19 coverage, which can include:

  • Trip cancellation due to COVID-19-related issues

  • Medical coverage for COVID-19 treatment

  • Quarantine accommodation costs if you’re required to self-isolate

  • Emergency evacuation if you need to return home early due to the pandemic

Be sure to check the specifics of your policy, as some may have exclusions or restrictions related to COVID-19.

Travel Insurance Providers for Iceland

Several reliable insurance providers offer coverage for trips to Iceland. Some popular providers include:

  • AXA Travel Insurance

  • Allianz Global Assistance

  • World Nomads

  • Travelex Insurance Services

  • Generali Global Assistance

When selecting a policy, make sure to compare the benefits, coverage limits, and premiums to find the best fit for your needs.

Cost of Travel Insurance for Iceland

The cost of travel insurance will vary based on factors such as the length of your trip, your age, and the level of coverage you need. On average, the cost for a 7 to 10-day trip to Iceland is:

  • Basic coverage: €20–€50

  • Standard coverage: €50–€100

  • Premium coverage: €100–€200

To get the best deal, it’s advisable to shop around and use comparison tools to find the right coverage at an affordable price.

Conclusion

Iceland is a beautiful and unique destination, offering a diverse range of experiences for travelers. While it is generally a safe country to visit, unexpected situations can arise, and travel insurance can protect you from financial risks. From medical emergencies to trip cancellations and lost luggage, a good travel insurance policy will provide peace of mind, ensuring you can fully enjoy your Icelandic adventure without worry.

Whether you’re heading to Iceland for adventure sports or simply to explore its natural wonders, make sure you’re covered with the right insurance policy. With the right coverage, you’ll be free to explore the land of fire and ice with confidence.

table of contents title