Iceland Travel Insurance Requirements
Last updated: 04/18/2025
Key Takeaways
- Most U.S. health insurance is not accepted in Iceland, and medical care can be costly and difficult to access in remote areas.
- Travel insurance policies for Iceland can cost as low as $4 per day for basic medical coverage, making them affordable investments.
- We recommend getting custom quotes for your trip with our online travel insurance comparison tool. The tool lets you compare plans and prices from over 20 travel insurance companies.
Our Top Recommended Iceland Travel Insurance Plans
- Travel Insured International – FlexiPAX because it offers strong all-around coverage with customizable coverage options and high medical benefits that meet our international coverage recommendations.
- IMG – iTravelInsured Choice because it offers extensive medical coverage for international travel and comprehensive cancellation coverage.
- Tin Leg – Gold because it offers high medical limits, cancellation coverage, and protection for 250+ activities, making it a top-tier plan for adventurous travelers.
Do I Need Travel Insurance to Visit Iceland?
Although travel insurance for Iceland is not mandatory for U.S. visitors, we highly recommend it. Traditional US health insurance policies, including medical and Medicaid, don’t usually work abroad. This, combined with the expensive cost of healthcare in Iceland, makes paying out of pocket unaffordable for many travelers.
We recommend opting for medical travel insurance at a minimum when visiting Iceland; however, a comprehensive plan may be a better fit due to the unique risks travelers face in Iceland.
Reasons You May Need Travel Insurance for Iceland
Risk of Storms & Natural Disasters
Due to its remote location in the Atlantic, Iceland’s weather conditions are unpredictable. One moment, you’re enjoying the Northern Lights; the next, a storm grounds your flight. Sudden storms, volcanic eruptions, and high winds can delay flights, disrupt travel, and cause unexpected trip cancellations.
✅ Comprehensive travel insurance covers travel delays, trip interruptions, and lodging costs caused by some natural disasters and inclement weather.
Expensive Medical Care
From glacier hiking and road trips in rental cars to discovering hidden waterfalls, Iceland is an adventure lover’s paradise, but a slip. In contrast, hiking or an injury from exploring rural hot springs could result in sky-high medical expenses. Iceland has world-class healthcare, but your US health insurance won’t protect you while you’re abroad. Paying out-of-pocket medical expenses can add up quickly, especially if you need specialized treatment due to a pre-existing medical condition.
✅ Travel medical insurance can cover you for high-risk activities and pay for all your medical expenses, hospital stays, and repatriation to get treated in the US if necessary.
High Trip Costs
Due to its remote location, trips to Iceland aren’t cheap, averaging $7,600 in 2025. If your trip is delayed or canceled, you could lose thousands of dollars on missed flights, hotels, and excursions.
✅ Trip Cancellation insurance can reimburse you for prepaid expenses if you need to cancel or delay your trip for a covered reason.
Risk of Baggage Loss & Delay
There are few direct flights to Iceland from the U.S., meaning most travelers must take at least two flights before arriving in Reykjavik. This increases the likelihood of travel disruptions and lost or delayed baggage. Imagine stepping off the plane in Reykjavik, ready to explore the Land of Fire and Ice—only to discover your bags are still in New York. Whether traveling to Reykjavik or beyond, baggage issues happen.
✅ Travel insurance can cover you for lost luggage or delayed baggage, and provide a stipend for buying essential items until you receive your bags.
More Details on the Best Travel Insurance for Iceland
Travel Insured International
- Recommended Plan: FlexiPAX
- Emergency Medical: $100,000
- Medical Evacuation: $500,000
- Trip Cancellation: 100% of trip costs
- Great for add-ons and coverage upgrades
IMG
- Recommended Plan: iTravelInsured Choice
- Emergency Medical: $100,000
- Medical Evacuation: $500,000
- Trip Cancellation: 100% of trip costs
- Reliable coverage for pre-existing conditions
Tin Leg
- Recommended Plan: Gold
- Emergency Medical: $500,000
- Medical Evacuation: $500,000
- Trip Cancellation: 100% of trip costs
- Covers a wide-range of adventure sports & activities
How Much Does Iceland Travel Insurance Cost?
We examined data from 7,000+ travelers who purchased travel insurance for Iceland through our marketplace over the last 12 months. The average traveler spent $397 on travel insurance for a 12-day trip. On average, travel insurance premiums range from 5% to 10% of the total trip cost.
That said, the cost of travel insurance for a trip to Iceland varies based on various factors, such as the number of travelers, their ages, the trip duration, and whether any adventures, high-risk activities, or sporting activities are planned.
Quote Iceland Travel Insurance
Travel Tips for Finding the Best Travel Insurance for Iceland
Finding the right travel insurance plan for Iceland doesn’t have to be complicated. Here are a few quick tips to help you select the most appropriate travel insurance coverage for your trip.
Use a Comparison Tool
As the nation’s largest travel insurance marketplace, Squaremouth lets travelers compare more policies and providers than any other site. Whether planning a relaxing soak in the Blue Lagoon or an epic road trip around the Ring Road, comparing travel insurance plans ensures you find the best coverage for your Iceland adventure—at the best price.
Read the Fine Print and Policy Exclusions
Since each provider and policy differ, check for exclusions related to age limits, pre-existing conditions, adventure sports, and severe weather events related to your chosen plans.
Consider Iceland’s Unique Travel Risks
Iceland is known for its breathtaking landscapes and low crime rate—but nature can be unpredictable. Weather-related disruptions are common year-round, from sudden snowstorms to volcanic activity and challenging road conditions. If you’re traveling in winter, road closures and flight cancellations are a real possibility. In summer, remote hiking and outdoor excursions can still carry injury risks.
Travelers should look for policies with high medical coverage limits, trip interruption benefits, and emergency evacuation coverage—especially if venturing outside Reykjavik or driving the rural stretches of the island.
Determine How Much Coverage You Need
We recommend at least $100,000 in Emergency Medical coverage and $250,000 in Medical Evacuation coverage for Iceland. Iceland’s healthcare system is modern and accessible, but non-residents must pay for services out-of-pocket unless they have travel insurance. Sometimes, your provider may pay the hospital directly, saving you from significant upfront medical expenses during an emergency.
For more information on health and safety during your trip, refer to the U.S. Embassy in Iceland travel page.
Is Travel Insurance Worth It for Iceland?
Yes, it is worth it to buy travel insurance for your trip to Iceland. Iceland is breathtaking and adventurous, but it poses numerous risks for travelers. For a small cost, travel insurance ensures you’re covered for medical emergencies, trip cancellations, delays, and more. This is a small price compared to the ample benefits you receive, and the peace of mind travel insurance brings is priceless.
FAQ: Iceland Travel Insurance
Does Travel Insurance Cover Natural Disasters in Iceland?
Many travel insurance providers cover trip interruptions due to volcanic eruptions and extreme weather.
Do I Need a Schengen Visa to Visit Iceland?
A Schengen Visa is a short-stay visa allowing you to travel to 26 Schengen countries, including Iceland. U.S. citizens don’t need a Schengen visa for short visits but should check updated travel requirements.
Does Travel Insurance Cover Rental Cars in Iceland?
Yes, some plans include rental car coverage but check for exclusions like collision damage waivers. A collision damage waiver covers the cost of damage to a rental car, but it’s important to note that it may not cover all types of damage or all costs.
Is Iceland Safe?
Yes! Iceland has low crime rates, making it one of the safest travel destinations. This safety ensures you can fully enjoy your trip without worrying about security issues.
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