Iceland Travel Insurance: Plans & Prices
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Key Takeaways
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Iceland is widely considered one of the safest countries in the world for travelers, but unpredictable weather conditions, high-risk adventure tours, and volcanic activity can result in costly disruptions if you are uninsured.
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Our data shows travelers spend an average of $8,862 when traveling to Iceland, which is high enough to warrant Trip Cancellation coverage to protect non-refundable travel expenses.
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Iceland travel insurance policies cost $403 on average, with a typical trip length of 12 days. Most travelers spend roughly $34 per day on coverage when visiting Iceland.
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U.S. health insurance is not accepted in Iceland, and many medical facilities require payment in full before discharge.
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Squaremouth analysis shows that Tin Leg, Travel Insured International, and IMG offer the top-selling travel insurance plans among Squaremouth customers visiting Iceland.
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Try our online travel insurance comparison tool to get quotes from multiple providers at once. For personal assistance finding Iceland coverage, call our award-winning agents at 1-800-240-0369.
Our Top Recommended Iceland Travel Insurance Plans
Over the last 12 months, the top three travel insurance plans purchased by travelers with upcoming trips to Iceland on Squaremouth were:
- 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.
- 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.
Is Travel Insurance Required to Visit Iceland?
No, U.S. citizens are not legally required to provide proof of travel insurance to enter Iceland for short trips under 90 days.
However, getting coverage in place before your departure is strongly encouraged by the governing bodies and travel experts.
For example, the U.S. Embassy in Iceland suggests buying a policy with strong protection for medical evacuations, noting that medical transportation on the island can cost over $50,000 depending on your location and condition.
As an adventure destination, Iceland is also home to unique travel and environmental risks that you must account for before departing for your trip. From a small hiking injury to a widespread active volcanic eruption, travel insurance helps minimize the financial impact of disruptions that could derail your trip or impact your health.
For these reasons, 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.
Do Americans Need a Schengen Visa to Visit Iceland?
While Iceland is in the Schengen Area, Americans do not need a Schengen visa for short trips, thanks to an existing agreement between the United States and the Schengen countries. Under this agreement, visitors from the United States can visit Iceland for up to 90 days without a visa.
This also means that Schengen travel insurance requirements do not apply to Americans traveling to Iceland unless you plan to stay for over 90-days. If you plan on visiting Iceland for longer than 90 days, you will be required to apply for a long-stay visa or residence permit, which does require travel insurance.
What Should My Iceland Travel Insurance Plan Cover?
Iceland is like no other destination on earth, so it’s important to find a travel insurance policy that addresses the unique challenges that come with visiting the island. We recommend finding a plan that covers the following situations:
Medical Emergencies
Most travel insurance plans include Emergency Medical coverage, which can cover the cost of unexpected hospital stays, doctor visits, and other expenses. Look for plans that offer at least $100,000 in medical protection. Some providers can also arrange direct payment to medical facilities on your behalf.
Iceland is known for its quality medical facilities and excellent universal healthcare system, but as a tourist, you’ll pay full price out of pocket unless you have travel insurance. Non-residents are also required to pay in full upon discharge, which can amount to thousands of dollars in out-of-pocket expenses if you’re not properly covered.
Here’s a quick breakdown of medical costs in Iceland, as reported by the Icelandic Directorate of Health:
| Service | Estimated Cost |
|---|---|
| Doctor visit | $15,000-25,000 ISK ($110-180 USD) |
| Emergency room visit | 50,000-70,000 ISK ($365-510 USD) |
| Hospitalization (per day) | 100,000-150,000 ISK ($730-1,095 USD) |
| Emergency surgery | 500,000-1,000,000 ISK ($3,650-7,300 USD) |
| Ambulance | 50,000-80,000 ISK ($365-585 USD) |
Medical Evacuations
One of the most important benefits to consider is Medical Evacuation. This coverage will reimburse you if you need to be medically transported to another medical facility after a severe medical emergency to receive the treatment you need. Given the remote nature of Iceland travel, we recommend plans with at least $250,000 in Medical Evacuation coverage.
According to Medical Air Service, an air ambulance service with operations in Iceland, the cost of a medical evacuation in Iceland is heavily dependent on your location. For example, getting seriously injured on a remote stretch of the Ring Road may lead to higher evacuation expenses compared to getting injured just outside of Reykjavík.
Trip Cancellations
Iceland is one of Europe’s most expensive destinations, with most trips involving a significant amount of upfront costs. Trip Cancellation works by reimbursing your prepaid, non-refundable trip costs if you’re forced to cancel your trip for a covered reason, such as an unexpected illness, death in the family, inclement weather, or natural disaster.
Many travelers visiting Iceland choose to insure their prepaid flights, hotels, tours, and excursion expenses, giving them strong financial protection if their plans change at the last minute.
“Our data shows that the average trip to Iceland includes over $8,800 in prepaid, non-refundable trip costs. This includes prebooked airfare, hotels, tours, rental cars, and excursions. The more you plan to spend on your trip, the more you stand to lose if your trip is cancelled. Trip Cancellation is an important benefit when dealing with high-cost destinations like Iceland.”
Adventure Sports & Activities
Iceland is a nonstop adventure hub. Driving around the island, you will encounter unique experiences like glacier hiking, horseback riding on lava fields, ice cave tours, whale watching, and more. However, many of these high-risk activities are excluded from standard travel insurance plans.
If, like most Iceland visitors, you’re planning excursions while touring the diverse island, it’s essential to find a policy that includes the Sports & Activities benefit. You can also use our Adventure Sports page to find coverage for specific activities.
Extreme Weather
Iceland’s unpredictable climate is driven by its North Atlantic location, rapid atmospheric changes, and rugged mountain terrain. Weather-related delays, cancellations, and trip interruptions are a risk for anyone flying into Reykjavik.
Your Icelandic travel insurance plan should include Hurricane & Weather coverage, which covers a wide range of trip disruptions brought on by unexpected weather-related events.
Flight Delays
Icelandair currently offers nonstop flights from 15 U.S. airports to Iceland. Despite that, many Americans’ itineraries involve layovers or long commutes to the departure airport. The Trip Delay benefit can reimburse you for meal and accommodation expenses if your trip to or from Keflavík International Airport is significantly delayed due to a covered reason.
Iceland-Specific Safety Risks to Consider
Volcanic Eruptions
According to Earth Magazine, Iceland has 33 active volcanic systems, more than almost anywhere in the world. The 2010 Eyjafjallajökull eruption cancelled over 100,000 flights across Europe, and experts expect the island to experience a major eruption every 4 to 5 years. Fortunately, volcanic eruptions can be covered by travel insurance, assuming you purchase your policy before the eruption occurs.
Sneaker Waves
Iceland’s famous black sand beaches are as dangerous as they are breathtaking. Reynisfjara Beach, located along the South Coast of Iceland, is one of the island’s top tourist destinations for its unique rock formations. However, Visit Iceland reveals that this popular photo spot is home to some of the world’s most powerful waves, with numerous instances of tourists being swept away at sea for standing too close to the water.
“When I visited Iceland in 2025, I had heard stories about Reynisfjara Beach and the infamous sneaker waves. As expected, there are warning signs plastered all over the parking lots and various beach entrances. Despite this, there were still people playing too close to the water, seemingly unaware of the sheer power and danger of the water. One slip-up or misjudged wave can be disastrous, so it’s best to stay far away and admire the waves from a safe distance.”
Trail Hazards
According to AllTrails, there are over 750 designated trails in Iceland. However, the Icelandic Environment Agency notes that there are very few warning signs posted on these trails, even those with exposed cliffs or steep terrain. Always tread carefully and triple-check weather conditions before hiking.
F Roads
Many of Iceland’s adventures, especially those in more remote parts of the country, involve F Roads. These are rugged, unpaved mountain tracks that legally require a 4×4 vehicle. Driving on these roads is risky, even with the proper vehicle, so take it slow and avoid them during icy conditions. If you plan on renting a car, consider adding Rental Car Damage protection to your policy to avoid out-of-pocket expenses if you’re involved in an accident or run into trouble navigating the F Roads.
Extreme Wind
One of the most overlooked aspects of Iceland’s climate is the wind. Icelandic wind can be dangerous to fly, drive, and walk in, and can pick up at any moment. Always check the local forecast before setting off on your adventure.
What Are the Best Travel Insurance Plans for Iceland?
Best for Medical Coverage
Medical / Med Evac Coverage
$500,000 / $500,000Cancellation / Interruption Limits
100% / 150% of trip cost
The most popular option among our customers thanks to its well-rounded coverage, selected by 21% of Squaremouth users visiting Iceland
Provides $500,000 in reimbursement for unexpected medical expenses while in Iceland, including hospital stays, doctor’s visits, and ambulance rides
Covers a variety of high-risk adventure sports, including popular Icelandic activities like glacier walking, whale watching, and hiking
How Much Does Iceland Travel Insurance Cost?
We examined our sales data from thousands of travelers who purchased travel insurance for Iceland over the last 12 months. The average traveler spent $403 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.
Below are two sample costs for a 35-year-old traveler purchasing our recommended best travel insurance plans for a 10-day, $6,000 trip to Iceland:
Comprehensive Travel Insurance Plans Example:
| Provider | Plan Name | Premium | Premium Per Day |
|---|---|---|---|
| Tin Leg | Gold | $302 | $30 |
| Travel Insured International | FlexiPAX | $215 | $22 |
| IMG | iTravelInsured Choice | $162/day | $16 |
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?
It depends on the policy. While many travel insurance providers cover trip disruptions caused by weather, not all include coverage specific to volcanic eruptions and other unique Iceland weather events. Always review your policy documentation and don’t hesitate to contact your provider directly to confirm coverage.
Do I Need a Schengen Visa to Visit Iceland?
A Schengen Visa is a short-stay visa allowing you to travel freely through the Schengen countries, including Iceland. U.S. citizens don’t need a Schengen visa for short visits, but do need a long-term visa if you’re planning on staying past 90 days. Always check updated travel requirements before departure.
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 and routinely ranks as the world’s most peaceful country on the annual Global Peace Index. The Institute for Economics & Peace has also ranked Iceland #1 on the Global Peace Index for 15 consecutive years.
What Happens if I Get Injured While Glacier Hiking?
If your plan includes adventure sports coverage (or if glacier hiking is within your plan’s covered activities list), your Emergency Medical coverage would apply to treatment costs, and your Medical Evacuation coverage would apply to any medical transport that’s needed. If the activity isn’t covered, expect to pay out of pocket. You should always confirm your specific activities are covered before buying.