Iceland Travel Insurance: Plans & Prices
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Reviewed By Last updated: 03/26/2026
Key Takeaways
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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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Iceland travel insurance costs $382 on average, with a typical trip length of 12 days. You can expect to spend roughly $32 per day on coverage for your upcoming Iceland trip.
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Iceland is widely considered one of the safest countries in the world for travelers, but unpredictable weather conditions and volcanic activity can result in costly trip disruptions.
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Travelers spend over $8,500, on average, when traveling to Iceland. When trips involve high upfront costs, it’s important to protect your travel expenses with Trip Cancellation coverage.
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U.S. health insurance is not accepted in Iceland, and many medical facilities require payment in full before discharge. Because hospital bills can be very costly, we recommend choosing plans with strong Emergency Medical coverage.
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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.
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 high 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 a 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
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, accounting for more than 21% of all policy sales for trips to 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
Great for Cancellation Coverage
Medical / Med Evac Coverage
$100,000 / $500,000Cancellation / Interruption Limits
100% / 150% of trip cost
Covers up to $100,000 in prepaid travel expenses, protecting your airfare, lodging, and other essential trip costs in the event your trip is cancelled due to inclement weather or other covered reasons
Offers optional Cancel For Any Reason (CFAR) and Interruption For Any Reason (IFAR) coverage to travelers who want additional peace of mind and flexibility for their upcoming Iceland travel plans
Features optional Rental Car Damage protection, reimbursing you for theft, vandalism, or damage to your rental car throughout your trip to Iceland
Provides significant cost savings to families traveling with young children by providing free coverage for kids under the age of 18
Best Option for Evacuation Coverage
Medical / Med Evac Coverage
$100,000 / $500,000Cancellation / Interruption Limits
100% / 150% of trip cost
Provides up to $500,000 in reimbursement for medical evacuations, which can be essential if you plan on visiting remote areas of Iceland where medical access is limited
Includes $100,000 in Non-Medical Evacuation coverage, helping cover the cost of emergency transportation if you need to evacuate Iceland due to volcanic activity or other covered events
Offers $1,000 per person in Trip Delay coverage, reimbursing you for meals and lodging if your flight to or from Reykjavík is significantly delayed due to inclement weather, mechanical issues, or other covered reasons
Great for travelers concerned about pre-existing condition flare-ups, with a Pre-Existing Condition waiver available if coverage is purchased within 21 days of the initial trip deposit.
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.
Below are two sample costs for a 35-year-old traveler purchasing our recommended best travel insurance plans for a 10-day, $3,000 trip to Iceland:
Comprehensive Travel Insurance Plans Example:
| Provider | Plan Name | Plan Cost | Cancellation and Interruption Limits | Medical and Medevac Limits |
|---|---|---|---|---|
| Travel Insured International | FlexiPAX | $27/day | $0 / $1,000 | $1,000,000 / $500,000 |
| Tin Leg | Gold | $35/day | $0 / $750 | $200,000 / $30,000 |
| Generali | Standard | $31/day | $0 / $0 | $250,000 / $50,000 |
| AXA | Platinum | $42/day | $0 / $1,000 | $1,000,000 / $250,000 |
Exploring these plans is recommended for travelers seeking Comprehensive Travel Insurance coverage, including Trip Cancellation, Trip Interruption, and baggage protection. These plans typically range from $25 to $30 per day, depending on coverage limits and traveler details.
But suppose you’re heading to Iceland with other insurance protections and just need healthcare coverage. In that case, these plans focus on covering Emergency Medical and Evacuations without including Trip Cancellation benefits, making them a cost-effective option for travelers primarily concerned with health coverage.
Medical-Only Travel Insurance Plans Example:
| Provider | Plan Name | Total Cost | Daily Cost | Emergency Med Limit | Medical Evac Limits |
|---|---|---|---|---|---|
| Trawick International | Safe Travels International Basic | $40 | $4/day | $100,000 | $250,000 |
| IMG | Patriot International Lite | $45 | $4.50/day | $50,000 | $500,000 |
| Seven Corners | Liaison Travel Basic | $50 | $5/day | $60,000 | $300,000 |
These medical-only plans are designed to offer the coverage you need, ensuring you’re protected against unexpected health-related expenses and providing peace of mind for medical emergencies abroad.
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.