Do I Need Travel Insurance For Iceland

With Iceland’s rising popularity as a cold-weather hotspot, travelers are questioning the need for trip insurance.

Though not obligatory, it’s strongly recommended due to Iceland’s volatile climate, including volcanic eruptions.

Comprehensive plans cover flight disruptions and offer extras like baggage loss protection and medical evacuation.

Plus, it’s essential for those whose domestic health insurance doesn’t cover international trips, as accidents can result in hefty bills.

Travel insurance for Iceland
Travel insurance for Iceland: Photo source (Forbes)

Some countries even contemplate mandatory travel insurance for foreign visitors due to unpaid medical expenses.

So, consider a travel medical plan for your Iceland visit.

How Much is Travel Insurance to Iceland?

The cost of trip protection for Icelandic holidays varies based on factors like plan type, coverage needs, number and ages of travelers, trip duration, and desired coverage.

Typically, more comprehensive plans come at a higher cost. Some travelers choose full trip cost coverage, while others prefer basic travel medical plans.

InsureMyTrip offers a wide range of plans to match each traveler’s needs and budget.

Is Iceland a Schengen Country?

Iceland is indeed part of the Schengen Zone, consisting of 26 countries.

These countries have specific insurance requirements for travel visa issuance.

U.S. citizens do not need a Schengen Visa for Iceland, but U.S. residents who aren’t citizens may need to follow Schengen rules.

Starting January 1, 2021, U.S. citizens must apply for an ETIAS before traveling to Europe.

Some countries’ citizens must obtain a Schengen visa for Iceland.

If you fall into this category, consider getting Schengen Visa travel insurance for your Icelandic trip.

Do I Need a Passport for Iceland?

Yes, a valid passport is necessary for traveling to Iceland. U.S. citizens should ensure their passport is valid for at least three months beyond their planned departure date, though it’s advisable to have more buffer time.

Meeting Schengen requirements is crucial, as failure to do so could result in boarding refusal.

To avoid issues, it’s strongly recommended to have at least six months of validity left, especially when visiting other Schengen nations.

Do I Need a Visa for Iceland?

As a result of the Schengen Agreement, U.S. citizens can visit Iceland without a visa for tourist and business purposes for up to 90 days.

You will need sufficient funds and a return ticket to enter the country.

Students who plan to study abroad in Iceland for more than three months will need to apply for a residence permit.

Iceland Travel Tips & Safety

Money & Currency in Iceland:
  • Iceland’s currency is the Icelandic Króna (ISK).
  • Most transactions in Iceland are done using credit or debit cards.
  • Consider exchanging some cash for tolls and tips, but it’s not essential.
  • Inform your bank and credit card companies about your travel plans.
  • Bring cards from different issuers to avoid issues accessing funds abroad.
VAT Refunds:
  • Iceland has a value-added tax (VAT) on many goods and services.
  • Keep receipts to potentially get a VAT refund before leaving.
  • Ask for a tax-free form when making a purchase.
  • Complete the form, get it signed by the store, and attach the receipt.
  • Refunds are for non-citizens who spend a minimum of ISK 4,000 and leave Iceland within three months.
  • Tipping is not required in Iceland, as service and VAT are included.
  • Although appreciated, visitors are not expected to tip.
  • Renting a car is the easiest way to explore Iceland.
  • You’ll need a card with a PIN for gas purchases; debit cards work.
  • Alternatively, buy a prepaid gas card.
  • Reykjavik has a bus system; no railways or trains.
  • Domestic flights are the fastest but can be costly with checked bags.
  • Icelanders may seem dry or have an unusual sense of humor but are warm and welcoming.
  • They have high literacy rates and a natural curiosity.
  • Icelanders are known for enjoying drinks and may encourage you to join.
Food in Iceland:
  • Icelandic diet consists mainly of lamb, seafood, and dairy.
  • Adventurous eaters can try hákarl, a fermented shark dish and the national dish.
  • Icelandic is the national language.
  • English is widely spoken.
  • Learning a few Icelandic phrases is appreciated by locals.
Risk & Crime
Safety in Iceland:
  • Iceland is one of the safest places for travelers.
  • Parents often leave sleeping babies outside cafes.
  • Low crime rates, making it great for solo travelers and students.
  • Still, some risks: Reykjavik nightlife can be intimidating, pickpockets in tourist areas.
  • Check travel advisories for updates.
Nature Risks:
  • Nature is the main threat to tourists in Iceland.
  • Unpredictable weather can be hazardous, especially in winter.
  • Road closures due to winter conditions, wind, and landslides.
  • Iceland’s popular beaches have deadly, unpredictable waves.
  • Strong undercurrent, icy sea, and tall waves even on calm days.
  • Avoid wandering on icebergs; they can break away suddenly.
Staying Safe:
  • Use common sense and self-awareness to stay safe.
  • Follow guide and sign advice, especially when challenging nature’s elements.


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