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If you’re planning a trip to Iceland, it’s important to consider the benefits of travel insurance coverage. While it may not be a requirement for tourists from the U.S., having the right insurance can provide you with peace of mind and financial protection in case of unexpected events. In this article, we’ll explore the different types of coverage to consider for your Iceland holiday.
Why Travel Insurance is Important
While Iceland offers low-cost flights and a visa-free stay of up to 90 days for U.S. tourists, travel still requires a significant investment. Cancellations can happen due to various reasons, and without trip cancellation coverage, you may not be able to recover the money spent on air tickets and hotel reservations. Additionally, the U.S. State Department recommends health insurance coverage for tourists visiting Iceland, as many standard policies, including Medicare, do not cover overseas medical expenses. Iceland’s average healthcare costs are over $6,000 per year, so a single injury or accident could significantly increase your trip cost.
Health Insurance Coverage
Iceland’s healthcare system is highly ranked, but treatment facilities may require full payment upon discharge. Therefore, having health insurance coverage is essential. While not required to travel, it is recommended by the U.S. State Department. If you have private health insurance in the U.S., it’s important to check with your provider to see if you have coverage abroad. Most standard policies do not cover overseas medical expenses, so having travel insurance can fill this gap and provide you with the necessary coverage.
Coverage for Adventure Activities
Iceland is known for its adventure activities, but these activities come with a risk of injury. While travel insurance can provide medical coverage, it’s important to note that international travel insurance policies may not cover injuries related to extreme sports, such as skydiving. If you plan on participating in these activities, it’s important to read the policy carefully and consider additional coverage if needed.
Types of Coverage to Consider
When choosing travel insurance for your Iceland holiday, here are five types of coverage to consider:
1. Cancel for Any Reason Coverage (CFAR)
A travel insurance policy with cancel for any reason (CFAR) coverage allows you more flexibility in canceling prepaid, nonrefundable trip expenses. While standard policies typically only offer reimbursement for specific reasons beyond your control, CFAR coverage allows you to cancel for reasons like scheduling conflicts or changes in plans. This type of coverage can provide peace of mind if you’re booking your Iceland getaway well in advance.
2. Gear Theft Protection
Comprehensive travel insurance coverage includes emergency medical costs, trip cancellations, lost baggage, and gear theft insurance. While some providers may offer gear protection as a policy add-on, it’s important to consider the coverage limits. If you have valuable devices like smartphones, cameras, or laptops, you may need additional gear theft protection to ensure full compensation in case of theft or damage.
3. Medical Emergency Insurance and Emergency Medical Evacuation
One of the primary reasons to purchase travel insurance is to avoid out-of-pocket medical costs. Travel medical insurance can cover emergency care and, in most cases, provide coverage for evacuation back to the U.S. if you require more intensive care at home. It’s important to check with your U.S.-based insurance provider to see if they cover overseas medical expenses. Additionally, having a European Health Insurance Card (EHIC) may not provide coverage in Iceland, as it is outside the European Union (EU).
4. Rental Car Protection
If you plan on renting a car in Iceland, it’s important to have the necessary insurance coverage. Iceland requires third-party liability insurance for all drivers renting a car, which is usually included in the rental cost. However, rental car companies may offer collision damage waiver insurance for damage to the rented vehicle. It’s important to read the policy carefully and consider additional rental car coverage if needed. Some U.S.-based insurers may cover rental cars, but it’s important to verify the coverage and amounts before relying on it.
5. Trip Cancellation Insurance
Trip cancellation insurance is crucial for protecting your pre-booked portions of the Iceland vacation. This insurance can provide reimbursement if your travel gets canceled due to circumstances beyond your control, such as serious accidents, illness, or acts of terrorism. It’s important to review the policy documents for a complete list of covered cancellations. Additionally, trip interruption coverage can cover costs associated with delays after your journey begins, which can be helpful in case of volcanic eruptions or other unexpected events in Iceland.
Conclusion
When planning your Iceland adventure, it’s important to consider the benefits of travel insurance coverage. From trip cancellations to medical emergencies and rental car protection, having the right insurance can provide you with peace of mind and financial protection. While not required for U.S. tourists, travel insurance is highly recommended by the U.S. State Department. So, before embarking on your Iceland holiday, make sure to explore the different coverage options available and choose the insurance that best suits your needs.
Remember, having the right travel insurance coverage can make all the difference in ensuring a safe and worry-free trip to Iceland.