What Is SCDW Insurance in Iceland (and Do You Really Need It)?

Daniel Cramer Daniel Cramer

Daniel Cramer

3 min read
What Is SCDW Insurance in Iceland (and Do You Really Need It)?
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Booking a rental car in Iceland and seeing ?SCDW? pop up?

You're not alone. Super Collision Damage Waiver (SCDW) is one of the most common questions travelers ask when booking, and it can feel confusing with so many acronyms and options.

Here's a clear, plain-English guide to what it actually is, what it covers, and when it makes sense to buy it.

What does SCDW mean in Iceland?

SCDW stands for Super Collision Damage Waiver.
It's an optional insurance upgrade that lowers the maximum amount you'd have to pay if your rental car is damaged in an accident.

Example:

  • Without SCDW, your liability might be ?2,500.
  • With SCDW, it's reduced to around ?500.

Think of it as extra peace of mind that lowers your risk if something goes wrong.

What does SCDW usually cover (and not cover)?

Every supplier is slightly different, but here's the general rule:

Typically covered by SCDW

  • Damage from collisions with other vehicles
  • Bodywork damage (doors, bumpers, panels)
  • Accidents in normal driving conditions

Not covered by SCDW

  • Underbody damage (often from F-roads)
  • Water damage from rivers, waves, or flooding
  • Ash or sand damage (common in Iceland in spring/summer storms)
  • Tires, glass, or interior damage
  • Damage caused by reckless driving or off-road use

Always read your supplier's terms, as coverage can vary.

How much does SCDW cost in Iceland?

On average, ?10?20 per day.

Some suppliers include it in their standard package, while others only offer it as an add-on.

At Northbound, we clearly show what's included in each rental so there are no surprises.

Do you need SCDW in Iceland?

Here's the honest answer: it depends on your trip.

When you should consider SCDW:

  • Traveling in winter, when icy roads and wind make accidents more likely
  • Planning long distances or driving in remote areas
  • If your credit card insurance doesn't cover rentals in Iceland
  • If a large deductible (?2,000?3,000) would ruin your trip budget

When you might skip it:

  • Short city-based trips in summer
  • Confident drivers with comprehensive credit card coverage
  • Travelers comfortable holding a higher deposit
Image of the front of a crashed vehicle

Quick takeaway

If losing sleep over a ?2,500 bill would ruin your trip, SCDW is worth it for the peace of mind.
If you're only driving short distances, already covered by your card, or okay with higher liability, you can skip it.

FAQ: SCDW Insurance in Iceland

Is SCDW mandatory in Iceland?
No. Basic CDW (Collision Damage Waiver) is usually included by law. SCDW is optional.

What's the difference between CDW and SCDW?
CDW lowers liability from the full value of the car to around ?2,500. SCDW lowers it further, usually to ?500.

Does SCDW cover gravel, ash, or sand damage?
Usually not. Many suppliers sell separate Gravel Protection (GP) or Sand & Ash Protection (SAAP).

Can I buy SCDW at the rental desk?
Yes, but it's usually cheaper to add it when booking online.

Explore more on Northbound

Want to be better prepared for your trip? Here are more resources you might find useful:

Still unsure about coverage? Compare cars and insurance options on Northbound.is and see exactly what's included before you book.