Mandatory Vehicle Insurance
All registered vehicles must be insured with mandatory vehicle insurance. This includes third-party liability insurance and accident insurance for the driver and owner.
With vehicle insurance, you are primarily protecting yourself and others from damages you may cause on the road. You also have the option to add windshield insurance.
Frequently Asked Questions
Information regarding the insurance
What type of insurance is this?
The Mandatory Vehicle Insurance consists of mandatory liability insurance and driver and owner accident insurance. Windshield insurance, which is optional, can also be included.
What is covered? | What is not covered? |
|---|---|
| Mandatory motor liability insurance covers: | Motor liability insurance does not cover: |
Damage you cause to others while using the vehicle, including to people or property. | Damage to the vehicle causing the accident. |
Damage to the insured party‘s property unless the damage is to another vehicle.. | |
| Driver and owner accident insurance covers: | Driver and owner accident insurance does not cover: |
Personal injury sustained by a driver who causes damage while driving the vehicle and for an injury sustained by the owner as a passenger. | Damage caused by gross negligence or by intent. |
| Windshield insurance (optional insurance) covers: | Windshield insurance does not cover: |
Broken windows in the vehicle. | Scratches in the windshield. |
Damage to a glass sunroof. | |
Damage to windshield during installation or removal. |
Any limitations on what the insurance covers?
If the driver of the vehicle is not licensed to drive it, Sjóvá may demand reimbursement from the driver or the owner if the vehicle causes any damage.
Where is the insurance valid?
The insurance is valid in Iceland and other member states of the European Economic Area (EEA) and Switzerland.
What responsibilities do I have?
You must report any damage as soon as possible and no later than one year from the date of the damage.
You must ensure that all the information in the insurance policy is accurate.
You must inform us of any changes in your address, telephone number, and email address.
You must follow all the precautions in the terms of the insurance policy.
When and how do I pay the premium?
The premium must be paid on the due date. When the insurance policy is issued or renewed an electronic claim is created in your online bank. You have the option to distribute the premium payments by:
Credit card payment, where the premium is charged monthly to a credit or debit card.
Direct payment, where your bank account is debited monthly.
Corporate distribution, where the premium can be paid in monthly payments.
When does the insurance start and when does it end?
The insurance policy takes effect when an offer is accepted and is renewed annually until it is canceled.
How do I cancel the insurance?
Individuals and companies with fewer than five full-time positions can cancel the insurance at any time and it will expire at the end of the following month after the cancellation is received. Other companies can cancel their insurance one month in advance before the end of the insurance period.
The cancellation must be in writing, for example with an electronic signature.
The cancellation must be accompanied by confirmation from another insurance company that the Mandatory Vehicle Insurance has taken effect there.