- The best travel insurance plans for Iceland
- Is it currently safe to travel to Iceland?
- Is travel insurance required by law to enter</b> Iceland?
- Why take out travel insurance for Iceland?
- What travel insurance for Iceland should cover
- The cost of travel insurance for Iceland
- How to pay less for your travel insurance to Iceland
- Can I rely on my current insurance to cover me in Iceland?
- FAQ
Travel insurance for Iceland: key takeaways
1. Definition: Travel insurance for Iceland covers medical emergencies, trip cancellations, and lost luggage during your trip.
2. Key protection: Insurance is not mandatory for Australians, but it is essential due to high potential medical costs.
3. Healthcare cost: Healthcare is excellent but very expensive, with hospital stays costing over AUD $2,000 per night.
4. Price: A one-week travel insurance policy for Iceland generally costs between AUD $40 and AUD $80.
5. Good to know: Australia has no reciprocal healthcare agreement with Iceland, so you must pay all medical costs.
Why trust HelloSafe?
HelloSafe is an international specialist in travel insurance comparison, advising over one million travelers every month. After analyzing 38 travel insurance policies available in Australia our experts share here everything you need to know to choose the best travel insurance for Iceland.
The best travel insurance plans for Iceland
| Contract we recommend | Medical reimbursement limit | Our view |
|---|---|---|
| HelloTravel Premium | AUD 1.6M | A top choice for trips to Iceland, with broad medical and emergency protection. - high reimbursement - repatriation included - flexible policy |
| Cap Assistance 24/24 | AUD 1.6M | Ideal for short or adventure travel in Iceland. - 24/7 emergency helpline - good medical ceiling - no deductible |
| Tourist Card | AUD 800K | Simple and effective solution for tourism in Iceland. - solid medical cover - fast claims - user-friendly terms |
| Travel Pass Monde | AUD 1.1M | Balanced protection with broad coverage for health and assistance. - repatriation - hospitalisation - practical worldwide reach |
| Globe Partner | AUD 480K | Useful for worry-free travels and short stays. - covers medical care - repatriation assistance - streamlined claims |
| Globe Traveller | AUD 800K | Effective for essential medical cover on limited budgets. - covers basics - responsive support - faster reimbursement ceilings than most basic plans |
- high reimbursement
- repatriation included
- flexible policy
- 24/7 emergency helpline
- good medical ceiling
- no deductible
- solid medical cover
- fast claims
- user-friendly terms
- repatriation
- hospitalisation
- practical worldwide reach
- covers medical care
- repatriation assistance
- streamlined claims
- covers basics
- responsive support
- faster reimbursement ceilings than most basic plans
Is it currently safe to travel to Iceland?
As of June 2025, the Australian Department of Foreign Affairs and Trade advises travellers to exercise normal safety precautions in Iceland, which is considered a safe destination for Australians.
Here are their four main recommendations.
- Security risks: crime rates are low, but petty theft can occur, especially around tourist sites in Reykjavik. Exercise caution in crowded places and store valuables securely.
- Health risks: healthcare is of a high standard, but costs are significant and there is no reciprocal healthcare agreement with Australia. In remote areas, medical evacuation may be necessary due to limited services.
- Environmental hazards: Iceland faces ongoing volcanic activity, with eruptions on the Reykjanes Peninsula and volcanic gas clouds affecting areas like Grindavík and Þorlákshöfn. Always observe exclusion zones near eruption sites and monitor local updates.
- Weather conditions: severe weather events, such as snow, sand, and ash storms, are common. Rapid changes can disrupt road and air travel, so check local forecasts and road conditions before travelling.
Although not required, travel insurance is strongly recommended by the Australian Department of Foreign Affairs and Trade, particularly to cover medical expenses and emergency repatriation, which can be extremely costly in Iceland.
Is travel insurance required by law to enter Iceland?
No, travel insurance is not mandatory for travellers from Australia to enter Iceland.
While not legally required, it is still strongly recommended to have travel insurance before going to Iceland. Healthcare in Iceland is of a high standard, but services are expensive and there is no reciprocal agreement with Australia. Medical evacuation and private healthcare costs can be very high and must be paid upfront without insurance.
According to our data, 50% of travellers purchase travel insurance before going to Iceland, primarily due to the high cost of medical care and the risks linked to accidents in a region known for adventure activities.
Why take out travel insurance for Iceland?
It is an essential financial and medical protection for anyone going to Iceland.
In Iceland, healthcare is of a high standard but costs are equivalent to or even higher than private treatment in Australia. Foreigners do not have access to any public reimbursement, even at Landspítali University Hospital in Reykjavik or in private clinics such as Domus Medica. Medical services, consultations and hospitalisation must be paid upfront, and rural areas offer only limited facilities.
Travel insurance covers medical fees, hospitalisation, medication, ambulance transport, and emergency repatriation to Australia in the event of a serious incident.
Here are some examples of healthcare costs in Iceland.
| Example of medical treatment | Cost at Landspítali University Hospital | Covered by travel insurance |
|---|---|---|
| I have to be hospitalized 48 hours after contracting an infection | 350,000 ISK (about AUD 3,700) | up to 100% (normally up to AUD 2,000,000) |
| I broke my tibia (X-ray, cast, and crutch rental) | 250,000 ISK (about AUD 2,650) | up to 100% (normally up to AUD 2,000,000) |
| I need to be repatriated | 2,000,000 ISK (about AUD 21,000) | up to 100% (normally up to AUD 2,000,000) |
| I have appendicitis (consultation and surgery) | 500,000 ISK (about AUD 5,300) | up to 100% (normally up to AUD 2,000,000) |
These prices are given as an indication and may vary depending on the facilities and regions.
It is therefore essential to take out appropriate travel insurance to avoid unexpected and potentially high expenses.
What travel insurance for Iceland should cover
| Main coverages | Explanations and recommendations |
|---|---|
| 🏥 Medical expenses | Covers emergency treatment, hospitalisation, consultations, and medication if you fall ill or have an accident. For Iceland, we recommend a minimum reimbursement limit of AUD 500,000. |
| 🚑 Emergency medical evacuation and repatriation | Pays for ambulances or evacuation to Australia if required due to serious accident or illness. A coverage of at least AUD 1,000,000 is recommended. |
| 💼 Lost, stolen or damaged luggage | Protects your belongings, bags, and valuables if lost, stolen or accidentally damaged. We recommend cover up to AUD 7,500 per person for Iceland. |
| ✈️ Trip cancellation and interruption | Reimburses prepaid costs if your trip is cancelled or disrupted by major events (volcano, sickness, emergencies). Look for cover over AUD 10,000. |
| ⛑️ Personal liability | Pays for accidental damage or injury you cause to others. A limit of at least AUD 2,000,000 is advisable. |
| 🏔️ Search and rescue | Covers costs of mountain, volcano or wilderness rescue if needed. Recommended limit is AUD 50,000. |
| 🦷 Emergency dental treatment | Covers urgent dental care due to accident or infection. A minimum cover of AUD 2,500 is suggested. |
| 🚗 Rental vehicle excess | Pays the excess if your rental car is damaged or stolen. Cover up to AUD 6,000 is advised for driving in Iceland. |
For Iceland, we recommend a minimum reimbursement limit of AUD 500,000.
A coverage of at least AUD 1,000,000 is recommended.
We recommend cover up to AUD 7,500 per person for Iceland.
Look for cover over AUD 10,000.
A limit of at least AUD 2,000,000 is advisable.
Recommended limit is AUD 50,000.
A minimum cover of AUD 2,500 is suggested.
Cover up to AUD 6,000 is advised for driving in Iceland.
Travel insurance from local providers or bank cards often offers limited benefits, with low limits and many exclusions. It is safer to choose a trusted insurer with full coverage. Compare the best options on HelloSafe and subscribe online for instant certification.
The cost of travel insurance for Iceland
| Trip duration | Traveler’s age | Indicative price per person |
|---|---|---|
| 1 week | 25 years old | AUD 60 |
| 2 weeks | 45 years old | AUD 105 |
| 1 month | 35 years old | AUD 150 |
| 1 month | 70 years old | AUD 295 |
These prices are indicative and may vary depending on the coverage chosen and the specifics of each insurer.
Good to know
Your travel insurance cost for Iceland is influenced by several factors: your age, trip duration, level of cover, and any pre-existing medical conditions. Extras like cancellation or adventure sports cover also play a part. Keeping these in mind is crucial to select a suitable policy for your trip, protecting you from Iceland's high medical costs.
💡 It is always recommended to compare multiple offers to find the best value-for-money plan for you. You can use HelloSafe.
👉 Compare the best travel insurance for freeI compareHow to pay less for your travel insurance to Iceland
Here are some suggestions to optimize the cost of your travel insurance to Iceland while keeping good coverage:
| Criteria | Why it matters | Expert tip |
|---|---|---|
| 🗓️ Duration of the trip | The premium increases with longer travel. Most trips from Australia to Iceland last from 1 to 4 weeks. | Buy coverage only for the exact dates of your trip and check for discounts for longer trips. |
| 👤 Traveller’s age | Premiums often rise sharply for travellers above 60, but healthy younger Australians typically pay much less. | Compare providers for seniors; Heymondo does not increase its prices for people over 62. |
| 🎒 Level of coverage | High coverage means higher cost, but excessive limits may be unnecessary for some. Evaluate likely risks for Iceland, such as injury from outdoor activity. | Choose adequate but not excessive coverage, especially for medical, baggage, and liability. |
| ⚕️ Medical exclusions | Existing medical conditions can push up the price. Iceland has high care costs, but most visits are low risk for healthy people. | Declare pre-existing conditions only if you need cover, as this can help reduce unnecessary surcharges. |
| 👨👩👦 Traveller group size | Insurers often offer discounts on family or group policies, making it cheaper for those travelling together. | Opt for family or group plans to benefit from reduced per-person premiums. |
| 🗺️ Activities planned | Adventure sports or ice cave tours in Iceland can increase price, but standard cover may suffice for classic tourism. | Exclude risky activities from cover if you’re not doing them to lower your premium. |
| 📱 Online policy purchase | Buying insurance online usually costs less than buying at the airport or through agencies. | Compare and buy insurance online using comparison tools to find the most competitive offers. |
Can I rely on my current insurance to cover me in Iceland?
It’s reasonable to consider whether your existing coverage—such as Medicare, private health insurance or credit card insurance—will protect you during a trip to Iceland. Unfortunately, this coverage is often limited or insufficient outside Australia, especially given Iceland’s high medical costs.
Here is a summary table to help you review your current insurance and what it covers.
| Type of insurance | Valid in Iceland? | What it covers | Why Travel Insurance is better |
|---|---|---|---|
| Public health insurance (Medicare) | Never | No coverage outside Australia. Medical costs, hospitalisation, evacuation and baggage are not covered. | Travel insurance covers medical expenses up to AUD 3,000,000 and reimburses evacuation and personal liability. |
| Private health insurance (Bupa, HBF, NIB) | Limited coverage | May cover some emergency overseas hospital costs, often capped at AUD 1,000–AUD 5,000. No repatriation. | Travel insurance pays up to AUD 1,000,000–AUD 10,000,000 and includes baggage loss, cancellations, and evacuation. |
| Classic credit card (Commonwealth, ANZ, NAB) | Limited coverage | Trip delay, theft, limited medical up to AUD 10,000–AUD 20,000 if criteria met. High excess and exclusions. | Travel insurance fully covers medical, evacuation and baggage with higher limits and lower excess, no pre-payment needed. |
| Premium credit card (Westpac, Amex, Citi) | Limited coverage | Higher limits—up to AUD 50,000 medical and travel, select incidents. Strict activation conditions apply. | Travel insurance offers broader cover with medical, legal, delays, and adventure activities up to AUD 10,000,000. |
Example
While glacier hiking, Chloe badly fractured her ankle. The helicopter rescue and surgery in Reykjavik totalled AU$45,000. Her CommBank card's insurance only covered AU$5,000, and her Australian health policy was useless overseas. Without proper travel insurance, she faced a shocking AU$40,000 bill for her Icelandic misadventure.
Expert advice
Trip interruption, like for a relative's illness, is often excluded from credit card or health insurance policies. Always read the PDS to avoid nasty surprises abroad. In all cases, it's safer and more reassuring to get dedicated travel insurance tailored specifically for your trip.
FAQ
Do I need a visa to travel to Iceland?
Australian citizens do not need a visa to visit Iceland for stays of up to 90 days within any 180-day period in the Schengen area. Your passport must be valid for at least 3 months beyond your planned departure from Iceland and must have been issued within the last 10 years.
How do I purchase travel insurance for Iceland?
Start by comparing policies using the HelloSafe travel insurance comparison tool. Next, check the cover and exclusions, making sure to consider specific needs for Iceland, such as activities and volcanic risks. Purchase your chosen policy online, then receive your insurance certificate instantly by email.
Is healthcare expensive in Iceland for travellers?
Healthcare in Iceland is high quality but can be very costly for visitors. There is no reciprocal agreement between Australia and Iceland, so you will be required to pay full price for any medical services. Adequate travel insurance is highly recommended to avoid unexpected costs.
Can I get emergency assistance in Iceland if I need it?
Yes, most comprehensive travel insurance policies provide 24/7 emergency assistance. If you need urgent help, you can call the emergency number 112 in Iceland, and your insurer can guide you on procedures for medical care, evacuation, or emergencies, including volcanic incidents.
What should I look for in a travel insurance policy for Iceland?
Check for high medical and evacuation limits, especially because of the risk of natural hazards like volcanic eruptions and severe weather. Ensure cover for trip cancellation, delays, lost baggage, and activities such as hiking or ice cave tours, which are popular with visitors to Iceland.
Are adventure activities and outdoor excursions covered?
Many policies cover standard activities like hiking or visiting national parks, but more hazardous activities such as glacier trekking or snowmobiling may require extra cover. Always check policy details and purchase additional coverage for adventure sports if you plan to participate in these excursions.
Do I need a visa to travel to Iceland?
Australian citizens do not need a visa to visit Iceland for stays of up to 90 days within any 180-day period in the Schengen area. Your passport must be valid for at least 3 months beyond your planned departure from Iceland and must have been issued within the last 10 years.
How do I purchase travel insurance for Iceland?
Start by comparing policies using the HelloSafe travel insurance comparison tool. Next, check the cover and exclusions, making sure to consider specific needs for Iceland, such as activities and volcanic risks. Purchase your chosen policy online, then receive your insurance certificate instantly by email.
Is healthcare expensive in Iceland for travellers?
Healthcare in Iceland is high quality but can be very costly for visitors. There is no reciprocal agreement between Australia and Iceland, so you will be required to pay full price for any medical services. Adequate travel insurance is highly recommended to avoid unexpected costs.
Can I get emergency assistance in Iceland if I need it?
Yes, most comprehensive travel insurance policies provide 24/7 emergency assistance. If you need urgent help, you can call the emergency number 112 in Iceland, and your insurer can guide you on procedures for medical care, evacuation, or emergencies, including volcanic incidents.
What should I look for in a travel insurance policy for Iceland?
Check for high medical and evacuation limits, especially because of the risk of natural hazards like volcanic eruptions and severe weather. Ensure cover for trip cancellation, delays, lost baggage, and activities such as hiking or ice cave tours, which are popular with visitors to Iceland.
Are adventure activities and outdoor excursions covered?
Many policies cover standard activities like hiking or visiting national parks, but more hazardous activities such as glacier trekking or snowmobiling may require extra cover. Always check policy details and purchase additional coverage for adventure sports if you plan to participate in these excursions.
