The Best Travel Insurance Plans for Iceland in 2025
- The best travel insurance plans for Iceland
- Is it currently safe to travel to Iceland?
- Is travel insurance required by law to enter Iceland?
- Why take out travel insurance for Iceland?
- What should travel insurance for Iceland cover?
- The Cost of Travel Insurance for Iceland
- How to Pay Less for Your Travel Insurance to Iceland
- Will my current insurance cover me in Iceland?
- FAQ
Travel insurance for Iceland: key takeaways
1. Definition: Travel insurance for Iceland covers medical emergencies, trip cancellation, and other unforeseen travel incidents.
2. Key protection: Travel insurance is not mandatory for Canadians, but it is strongly recommended for your financial protection.
3. Healthcare cost: Healthcare is high-quality but expensive; a hospital night can cost over $1,500 CAD for tourists.
4. Price: A one-week travel insurance policy for Iceland typically costs between $30 and $70 CAD.
5. Good to know: Ensure your policy covers adventure activities and medical evacuation, especially for remote areas of Iceland.
Why trust HelloSafe?
HelloSafe is an international specialist in travel insurance comparison, advising over one million travelers every month. After analyzing 42 travel insurance policies available in Canada 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 | CA$1.5M | Best for comprehensive travel in Iceland. - high medical limit - helicopter rescue - flexible coverage options |
| Cap Assistance 24/24 | CA$1.5M | Strong for short trips to Iceland. - 24/7 support - trip cancellation included - no deductible |
| Tourist Card | CA$780K | Practical for tourists in Iceland. - good medical ceiling - emergency aid - competitive premium |
| Travel Pass Monde | CA$1.2M | A balanced offer for Iceland. - repatriation benefits - extensive global cover - hospital costs covered |
| Globe Partner | CA$465K | Reliable for essential needs in Iceland. - core medical care - repatriation included - civil liability |
| Globe Traveller | CA$780K | Affordable for uncomplicated stays. - primary medical protection - fast claims process - limited but sufficient ceiling |
- high medical limit
- helicopter rescue
- flexible coverage options
- 24/7 support
- trip cancellation included
- no deductible
- good medical ceiling
- emergency aid
- competitive premium
- repatriation benefits
- extensive global cover
- hospital costs covered
- core medical care
- repatriation included
- civil liability
- primary medical protection
- fast claims process
- limited but sufficient ceiling
Is it currently safe to travel to Iceland?
As of June 2025, Global Affairs Canada states that normal security precautions apply for travellers to Iceland. No regions are currently subject to specific warnings, but all Canadian citizens should remain attentive to potential local risks.
Here are their four main recommendations.
- Security risks: crime rates are low and violent acts are rare, but opportunistic theft can still affect tourists in busy areas such as Reykjavik’s city centre or Keflavik Airport. Remain vigilant when attending large festivals like Secret Solstice.
- Health risks: Iceland offers high-quality healthcare in Reykjavik and Akureyri, but access on the Westfjords and other remote regions is limited. Emergencies may require helicopter evacuation, which can incur very high costs.
- Natural hazards: volcanic eruptions are unpredictable and have disrupted travel around the Reykjanes Peninsula, including periods of closure at the Blue Lagoon. Unstable ground, hot springs, and swift river currents contribute to risks in popular nature sites.
- Environmental conditions: sudden weather changes are common, especially near landmarks such as Jökulsárlón glacier lagoon or on hiking routes like Laugavegur. Strong winds and poor visibility can quickly make road travel dangerous.
Although not required, travel insurance is strongly recommended by Global Affairs Canada, 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 legally mandatory for Canadian citizens to enter Iceland for short stays as a tourist.
Travel insurance is only mandatory for those applying for a Schengen visa, which does not apply to Canadian tourists. However, travel insurance is strongly recommended because medical services outside urban areas are limited and emergencies may require costly helicopter evacuation.
According to our data, 50% of travelers purchase travel insurance before going to Iceland. This is mainly due to the high cost of emergency medical care and the unpredictable nature of Iceland’s environment.
Why take out travel insurance for Iceland?
It is an essential financial and medical protection for anyone going to Iceland.
In Iceland, healthcare at facilities like Landspítali National University Hospital in Reykjavik is of high quality, but costs can be significant for foreign nationals. Services outside Reykjavik are limited, and medical evacuation—often needed for serious injuries or illness in remote areas—requires upfront payment and can be very costly.
Travel insurance covers medical expenses, hospitalisation, medication, ambulance transportation and repatriation to Canada if a serious incident occurs.
Here are some examples of healthcare costs in Iceland.
| Example of medical treatment | Cost at Landspítali Hospital | Covered by travel insurance |
|---|---|---|
| I have to be hospitalized 48 hours after contracting an infection | 700,000 ISK (about CA$6,900) | up to 100% |
| I broke my tibia (X-ray, cast, and crutch rental) | 320,000 ISK (about CA$3,200) | up to 100% |
| I need to be repatriated | 2,900,000 ISK (about CA$28,700) | up to 100% |
| I have appendicitis (consultation and surgery) | 1,100,000 ISK (about CA$10,900) | up to 100% |
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 should travel insurance for Iceland cover?
| Main coverages | Explanations and recommendations |
|---|---|
| 🏥 Medical expenses | Reimburses hospital and doctor’s fees in case of accident or illness. We recommend a reimbursement limit of at least CA$500,000 for Iceland. |
| 🚑 Emergency medical evacuation | Covers helicopter rescue or transfer to a major hospital, useful given remote locations and volcano risks. We recommend up to CA$250,000. |
| 🩺 Repatriation | Pays for transportation back to Canada in the event of a severe injury, illness, or death. You should seek coverage up to CA$100,000. |
| 💊 Prescription drugs | Reimbursement for medicines prescribed abroad following accident or illness. Recommended limit: CA$5,000. |
| 🦴 Adventure sports coverage | Extends to injuries during activities like glacier hikes or snowmobiling. Opt for plans covering at least CA$100,000 for adventure sports incidents. |
| ✈️ Trip cancellation/interruption | Refunds your non-refundable expenses if your trip is disrupted before or during your stay. Minimum: CA$5,000. |
| 🎒 Lost or stolen luggage | Compensates for baggage or valuables lost by airlines or stolen. Seek coverage up to CA$2,000 per trip. |
| 🧩 24/7 assistance services | Gives access to hotline support for emergencies and finding care providers. This service should be included and available at all times. |
We recommend a reimbursement limit of at least CA$500,000 for Iceland.
We recommend up to CA$250,000.
You should seek coverage up to CA$100,000.
Recommended limit: CA$5,000.
Opt for plans covering at least CA$100,000 for adventure sports incidents.
Minimum: CA$5,000.
Seek coverage up to CA$2,000 per trip.
This service should be included and available at all times.
Travel insurance from local providers or bank cards typically includes low limits, exclusions for key incidents, and limited medical services. For peace of mind, choose a trusted global insurer with strong protection. Compare top options at 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 | CA$42 |
| 2 weeks | 45 years old | CA$60 |
| 1 month | 35 years old | CA$88 |
| 1 month | 70 years old | CA$162 |
These prices are indicative and may vary depending on the coverage chosen and the specifics of each insurer.
Good to know
The cost of your travel insurance is influenced by several key factors: your age, the duration of your trip, your destination, the amount of coverage you select, and any add-ons like cancellation protection. Considering these elements is crucial for finding a policy that fits your needs and budget, ensuring you're well-protected without overpaying.
💡 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 |
|---|---|---|
| 🗓️ Trip duration | Insurance premiums increase with length of stay, and longer trips in Iceland can be expensive. | Choose coverage only for the exact dates of your stay and avoid adding extra days before or after. |
| 👤 Traveller's age | Older travelers often pay higher rates due to health risks, especially for adventure activities. | Compare multiple insurers and note Heymondo does not increase its prices for people over 62. |
| 🧳 Covered activities | Certain activities, like glacier hiking or snowmobiling, may lead to higher premiums or exclusions. | Declare only the activities you actually plan to do to avoid unnecessary extra coverage costs. |
| 💶 Level of coverage | High medical costs in Iceland make comprehensive coverage important, especially for medical evacuation or rescue. | Select a plan with at least CA$500,000 for medical and evacuation, but avoid unnecessary add-ons. |
| 🤝 Deductible | Policies with higher deductibles usually offer lower premiums, but you’ll pay more out of pocket if needed. | Choose the highest deductible you can reasonably afford to lower your premium. |
| 📱 Assistance services | 24/7 support is essential in Iceland, especially for travel in remote rural areas. | Opt for insurers offering included multilingual 24/7 assistance—you often don’t need to pay more. |
| 👨👩👧👦 Number of travelers | Some plans offer discounts for families or small groups traveling together. | Buy a family or group policy if traveling with others, it’s often more cost-effective per person. |
Will my current insurance cover me in Iceland?
It’s completely legitimate to wonder whether your existing coverage, such as public or private health insurance or credit card insurance, can fully protect you during a trip to Iceland. Unfortunately, this coverage is often limited or insufficient for international health expenses and travel risks.
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 (OHIP, RAMQ, MSP) | Limited coverage | Emergency care up to CA$50/day, does not cover repatriation, emergency evacuation, or private clinic fees. | Travel insurance covers up to CA$1,000,000+ for medical, including evacuation and repatriation, plus trip interruption. |
| Private health insurance (Manulife, Sun Life, Canada Life) | Limited coverage | May reimburse some costs after return, maximum CA$25,000, often excludes evacuation or multi-day hospital stays. | Travel insurance reimburses CA$1,000,000+ including helicopter rescue, hospital care, trip cancellation, and lost luggage. |
| Classic credit card (RBC Visa Classic, TD Classic Visa, BMO Mastercard) | Limited coverage | Emergency medical less than CA$10,000, typically does not include luggage loss, trip delay, or evacuation outside urban areas. | Travel insurance offers up to CA$1,000,000+ and covers high-cost emergencies and more complex scenarios relevant for Iceland. |
| Premium credit card (VISA Infinite, ScotiaGold Amex, CIBC Aventura) | Limited coverage | Medical up to CA$100,000, limited trip delay, often low or no coverage for evacuation outside cities or adventure travel risks. | Travel insurance provides CA$1,000,000+, covers adventure activities, full evacuation, medical repatriation, and lost baggage. |
Example
While hiking on a glacier, a Canadian tourist slipped, suffering a severe leg fracture. The helicopter evacuation to Reykjavik cost $25,000 CA. His premium TD Aeroplan Visa card only covered $5,000 for emergency transport and his provincial health plan covered almost nothing, leaving him with a staggering $20,000 bill.
Expert advice
Many credit cards and provincial health plans exclude crucial coverage, like trip interruption due to a relative’s illness. Carefully review your existing policies to avoid costly surprises abroad. In all cases, subscribing to dedicated travel insurance tailored to your trip is safer and more reassuring.
FAQ
Do I need a visa to travel to Iceland?
Canadian citizens do not need a visa for tourism or business stays of up to 90 days within any 180-day period in Iceland, as part of the Schengen area. Your passport must be valid for at least three months beyond your date of departure from the Schengen zone. Additional entry requirements, such as proof of funds, may apply.
How do I purchase travel insurance for Iceland?
First, use the HelloSafe travel insurance comparison tool to compare options. Next, check the policy details, paying attention to coverage for medical care, helicopter rescue, and volcanic activity risks in Iceland. Then, buy your chosen plan online. You will receive your insurance certificate by email for your records.
What specific risks should I pay attention to with travel insurance for Iceland?
Iceland’s unique geography means natural hazards like volcanic eruptions, geothermal activity, and strong winds. Choose a policy that covers medical evacuation, search and rescue, and interruption caused by natural disasters. Verify if adventure sports or driving in rural areas are included since these are common activities for visitors.
How much does travel insurance for Iceland cost for Canadians?
A typical two-week travel insurance policy for Iceland ranges from CA$50 to CA$180 per person. The cost depends on your age, length of stay, chosen coverage, and any optional add-ons such as adventure activity cover. Premiums are higher for extended trips or if you have pre-existing medical conditions.
If I travel to Iceland with children, do I need separate policies for each family member?
Most Canadian insurers let you add children and family members to a single travel policy for Iceland. This approach is often more cost-effective than buying individual plans and makes administration easier in case of claims. Check if your policy automatically covers children under a certain age at no additional cost.
Will my Canadian provincial health insurance cover any medical expenses in Iceland?
Canadian public health insurance offers extremely limited coverage abroad, usually reimbursing only a fraction of medical costs. Expenses like hospitalization, helicopter evacuation, and emergency dental care in Iceland would not be fully covered. Comprehensive travel insurance is strongly recommended to avoid substantial out-of-pocket expenses.
Do I need a visa to travel to Iceland?
Canadian citizens do not need a visa for tourism or business stays of up to 90 days within any 180-day period in Iceland, as part of the Schengen area. Your passport must be valid for at least three months beyond your date of departure from the Schengen zone. Additional entry requirements, such as proof of funds, may apply.
How do I purchase travel insurance for Iceland?
First, use the HelloSafe travel insurance comparison tool to compare options. Next, check the policy details, paying attention to coverage for medical care, helicopter rescue, and volcanic activity risks in Iceland. Then, buy your chosen plan online. You will receive your insurance certificate by email for your records.
What specific risks should I pay attention to with travel insurance for Iceland?
Iceland’s unique geography means natural hazards like volcanic eruptions, geothermal activity, and strong winds. Choose a policy that covers medical evacuation, search and rescue, and interruption caused by natural disasters. Verify if adventure sports or driving in rural areas are included since these are common activities for visitors.
How much does travel insurance for Iceland cost for Canadians?
A typical two-week travel insurance policy for Iceland ranges from CA$50 to CA$180 per person. The cost depends on your age, length of stay, chosen coverage, and any optional add-ons such as adventure activity cover. Premiums are higher for extended trips or if you have pre-existing medical conditions.
If I travel to Iceland with children, do I need separate policies for each family member?
Most Canadian insurers let you add children and family members to a single travel policy for Iceland. This approach is often more cost-effective than buying individual plans and makes administration easier in case of claims. Check if your policy automatically covers children under a certain age at no additional cost.
Will my Canadian provincial health insurance cover any medical expenses in Iceland?
Canadian public health insurance offers extremely limited coverage abroad, usually reimbursing only a fraction of medical costs. Expenses like hospitalization, helicopter evacuation, and emergency dental care in Iceland would not be fully covered. Comprehensive travel insurance is strongly recommended to avoid substantial out-of-pocket expenses.
