Motor Vehicle Insurance

Motor Vehicle Insurance is divided into 3 categories:

Compulsory Insurance (Skyldutrygging)

Everyone who owns a registered motor vehicle needs to buy Compulsory Insurance according to Icelandic law. Compulsory Insurance compensates for all damage caused by your vehicle. It also compensates for accidents sustained when you are driving your vehicle or when you are a passenger in your own vehicle. If the damage totals more than 200,000 ISK then you pay a premium surcharge of 35,000 ISK.

Windshield Insurance (Bílrúðutrygging)

Windshield Insurance compensates for damage to all normal car window breakages as well as the cost of installation, unless the owner has caused the damage intentionally or through extreme carelessness.

Comprehensive Insurance for Motor Vehicles (Kaskótrygging)

Comprehensive Insurance covers damage to your vehicle and accessories if damage occurs. The insurance also compensates for damage due to theft, break-in or vandalism to the vehicle. You choose your own excess and then pay only that amount if damage occurs.

Apply

To apply for Motor Vehicle Insurance or receive more information, please contact a TM service representative at +354 515 2000 or send an email to tm@tm.is. The TM office is located at Síðumúli 24, Reykjavík, and is open weekdays 8.30am-4.30pm.