Exploring the Faroe Islands by car is one of the most unforgettable ways to experience this stunning North Atlantic archipelago. Towering sea cliffs, rolling hills, remote villages, and dramatic skies create a sense of adventure that buses and guided tours cannot match. Before you set off, it is important to understand how car rental insurance works in the Faroe Islands. While the roads are generally well-maintained, they can be narrow, winding, and unpredictable, and many visitors are surprised by insurance rules when they arrive. With the right information, you can rent a car with confidence and avoid unexpected costs.
Insurance may seem complicated at first, but it is protection that keeps you safe from unexpected expenses and stress. Basic insurance is included by law with every rental car, but it rarely covers every scenario you might encounter, from sheep wandering onto roads to gravel chips from rough surfaces. Choosing the right coverage lets you focus on the incredible landscapes, local culture, and freedom that come with driving yourself through this remarkable destination. Understanding your options ensures you can enjoy the journey fully prepared.
When you rent a car in the Faroe Islands, basic insurance is included automatically. This coverage typically includes third-party liability, Collision Damage Waiver, and theft protection, allowing you to drive legally and providing essential financial safety.
Basic insurance is only the starting point. To be fully protected, many travellers add excess reduction insurance, also called Super Collision Damage Waiver or liability reduction. This lowers your financial responsibility if the car is damaged or stolen. Without it, even minor damage could cost hundreds or thousands. By paying a small daily fee, you reduce the amount you would pay in a claim to a more manageable level.
Standard insurance also does not cover all types of damage. Optional add-ons such as windscreen and tyre cover, undercarriage protection, or animal collision protection can provide extra security. In the Faroe Islands, where gravel roads and wandering sheep can cause unexpected damage, these add-ons offer valuable peace of mind.
It is important to know what standard rental insurance does not cover. Collision Damage Waiver usually excludes damage to glass, tyres, wheels, interior, windscreen, undercarriage, and personal belongings. Lost keys or accessories like GPS units or child seats are also not covered.
Driving recklessly, under the influence, or failing to report an accident can invalidate your insurance, leaving you fully liable. Many policies also exclude damage from weather or unpaved roads unless extra coverage is purchased. With the Faroe Islands’ rural and coastal roads exposed to sea spray, strong winds, and rough surfaces, additional protection is often worth considering.
Choosing the right insurance starts with being honest about how and where you plan to drive. Basic cover with excess reduction may be enough if you stick to main paved roads and towns, but trips to remote fjords, gravel back roads, or more adventurous routes make additional protection valuable. Check the definition and limits of liability, as some companies still hold you responsible for high costs even with Collision Damage Waiver.
Gravel protection is important on unpaved roads to avoid damage to paintwork, mirrors, or windscreens, and basic plans may not cover wind or storm damage. For complete peace of mind, opt for full coverage that includes reduced excess, gravel protection, windscreen, and tyre cover to make your trip stress-free.
A common misconception is that travel insurance or credit card coverage replaces rental car insurance. While they may offer some protection, they often exclude damage from gravel, animals, windscreens, or the undercarriage, and in the Faroe Islands, local rules may require proof of specific coverage.
Relying only on these policies could leave you responsible for costs usually covered by a local rental plan. Basic insurance also does not cover every accident, and even minor dents or scratches can lead to a high excess if liability is not reduced. Always read the terms carefully, ask questions, and ensure your coverage fits your travel plans.
Focusing on safe driving habits is just as important as having the right insurance. Practicing caution on the roads of the Faroe Islands helps prevent accidents and protects your rental investment.
If you want to explore the Faroe Islands with total confidence, rent a car with Final Rentals, the trusted global platform that makes your journey effortless from start to finish. With Final Rentals, booking is simple, pricing is transparent, and you get flexible options and instant online confirmation so you always know exactly what to expect. You can easily compare vehicles from local providers, select optional insurance, and rest assured that there will be no hidden surprises when you arrive.
Final Rentals provides 24-hour customer support to answer questions about insurance, excess amounts, or driving conditions, giving you complete peace of mind. By choosing Final Rentals, you are not just booking a car; you are unlocking the best rates, supporting local rental companies, and ensuring a smooth and worry-free adventure. For more expert guidance on driving and renting a car in the Faroe Islands, check out What You Need to Know Before Renting a Car and Driving in the Faroe Islands.
Before picking up your rental car in the Faroe Islands, it is important to be prepared. Having the right documents and understanding the process will ensure a smooth start to your journey.
Renting a car and choosing the right insurance in the Faroe Islands can be stress-free with a little planning and the right guidance. With proper coverage, you can explore dramatic fjords, peaceful valleys, and scenic coastal roads at your own pace and with complete confidence.
When you are ready to start your adventure, rent a car in the Faroe Islands with Final Rentals to enjoy freedom, flexibility, and peace of mind from the moment you arrive. For even greater convenience, you can book and manage your rental on the go by downloading the Final Rentals app on Google Play or the App Store, making your journey smooth and enjoyable from start to finish.
