Insurance required while renting a car in Iceland [closed]

I'm planning to rent a SUV from Reykjavik cars from Iceland but am confused with many options for insurance.

What are the insurance policies I do need to take to avoid any major issues?

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Does my credit card cover rental car insurance in Iceland?

It is very comforting to know we don't have to pay any foreign transaction fees, get access to lounges, and get car insurance all covered in our credit card! What is this? We know that each and every time we rent a car in Iceland or any other country, we will be covered and this is very reassuring.

Can you suspend car insurance while traveling?

Depending on your state's rules, you may be able to pause your car insurance if you won't be driving for an extended period of time. You might consider suspending car insurance if you're: Taking a long trip and you won't be driving.

Does my insurance cover rental cars abroad?

Most U.S. auto insurers won't cover you while you're driving abroad, with the possible exceptions of Canada and Mexico. So unless you have a credit card that offers rental car insurance, you'll probably need to purchase your insurance from the rental company itself.

Do I need gravel insurance in Iceland?

Gravel Protection insurance is must-have protection for your trip in Iceland if you plan to drive the ring road. Not all of the ring road is paved, so you will at some point drive on gravel roads.

The Complete Guide to Car Rental Insurance in Iceland

Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.

Images: Tomáš Malík, Tomáš Malík, Andrea Piacquadio, Mikhail Nilov