Obligations of the Lessee:

  1. The lessee agrees to the provisions of this lease and has received a copy of it.
  2. The lessee will return the automobile:
    1. And all accessories and extras (including tires and tools) in the condition they were when received, except for normal wear due to use.
    2. On the date specified in this lease, unless otherwise agreed upon later.
    3. To the lessor’s premises, unless otherwise specified.
  3. If the lessee does not return the automobile at the time agreed upon in this lease or does not declare his intention to extend the lease, the lessor or the police is authorized to repossess the vehicle without further notice and at the lessee’s expense. Extending the lease is dependent upon availability and approval of the lessor. If the vehicle is returned 1 hour or more after the lease has expired, the lessor is authorized to charge 24-hours for each day the car is not returned.
  4. The vehicle shall be handled and driven carefully. Only those named as drivers on the first page of this agreement are authorized to drive the automobile.
  5. In the event of a collision or accident, the lessee shall immediately notify the appropriate police authorities as well as the lessor of the incident, and the lessee may not leave the scene before the police has arrived.
  6. The number of kilometres (km) that the vehicle will be driven while this lease is in force is determined by reading a normal odometer supplied with the vehicle by the manufacturer. The lessee shall notify the lessor as soon as possible if the odometer is out of order or stops functioning during the term of the lease.
  7. The lessor is not responsible for the disappearance of or damages to property that the lessee or any other party leaves in or transports with the vehicle.
  8. The lessee agrees to pay the lessor, upon request:
    1. Any and all expenses incurred by the lessor if he has to bring or tow the vehicle back to his premises, in the event that it has been left somewhere without supervision, regardless of the condition of the vehicle, the roads or the weather.
    2. For missing items.
  9. The lessee is not authorized to have repairs done or make changes to the vehicle or its accessories, without the prior consent of the lessor.
  10. The lessee is liable for all parking meter charges and fines for breaking traffic laws.
  11. The lessee is not authorized to use the vehicle for transporting passengers for payment (except for travel agencies), loan it to others, or sublease it.
  12. If drivers are under the influence of alcohol, stimulants or sedatives or in any other way incapable of driving the vehicle in a safe manner, this rental agreement is no longer valid. In this case the car will be towed at the renter's expense.
  13. The renter agrees the car rental has permission to get full personal details of the driver from local police and other Icelandic authorities.

Obligations of the Lessor

  1. The lessor will supply the vehicle at the agreed time and make sure it meets all the demands.
  2. If the vehicle malfunctions, the lessor shall supply the lessee with a comparable vehicle as soon as possible. If the damages are minor, the lessor is authorized to have repairs done on the vehicle.
  3. The lessor has informed the lessee of the content of this agreement, particularly as to the regards of the obligations that the lessee undertakes by signing it.
  4. The lessor has informed a foreign lessee about Icelandic traffic regulations, traffic signs, and regulations banning off-road driving.
  5. If the lessor wants to limit the use of the vehicle regarding its equipment and/or road conditions, this shall be done in writing before this lease is signed.
  6. The lessor will maintain valid liability insurance for his business operations.
  7. The lessor will send weather and road condition warnings to lessee during the rental by e-mail.
  8. In case of damage, the lessor is not obligated to provide another car to the lessee. Any damage that requires payment must be paid/completed before a new rental agreement can be started and the customer gets another car.
  9. Each deductible covers only one damage per rental. In case of an accident, the renter must add a second insurance to continue being covered for the same kind of damage.

Insurance and damages

  1. In the event of a collision or accident, the lessee shall immediately notify the appropriate police authorities as well as the lessor (even if they are fully insured) and the lessee may not leave the scene before the police has arrived. The renter agrees the car rental has permission to get full personal details of the driver from local police and other Icelandic authorities.
  2. Accident documents are always needed if there is any damage to the vehicle for any insurance to be valid, no matter who is responsible for the accident. Claims will not be handled/processed unless an accident statement is submitted to the car rental.
  3. If the renter is insured through a third-party insurance provider, such as a credit card or insurance company, they will have to settle with the car rental and then get reimbursed through their insurance provider.
  4. The rental includes mandatory vehicle insurance, that includes liability insurance and accident insurance for the driver and passengers. Third party liability insurance and Personal accident insurance shall be equivalent to the amount stipulated by Icelandic law at each time and this also applies to the amount prescribed by law on individual driver liability.
  5. Collision Damage Waiver is included in the rental price at Iceland car rental with deductible of 220.000 ISK. Should the renter choose to decline CDW insurance, they will be held fully liable for any damages caused.
  6. The lessee can add individual insurance; Super collision damage waiver, Gravel protection, Sand and ash protection, Tire insurance and Theft protection. The lessee can also add insurance packages, Silver, Gold or Platinum. Each policy will specify deductible amounts.
  7. None of the insurance cover:
    1. Damages caused to the underside and the top of the vehicle. This also applies if the vehicle rolls over..
    2. Damages caused when driving off road or through waters and rivers.
    3. Damages caused to the tires or the wheels of the car (although it is possible to buy tire insurance).
    4. Damages caused by the wind blowing up the door.
    5. Towing and rescue.
    6. Intentional damages or damages due to gross negligence.
    7. Damages resulting from drivers being under the influence of alcohol, stimulants or sedatives, or in any other way incapable of driving the vehicle in a safe manner.
    8. Damages due to race or test driving.
    9. Damages done by animals as well as hitting animals on the road while driving.
    10. Holes burned into seats, carpets, or mats.
    11. Parts of the car lost, either by theft or other circumstances.
    12. Damages caused by driving on rough roads.
    13. Damages resulting from driving in places where vehicle traffic is prohibited, such as paths, tracks, banks of snow, ice, unbridged rivers or streams, beaches, places only accessible at low tide, or other trackless areas.
    14. Damages caused when vehicle is transported by ferry at sea.
    15. In other instances, reference is made to general terms and conditions by Icelandic laws for accident insurance.
    16. Damage caused by putting on wrong fuel type.

General provisions

  1. Off-road driving is prohibited by law in Iceland and will result in fines.
  2. This lease agreement should always be kept in the vehicle.
  3. Icelandic law applies to agreements made based on the terms cited above. This includes any claims for compensation that might be made. It also applies to the basis for and the calculation of compensation. The same applies to claims for damages based on liability outside this agreement. If legal disputes arise concerning this lease agreement, they will be heard before the lessor’s legal venue.
  4. Disputes between the parties to this lease agreement can be submitted to the active Arbitration committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.

Service Fees

  1. The car rental charges the renter a service fee of 5.000 ISK in addition to all fines that result from renters use of the car such as:
    1. Parking fine: The renter pays the fine plus the 5.000 ISK service fee.
    2. Speeding fine: 5.000 ISK service fee to provide police information about the renter.
    3. Fuel tank not full: 5.000 ISK service fee plus the price of gas.
    4. Lost and found items: Shipping/postal fees plus the 5.000 ISK service fee.

Other Fees

    1. Extra cleaning on inside: 15.000 ISK cleaning fee.
    2. Smoking in the car: up to 30.000 ISK cleaning fee.
    3. Towing and rescue: 350 ISK per km outside of capital area/minimum of 35.000 ISK.
    4. Flat tire: Small car 19.800 ISK, medium car 25.680 ISK, large car 35.736 ISK.
    5. Vadlaheidi tunnel fee: 2.400 ISK service fee plus the fine of driving through the tunnel without paying.
    6. Fines for driving unauthorised cars on mountain roads.

Payments and guarantee of rental agreement

    1. The cardholder/renter and the card used to pay for the booking has to be present at pick up and the card that is used to pay online has to be the same card as is used to guarantee the rental agreement at pick up.
    2. If the renter will not be driving the car, we will list the driver as an extra driver. The renter and all drivers must be present to sign the rental agreement at pick up.
    3. If the card or card holder is not present at pick up, we will need another card to pay for the booking as well as guarantee the rental agreeement, otherwise we are not able to deliver the car. The cardholder of this new card will be the renter, their card will be charged for the amount of the booking and the older card will be refunded. 
  1. We offer two card options to guarantee the rental agreement at pick up. The card used must be valid for 100 days after the rental period ends.
    1. We will accept a credit card as a guarantee, no deposit is required. If the credit card is not clearly marked as a credit card our front desk staff is not authorised to accept it.
    2. We will accept a debit card, debit/credit card or prepaid credit card only if the card has a 15-16 digit number on the front, and the renter buys the Platinum Insurance package for the duration of the rental period.

Cancellation policy

Due to the high level of uncertainty in global tourism, many people have experienced cancelled travel-related services without being reimbursed. In the current climate we understand that customers are generally unwilling to take risks and pay in advance for services that later may not be required.
In view of these circumstances and to avoid the financial risk to our customers, we have decided to offer you the option to book your rental car without the need to prepay and with no cancellation fees.