Terms and conditions


• Total rental price: Vehicle rental price, insurances, extras, fees and other costs related to the lease.
• Rental Agreement/Lease: The legally binding contract that details the terms and conditions of rental you'll be required to agree to and sign when Lessor releases a rental vehicle to you.
• Lessee/Guarantor: You, the person holding rights of use of the rental vehicle under the terms specified in the rental agreement terms and conditions.
• Lessor: The car rental company, who is the owner of the rental vehicle that leases under the rental agreement to the Lessee.
• Excess amount: Also known as deductible amount or self-risk. The highest amount the lessee is responsible for paying in case of a damage, when it is covered by a waiver and applies only to damage costs.


1. General terms and conditions

1.1 Lessee/Driver Age and Driver's License: For all standard vehicles the Lessee and allowed additional drivers have to be at least 20 years old or not older than 80 years old and to present a full and valid driving license for the category they receive. For other categories mentioned here after, the minimum Lessee and allowed additional drivers age is 26 years old: L***, P***,*V***, ***I, ***E, ***H and ***C.
The license must be held for a minimum of one year and without major endorsements or penalty points. An International Driver's License (IDL) is required if the Lessee's/driver's national driving license is not in Roman alphabet (for example if the license is in Arabic, Greek, Russian,  Chinese, etc.). An international driver's license must be accompanied by the original domestic license of the driver. Digital documents are not accepted. Driving license for passenger vehicles that have more than 8 passengers (plus driver) must include approval for category D1 or D, depending on the vehicle.

1.2 Lessee/Driver Identification: The Lessee and/or driver must present a valid national identity card or passport at the time of pickup.

1.3 Payment Methods: Prepaid bookings are charged from the credit card holder's account as soon as the vehicle is reserved. Pay-later bookings are charged when vehicles are picked up, or within a few days after the end of the reserved pick-up day (for instance in the event of a no-show). The following international credit cards are accepted: American Express, MasterCard and Visa. A transaction fee of 2,5 percent is charged for payment via American Express. Cash currency accepted on arrival for payment purposes: USD, EUR, GBP, ISK.

1.4 Deposit/card imprint: Lessee's credit/debit card imprint will be taken at the start of all rentals for security reasons, even when a voucher covers the cost of the rental. No security deposit is taken from the card, we only need the card number on file. This card may be used, by the Lessor, to pay any additional cost at the end of the rental period such as damages to the vehicle, which are not covered by any insurance, excess amounts due to damage to the vehicle, penalty fees, fines for traffic violations, parking fines, missing fuel or any cost due to the rented vehicle as a result of the Lessee's use of the vehicle. Only credit/debit cards with 16 digits number printed on the physical card along with the expiry date under the lessee’s name are accepted. A card with an embossed number is not required. The Credit or Debit card kept on file should be valid for at least  90 days after the lease is finished. Prepaid cards and purchasing cards are not accepted.

1.5 Cancellation and Amendment Policy: 
If the Lessee cancels the reservation more than 48 hours earlier before booked pickup time the Lessor will fully refund the total prepaid amount. If the Lessee cancels the reservation within less than 48 hours earlier before booked pickup time the Lessee will receive no refund. An amendment fee of 50 EUR, according to article 3.3, is charged in case of amendment plus the additional rental cost of the amendment. Lessor will not issue a refund in case the amendment results in a lower total rental price.

1.6 TAX: Local value-added tax (VAT) is 24%. All fees under those terms and conditions include VAT.

1.7 Rental Period: All rentals are charged on a 24-hour basis. A full day is charged for any portion of a 24+2 hour period used. The rental period starts when the Rental Agreement has been signed and Lessor has delivered the vehicle to the Lessee. The rental period ends when Lessor has taken the vehicle for inspection after the return. The total rental price will be charged from booked pick up time, regardless of whether Lessee picks up the car on the requested time, until booked drop off time, or when the vehicle has been handed to the Lessor, whichever occurs later.

1.8 Mileage: In case of limited mileage, each excess kilometer is charged for 0.35 EUR. The free kilometers are stated on the rental agreement.

1.9 Cross-Border Travel and Ferries: All international cross-border travel is prohibited. Traveling with the rental vehicle overseas is allowed but on Lessee's liability. No insurance covers vehicle damages or losses during traveling overseas.

1.10 Breakdown Assistance: 24/7 breakdown assistance is available by calling our main line 00 354 511-5660. The cost of assistance depends on the Lessee's location, the severity of the problem and other factors. The Lessee will bear no cost for the provided assistance in case of vehicle breakdown due to normal wear and tear. This does not affect the rental payment or any other charges due during the rental period. In such cases, the rental company is not liable for costs such as accommodation, airline tickets, or other laid-out costs like lost tours, activities, transportation, etc.
If the vehicle malfunction is due to normal wear and tear, the rental company intends to provide another vehicle or ensure that repairs are made at the earliest convenience. If Lessee is involved in an accident, Lessor is neither obligated to provide a new vehicle nor refund for unused rental days. A replacement vehicle and the cost of towing the damaged vehicle back to the agreed return station as indicated on the lease, is not covered by this policy regardless of the liability. In case of a serious emergency please call Iceland's national emergency number: 112.


2. Rental vehicles

2.1 Pickup and Returning the Vehicle

2.1.1 Pickup: Vehicles are to be picked up on the reserved time, giving 2 hours grace period. Should the Lessee fail to pick up the car at the reserved time the reservation is automatically canceled and the Lessee loses the right to pick up the vehicle and to receive a refund.

2.1.2 Return: Vehicles are to be returned to the Lessor's rental locations agreed upon in the rental agreement at the agreed time also specified in the rental agreement, with a grace period of 15 minutes. Return at a location not pre-approved by Lessee is subject to a towing fee, according to article 3.5.7. Vehicles are to be returned clean internally but to prevent paint scratches, use a touchless car wash for an external wash.

2.2 Vehicle Inspection

2.2.1 Before rental: Before every rental, the rental vehicle is taken for accurate inspection. A vehicle condition report is filled out. Upon signature of the vehicle condition report both parties confirm that the condition report indicates the exact condition of the vehicle at the start of the rental period.

2.2.2 After return: After the rental vehicle is returned, according to article 2.1.2, it is inspected by the Lessor, or another entity on its behalf, as soon as possible. Before the inspection, the vehicle needs to be cleaned should the dirt affects the inspection, by the Lessor or another entity on its behalf. Vehicle Condition form(Confirmation receipt): The rental vehicle is to be inspected on drop-off and the Lessee will be provided with confirmation receipt of the vehicle condition report. The inspection process can only take place during office opening hours, which can be found on the website indicated on the rental agreement, and only when the rental vehicle is returned to Lessor´s office in Keflavík or Reykjavik. Damage Settlement: If a damage is found during inspection after return, which was not noted on the vehicle condition report (see article 2.2.1), the damage is photographed and identified in a damage evaluation performed by an independent automobile repair shop in accordance with the Cabas claims system.
All excess amounts, and damages not covered by insurance according to article 6, as well as additional fees according to article 3, extra days and other costs that are a result of the loss the lessor suffers due to the damage, will be charged according to the lessor's pricelist, which can be found on the website indicated on the rental agreement, to the Lessee's/guarantor's credit card without further notice. The damage settlement is sent to Lessee's email address as indicated on the lease.

2.3 Smoking: Smoking is not allowed in the rental vehicle.

2.4 Winter Tires: All our vehicles are equipped with winter tires from November 01 – 15 April.

2.5 Vehicle Types

2.5.1 Reserved Vehicle Type Not Available: Upon reservation, the Lessee may reserve a certain vehicle type. The Lessor however reserves the right to substitute vehicles when the reserved vehicle type is not available, either with a similar vehicle or one in a greater vehicle group without changes in the rental rate according to the ACRISS car classification code.

2.5.2 Driving on F roads, Kjölur (road 35) and Kaldidalur (road 550): Passengers vehicles, hybrid vehicles (including SUVs), campervans, motorhomes and all 2WD vehicles are not allowed to be driven on F roads, Kjölur (road 35, from road 37 until road 732), Kaldidalur (road 550), Öxi (road 939), road 586 and 864.
4WD SUVs (excluding hybrid SUVs) are allowed to be driven on Kjölur (road 35), Kaldidalur (road 550) and F roads, excluding F26, F66, F88, F206, F207, F208 (except from road 26 until road F224), F210, F223, F225, F228, F229, F232, F233, F235, F249, F261, F333, F337, F338, F578, F734, F752, F756, F821, F839, F881, F899, F902, F903, F905, F909, F910, F946 and F980.
Vehicles are not allowed to be driven on rough roads, illegal roads, closed roads or roads where vehicles can be subject to damage not covered by any insurance.

2.5.3 Off-road Driving: Driving off-road for all vehicle groups is illegal.
Should the restrictions in articles 2.5.2 and 2.5.3 be ignored all insurance of the rental will be deemed null and void. The driver will be held fully responsible in case of accidents and will bear all consequences, including the cost of repairing the damaged vehicle. The Lessee can also be subject to a penalty fee according to articles 3.5.1 and 3.5.2.

3. Fees

3.1 Location fee
A location fee of 62 EUR will apply to certain rentals (when stated in the booking process or in the voucher).

3.2 One-way and Out-of-Hours Fee
For vehicles picked up in Keflavík and dropped off in Reykjavík or vice versa, a one-way fee of 50 EUR applies. An extra fee of 50 EUR is charged for each pickup/drop-off out of office hours at Keflavík International Airport. On public holidays the rental services are not operating and therefore the rental vehicle can neither be subject to pickup nor drop-off. In the case of offering the service, a fee of 100 EUR per service is charged.

3.2 One-way fee
For vehicles picked up in Keflavík and dropped off in Reykjavík or vice versa, a one-way fee of 50 EUR applies.

3.3 Amendment fee
Lessor reserves the right to charge the Lessee an amendment fee of 30 EUR in case Lessee decides to change or modify the booking (see article 1.5).

3.4 Young and senior driver fee, 15 EUR per day: The renter and each additional driver who is 20-25 years old or 70 years old or older are subject to an additional fee of 15 EUR per day.

3.5 Penalty fees

3.5.1 Off-road driving, 1.000 EUR: The rental vehicle is not allowed to be driven off-road (see article 2.5.3). If the vehicle is driven off-road a 1.000 EUR penalty fee will be charged.

3.5.2 Driving a vehicle on forbidden roads, 1.000 EUR: If a rental vehicle, which is restricted from driving on certain roads according to the rental agreement (see article 2.5.2) is reported for driving on those roads a 1.000 EUR penalty fee will be charged.

3.5.3 Unauthorized additional driver, 1.000 EUR: If a rental vehicle is driven by an unauthorized additional driver a 1.000 EUR penalty fee will be charged.

3.5.4 Processing fee, 4.500 ISK: If Lessee or an additional driver (authorized or unauthorized) commits traffic, parking, and/or road toll violation and the Lessor needs to assist the authorities with sending a fine to the Lessee or has to collect the fee from the lessee due to the lessor being charged for it, a processing fee of 30 EUR will be charged per fine or violation.

3.5.5 Refill fee, 4.500 ISK and charge for extra fuel: 
The renter is responsible to return the rental vehicle with the same amount of fuel and filled up, a maximum of 15 km away from the drop-off location. The rental company will charge the renter for every missing eighth of a tank rounded out up to the next eight in addition to a 4.500 ISK refill fee. The fuel price per liter is according to the Lessor’s current price list.

3.5.6 Cleaning fee: For a motorhome returned dirty, with signs of smoking inside or not returned with an empty toilet or gray water tank, a 150 EUR cleaning fee will be charged. For other vehicle groups that are returned dirty or with signs of smoking inside, a 95 EUR cleaning fee will be charged.

3.5.7 Towing fee and other transportation and driving related cost, 4,5 EUR per km, with a minimum fee of 200 EUR: The Lessee will have to bear the cost of the transportation of an immobile and/or damaged rental vehicle, as well as a vehicle dropped off at an unauthorized location, back to the Lessor's office in Keflavík. The same fee will apply for any driving-related task for assisting the lessee. The towing fee does not apply in case of vehicle breakdown which the Lessee is not responsible for, for example in case of unforeseen mechanical and/or electrical vehicle breakdown.

3.5.8 Damaged vehicle administration fee, 170 EUR: For administering damaged vehicles, communicating with the insurance companies and billing for the repair cost, a 170 EUR administration fee will be charged.


4. Obligation of the Lessee

4.1 The Lessee agrees to the provisions of this lease and has received a copy of it.

4.2 The Lessee will return the vehicle :

a.    and all its accessories (including tires, tools and extras) in the condition they were in when received, with the exception of normal wear.
b.    on the date and time specified by this lease, unless otherwise agreed.
c.    to the agreed Lessor's premises, unless otherwise agreed.
d.    With the fuel tank at the same level as collected.
e.    In a clean condition.

4.3 If the Lessee does not return the vehicle at the time agreed upon in this rental agreement, or does not declare his intention to extend the rental period and receive confirmation, the Lessor and/or the police are authorized to repossess the vehicle without further notice, at the Lessee's cost. Extension of the lease is dependent on the consent of the Lessor. If the Lessee returns the rental vehicle 15 minutes or later after the lease has expired, the Lessor is authorized to demand payment from the Lessee which amounts to 24-hour rent under the terms of this lease.

4.4 Renter is responsible for planning his journey carefully so that he is aware of road conditions, weather forecast and any road closures or general warnings.

4.5 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 vehicle. The Lessee is liable for damage resulting from the use of the vehicle for which no compensation will be paid by the lease insurance or third-party liability. This includes damage to the vehicle and/or injury to passengers due to the following:
a.    off-road driving or driving on unauthorized roads.
b.    driving in or across rivers or any kind of water course.
c.    intentional acts or gross negligence.
d.    use of intoxicants by the driver.
e.    vehicle use that contravenes Icelandic law and/or the provisions of this lease.
f.    any use of the vehicle that a prudent driver would not do.

4.6 In the event of 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 have arrived. The Lessee shall ensure to complete an accident statement with the other involved vehicle, a statement which is to be signed by both parties and the lessee will keep one copy. The accident statement is to be sent to the Lessor immediately after the accident.

4.7 The number of kilometers (km) that the vehicle is 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 terms of the lease.

4.8 The Lessor is not responsible for the disappearance of or damage to property that the Lessee or any other party leaves in or on the vehicle or was at any point transported with the vehicle.

4.9 The Lessee agrees to pay the Lessor, upon request:
a.    the vehicle rental price and other extra services that the Lessee request or are obligatory as per this agreement.
b.    any and all expenses incurred by the Lessor if he has to bring the vehicle back to his premises, without regard to the condition of the vehicle, the roads or the weather.
4.10 The Lessee is not authorized to have repairs done or make changes to the vehicle or its accessories, or to put the vehicle up as any kind of security, without the prior written consent of the Lessor.
4.11 The Lessee is liable for all parking charges, entrance fees, road tolls, unpaid bills related to the use of the vehicle and fines for breaking traffic laws.
4.12 The Lessee is not authorized to use the vehicle to transport passengers in exchange for payment, loan the vehicle to others, or sublease it, without prior consent of the Lessor.


5. Obligations of the Lessor

5.1 The Lessor undertakes to supply the vehicle at the agreed time and to see that it meets the demands made for it.

5.2 If the vehicle malfunctions the Lessor shall supply the Lessee with a comparable vehicle as soon as possible (see article 1.10). If the malfunction is minor, the Lessor is authorized, with prior consent of the Lessee, to repair the vehicle.

5.3 The Lessor shall inform the Lessee of the content of this Rental agreement particularly as regards the obligations that the Lessee undertakes by signing it.

5.4 The Lessor shall inform a foreign Lessee of Icelandic traffic regulations, traffic signs, and regulations banning off-road driving. The Lessor shall particularly point out the dangers stemming from animals on the roads.

5.5 If the Lessor wants to limit the use of the vehicle with regard to its equipment and/or road conditions, this shall be done in writing when this Rental agreement is signed or the lessee informed in writing via e-mail during the rental.

5.6 The Lessor undertakes to maintain valid liability insurance for his business operations and rental vehicle.

6. Insurance

6.1 The lease sum/rental fee includes mandatory vehicle insurance Third Party Liability Insurance (TPL), including accident insurance for the driver and the owner (see article 6.3.1)

6.2 The Lessee may purchase additional insurance described in article 6.4.

6.3 Mandatory Insurance

6.3.1 Third Party Liability Insurance (TPL): When renting one of the Lessor´s vehicles the Lessee is covered by the mandatory Third Party Liability Insurance (TPL) stipulated by Icelandic law consisting of: Statutory liability insurance of vehicle: This insurance compensates for damage caused by the rented vehicle to a Third Party. Statutory accident insurance of driver and owner: This insurance compensates the driver when operating the rented vehicle for bodily damage.
Third-party liability insurance will consist of the amount stipulated by Icelandic law at any given time. For more details see the Mandatory Vehicle Insurance Terms provided by the lessor's insurance provider; Sjóvá-Almennar tryggingar hf hf.):

6.4. Additional insurance

6.4.1 Collision Damage Waiver (CDW): Collision Damage Waiver (CDW) is mandatory unless the Lessee provides proof from an insurance company, specially stating that coverage of collision insurance is effective in Iceland, valid for the duration of the rental agreement and covering up to the market value of the vehicle. Usage of personal third-party insurance is always on Lessee's own responsibility. If CDW is declined, Lessee will be held fully liable for the full value of the vehicle and extras in case of third-party insurance is not valid. The excess amount only applies to one incident. In instances of more damage that obviously did not occur at one and the same time, each excess amount CDW applies to only one incident. Collision Damage Waiver (CDW) reduces the Lessee's financial responsibility to a part, in case of damage to the vehicle. The financial responsibility is limited to the deductible amount per incident. The excess amount for CDW is 3.000 EUR for all vehicle groups. The Collision Damage Waiver (CDW) covers collision type damages. It does not cover :
a.    intentional damage, vandalism or damage due to gross negligence on the part of the driver.
b.    damage resulting from the driver being under the influence of alcohol, stimulants or sedatives, or in any other way incapable of driving the vehicle in a safe manner.
c.    damage due to race or test driving.
d.    damage due to war, revolution, civil unrest, riots.
e.    damage done by or with animals.
f.     holes burned into seats, carpets, or mats.
g.    damage affecting only wheels, tires, suspension, batteries, glass, radios, or loss by theft of parts of the vehicle and damage resulting from this.
h.    damage caused to the undercarriage of the vehicle and damages caused by driving on rough roads, to the vehicle’s transmission drive, other parts that are in or attached to the chassis; damage to the chassis resulting from the vehicle scraping bottom on rough roads as a result of ridges being left by road graders; stones lodged in the road surface or on the shoulder of the road. The same applies to damage occurring when stones are thrown up, striking the underside, engine parts or other mechanical parts of the vehicle during driving.
i.     damage resulting from driving in places where the vehicle is not allowed to, such as paths, tracks, banks of snow, ice, unbridged rivers or streams, beaches, places only accessible at low tide, or other trackless areas.
j.     damage caused by sand, gravel, ash, pumice, or other kinds of earth material being blown onto the vehicle.
k.    damages caused during transportation overseas.
l.    if the vehicle is driven by an unauthorized driver.
m.    damage caused by a door being windblown.
n.    damage to the clutch system and/or the transmission of the vehicle.
o.     in other instances, in which the type of collision is not describing the cause of damage.

6.4.2 Theft Waiver (TW): Theft Waiver (TW) reduces the Lessee's financial responsibility for the total theft of the vehicle to the excess amount. The excess amount for TW is 3.000 EUR for all vehicle groups.

6.4.3 Sand and Ash Protection (SAAP): Sand and Ash Protection (SAAP) reduces the Lessee's financial responsibility for damages caused by erosion, sandstorm or ash, which can, for instance, damage the paint on vehicles, to the deductible amount. The excess amount for SAAP is 3.000 EUR for all vehicle groups. In case of a forecasted storm, the renter is responsible for avoiding an area of danger in order for this coverage to be valid.

6.4.4 Super Collision Damage Waiver (SCDW): Super Collision Damage Waiver (SCDW) reduces the Lessee's financial responsibility of the CDW to a part, in case of collision type damages to the vehicle, to the excess amount, per incident. The excess amount for SCDW is 1.500 EUR for all vehicle groups.. The restrictions specified in article apply also to the SCDW.

6.4.5 Gravel Protection (GP): Gravel Protection (GP) covers damage to the windshield, front lights, front bumper, hood, and the front fenders of the rented vehicle due to gravel being thrown from other vehicles when passing them. Lessee's liability is taken to zero when this occurs. Lessee’s liability is taken to zero for the mentioned body damages and the excess amount for the windshield is taken down to 170 EUR.

6.4.6 Tire insurance (TI): Tire Insurance (TI) covers the cost of tire repair or replacement of one tire in case of damage to the tire only. Please note that this does not cover the transport of the vehicle to a tire shop, roadside assistance, emergency fees or damaged rim in case of tire damage.

6.4.7 Insurance packages: The lessee can select between packages that include the above coverage and is always subject to the terms above, as listed in paragraph 6.4.


7. General provisions

7.1 This lease agreement shall always be kept in the vehicle during the term of the lease.

7.2 Additions and amendments to the conditions and provisions of the lease agreement shall be made in writing.

7.3 Icelandic law applies to agreements made on the basis of the terms cited above. This includes any claims for compensation that might be made. This applies both 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 Rental agreement, they will be heard before the Lessor’s legal venue.

7.4 It should be pointed out that disputes between the parties to this Rental agreement can be submitted to the active Arbitration committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.


8 GPS Tracking Devices
The following data points may be collected from the Lessee rental vehicle tracked by the Lessor through services provided by a Telematics Service Provider: Position, speed, acceleration, impact data (location, g-force and direction of impact), vehicle data and the identifier of the device in the vehicle. This data is collected for the following reasons: Detection and prevention of loss or theft of the company vehicles, management of insurance claims, identification of unauthorized vehicle movements or usage, monitoring and improving customer driving behavior, management of vehicle inventory and for vehicle service reasons. Vehicles equipped with a vehicle tracker will have a sticker inside especially stating that the vehicle is being tracked. Information about the processing of personal data can be found in Lessor’s Privacy Policy.


9. Limitation of Responsibilities
Lessor will make all reasonable efforts to keep the information on Lessor's website and in published material accurate and up-to-date. Nevertheless, some information available may be technically inexact or contain typing errors. Without prejudice to its obligations under the general terms and conditions applicable to the rental agreement, Lessor does not declare nor guarantee the completeness or reliability of this information and disclaims responsibility for any errors, omissions or interruption and similarly, disclaims responsibility for any change or misspelling in the content or damage resulting from a system error, computer virus or a third party error or intruder.