Rental Agreement

Obligations of the Renter

  1. Signing
    1. The renter agrees to the provisions of this contract and has received a copy of the rental agreement and the terms and conditions.
    2. By signing the rental agreement and vehicle condition report the renter agrees that the vehicle and extra equipment he has received are in good condition.
    3. By signing the rental agreement, the renter consents to his credit card to be debited by rental company for the rental charges and any other costs payable by the renter to rental company according to the terms of the rental. The rental company is entitled to charge renter´s card for any compensation relating to the rental such as damages to the vehicle whilst the vehicle was in the renter’s contractual custody. The time of payment and whether it is to be paid in full or instalments is solely at the rental company’s discretion. The rental company reserves this right up to 12 months after the end of the rental agreement.
    4. The credit card provided at the beginning of the rental cannot be changed during the rental.

    5. Payment for damage to the vehicle may be paid with a different payment option.
    6. All major international credit cards are accepted for payment: MasterCard, Visa or American Express. Transaction fee of 1,5 percent is charged for payment via American Express and for other credit cards if accepted. Cash currency accepted on arrival; USD, EUR, GBP, ISK.
  2. Rental
    1. This rental agreement shall always be in the vehicle while at the responsibility of the renter.
    2. All rentals are charged on a 24-hour basis. A full day is charged for any portion of a 24+1-hour period used. The rental period starts when the Rental Agreement has been signed and the rental company has delivered the vehicle to the renter. The rental period ends when rental company has taken the vehicle for inspection after return. No refund is issued in case of late vehicle pickup and/or early drop-off.
    3. Vehicles are to be picked up at the reserved time, giving 2 hours late pick-up grace period. Should the renter fail to pick-up the car at the reserved time the reservation is automatically cancelled, and renter loses the right to pick-up the vehicle.
    4. The renter/driver shall be at least 20 years old. All drivers must have held their license for at least one year before the start of the rental. The driver shall abide by Icelandic law and regulations when driving.
    5. All named drivers must present an appropriate driver’s license, valid for the car group rented, valid national identity card or passport and valid major credit card in the renter's own name with available credit. Copies are not accepted. Driving license for vehicle group OVMR must include approval for category D.
    6. Renter/driver who is 20-25 years old are subject to an additional young driver fee.
    7. Credit card imprint will be taken at the start of all rentals for security reasons, even when a voucher covers the cost of the rental. Deposit amount will be placed on the credit card account to be owed by the rental company, at renter’s date of pickup and may hold as long as 30 days, depending on the issuing bank policy. The deposit hold may not be released in case the vehicle is returned damaged.
    8. Debit cards are accepted only if all insurances are purchased (SCDW, GP, TI, TP and SAP), and only debit cards that support authorization only transaction.
    9. Deposit
      1. The deposit amount if you have our CDW is 360.000 ISK for standard vehicles and 500.000 ISK for passenger vans, campervans and motorhomes (Class codes: *VMR, *VAR, *HMR, *HAR, *RMR and *RAR).
      2. The deposit amount if you have our SCDW is 100.000 ISK for standard vehicles and 360.000 ISK for passenger vans, campervans and motorhomes (Class codes: *VMR, *VAR, *HMR, *HAR, *RMR and *RAR).
  3. During the rental
    1. The vehicle shall be handled and driven with due care. Only those registered as drivers in this agreement and those who also fulfil the requirements in article 2.4 – 2.6 are permitted to drive the vehicle. If the vehicle is driven by a person who is not registered in this rental agreement, all insurance becomes null and void, in which case the renter is fully liable for the vehicle, and this liability includes damage it may sustain, damage it may cause others, items or vehicles, and the renter is obligated to pay such damage in full.
    2. The renter is financially responsible for all parking, speeding and traffic fines as well as any road tolls during the rental period. Rental company reserves the right to charge the renter for these fines as well as taking an administration fee for handling the payment and providing information to the appropriate authorities.
    3. In case of a collision or an accident, renter must immediately notify the appropriate police authorities as well as the rental company. The renter/driver must not leave the scene of the accident until he has notified the rental company and/or authorities and he must fill out a damage report form describing the incident. If another party is involved, they should contribute and sign on the damage report form. If the renter fails to report damage incurred during his rental, he is liable for any cost resulting from the accident. If renter requires a replacement vehicle, the rental company will make every effort to provide one once damage on the previous vehicle is fully processed. This, however, is no guarantee for the replacement vehicle and the rental company reserves the right to refuse a replacement vehicle or a vehicle in the same category as the damaged one, including but not limited to incidents when the collision or accident is caused by the reckless driving of the renter or additional driver, the renter refuses to pay for damage or refuses to sign necessary reports.
    4. The renter is not authorized to make repairs or changes to the car or its accessories or put the vehicle up as any kind of collateral or guarantee without the prior, written consent of rental company.
    5. The renter is not permitted to use the vehicle for the transportation of passengers for payment, to lend it to others, or to sublet it.
    6. 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.
    7. The number of kilometers (km) that the vehicle has travelled while this agreement is in effect is determined by the reading of the appropriate meter supplied by the manufacturer of the vehicle. The renter shall notify the rental company, without delay if the odometer is out of order or stops functioning during the rental period.
    8. The renter/driver may not do the following and has objective liability for damages resulting from the use of the car for which no compensation will be paid by the car insurance. This includes damages to the car and/or injury to passengers on the account of the following:
      1. Drive the car where prohibited by law, i.e. closed roads as specified by the Icelandic Road Administration (published at, off beaten tracks or marked roads, unmarked paths or tracks, beaches or other sandy areas, or any other trackless areas. Any renter/driver caught in breach of this article is subject to a fine of €2,000 by the rental company in addition to the fine charged by the police.
      2. Drive the car on mountain or highland roads, or roads marked “F” on a map or a road sign, including Kjalvegur (Road No. 35), Kaldidalur (Road No. 550), Jökulhálsleið (Road No. 570) and Sprengisandur (Road No. 26), unless the car is a four-wheel drive (4×4) or an all-wheel drive intended and accepted for such use by the rental company. Failure to comply with this article is subject to a fine of €2,000 by the rental company.
      3. Driving in/or across rivers and/or streams. This prohibition does not apply to vehicles which the rental company agrees are suitable for such driving, however the renter must take full responsibility for the consequences of such driving. Such driving is on the responsibility of the renter and the renter needs to make himself familiar with the insurance terms and conditions in that respect.
      4. Intentional acts, gross negligence or total carelessness of the driver.
      5. Operate the car under the influence of controlled or illegal substances. Failure to comply with this article is subject to a fine of €2,000 by the rental company in addition to the fine charged by the police. Furthermore, the renter has no right to the further use of the vehicle.
      6. Drive on banks of snow, on ice, on glaciers or on frozen lakes.
      7. Take the car anywhere outside of Iceland.
      8. Use of the car that is in breach of Icelandic law and/or the provisions of this rental agreement.
      9. Allow an unregistered driver to drive the car. Violation of this article is subject to a fine of €2,000 by the rental company.
  4. Returning the vehicle
    1. If the renter does not return the automobile at the time agreed upon in this lease or does not declare his intention to extend the lease, the rental company or the police are authorized to repossess the vehicle without further notice and at the renter’s cost. Extending the lease is dependent on the consent of the rental company. If the renter returns the vehicle 1 hour or later after the lease has expired, the rental company is authorized to demand up to 24-hours rental under the terms of this lease.
    2. The renter shall return the car in the following manner:
      1. With all accessories (including tires, keys, tools, documents and other items) in the same condition that they were in when received.
      2. At the predetermined time and date as stated on the rental agreement or sooner if the rental company requests it.
      3. To the rental company premises, unless otherwise agreed upon in writing. Failing to return the car directly to rental company venue is subject to a drop-off charge as per rental company’s current price list.
      4. With the fuel tank in the same level as stated on the inspection form. The missing fuel will be charged according to the rental company’s current price list.
      5. The interior of the vehicle should not be excessively dirty. Trash and personal belongings shall be removed from the vehicle. The exterior should not be excessively dirty, i.e. not covered in mud, tar or dirt. A car returned excessively dirty is subject to a cleaning fee according to the rental company’s current price list.
    3. If the renter returns the vehicle outside of business hours, he is responsible for the vehicle until a member of staff has examined the vehicle upon receiving the keys. Renter must:
      1. Leave any optional extras in the glove compartment (GPS, WIFI etc.).
      2. Park the vehicle in a safe and secure way at the return location.
      3. Leave the key in a secure key deposit box provided at the rental location. Renter is liable for the sum of any fines levied on the vehicle because of the way he left it.
      4. Renter must return the vehicle to the rental company’s premises unless rental company has agreed otherwise.
    1. The rental company guarantees that the car meets the set demands, and that all official registration standards are met.
    2. Rental company undertakes the responsibility to hold professional indemnity insurance, always.
    3. The rental company shall inform the renter of the content of this agreement, particularly as regards the obligations that the renter undertakes by signing it.
    4. The rental company shall inform renter to the best extent possible of Icelandic traffic regulations, traffic signs, and regulations banning off-road driving
    5. If the vehicle malfunctions due to normal wear and tear, rental company intends to provide another vehicle as soon as possible or ensure that repairs are made as soon as possible. This does not affect the rental payment or any other charges due during the rental period. In such cases, rental company is not liable for cost such as accommodation, airline tickets, or other laid out cost.
    6. Rental company is not responsible for the loss or damage to any property kept inside the vehicle.
    1. The insurance policy applies in Iceland during the time of rental.
    2. The rental fee includes the mandatory vehicle insurance, including liability insurance and accident insurance as well as accident insurance for the driver.
    3. The insurance policy includes third party liability for injury to persons and damage to property caused by the vehicle (i. Ábyrgðartrygging). Accident insurance for the driver is also included (i. Slysatrygging). These insurances are mandatory according to Icelandic laws and regulations.
    4. Voluntary coverage
      1. Collision damage Waiver (CDW)
        CDW is mandatory unless renter provides written proof from an insurance company, specially stating in English that coverage of collision insurance is effective in Iceland and valid for the duration of the rental agreement. Usage of personal third-party insurance is always on renter’s own responsibility. If CDW is not accepted, renter will be held fully responsible for the full value of the vehicle and extras in case of third-party insurance is not valid.
        1. CDW reduces the renter’s financial responsibility to a part, in case of damage to the vehicle, unless the damage is the result of theft, burglary or instances listed in articles 6.5.1 – 6.5.15 in this policy. The financial responsibility is limited to the deductible amount. The maximum deductible amount for CDW is 360.000 ISK for standard vehicles and 500.000 ISK for passenger vans, campervans and motorhomes (Class codes: *VMR, *VAR, *HMR, *HAR, *RMR and *RAR).
      2. Super Collision damage Waiver (SCDW) SCDW reduces the renter’s financial responsibility to a part of the vehicle, in case of damage to the vehicle, to the deductible amount. The maximum deductible amount for SCDW is 100.000 ISK for standard vehicles and 360.000 ISK for passenger vans, campervans and motorhomes (Class codes: *VMR, *VAR, *HMR, *HAR, *RMR and *RAR).
      3. Gravel protection (GP)
        Gravel protection covers the vehicle against damages to the windscreen and paint on the bumpers, hood and doors caused by a passing vehicle. Windscreen damages caused by gravel have the liability of 25.000 ISK.
      4. Sand and ash protection (SAAP)
        SAAP cover’s damage to the vehicle resulting from external objects such as; ash particles, sand or small rocks being blown into the vehicle in high winds. The policy covers damage to paint, glass, lights, plastic parts, tires and rims. The maximum deductible amount for SAAP is 360.000 ISK for all vehicle groups.
      5. Theft protection (TP)
        TP reduces the renter’s costs resulting from theft or burglary of the vehicle. The insurance does not cover the personal property of the renter or passenger(s) in the rental vehicle resulting from theft or burglary. When TP is not taken, liability can amount up to the full value of the vehicle resulting from theft. The renter/driver is responsible for reporting theft and burglary to the rental company and the police. The maximum deductible amount for TP is 360.000 ISK for all vehicle groups.
      6. Tire insurance (TI)
        TI fully covers the cost of tire repair or replacement in case of damage to the tires. Please note that this does not cover transport of the vehicle to a tire shop or serviced roadside assistance in case of tire damage
    5. The Collision damage waiver (CDW) insurance does not cover:
      1. Intentional damages or damages due to gross negligence on the part of the driver.
      2. Damages resulting from the driver being under the influence of controlled or illegal substances, or in any other way incapable of driving the vehicle in a safe manner.
      3. Damage caused by a race or test driving.
      4. Damage caused by war, revolution, civil unrest or riots.
      5. Damage inflicted by animals.
      6. Holes burned into seats, carpets, mats or other parts of the interior.
      7. Damage affecting only wheels, tires, suspension, batteries, glass (other than windows), radios, or loss by theft of parts of the vehicle and damage resulting from this.
      8. Damage caused by driving on rough roads, e.g. to the transmission, the drive or drive shaft, and other parts in or attached to the chassis. Damages to the chassis, or any part of the car, resulting from the vehicle scraping bottom on rough roads. The same applies to damages occurring when stones are thrown up, striking the underside of the car when being driven. The underside of the car is not insured.
      9. Damage resulting from driving in places where driving is banned, such as paths, tracks, banks of snow, ice, unbridged rivers or streams, beaches, places only accessible at low tide, or other trackless areas. The car is not insured when crossing rivers or driving in water of any kind. River crossing must be done with extreme care.
      10. Damage to the car caused by driving on mountain roads and roads marked F on a map or a road sign, including the Kjölur (road 35), Kaldidalur (road 550) and Sprengisandur (road 26) routes.
      11. Water damages to the car, its electrical system, accessories or engine.
      12. Damages caused by sand, gravel, ash, pumice, or other kind of earth material being blown onto the vehicle.
      13. Damages caused by wind blowing up the door while opening it.
      14. Damage caused by sea spray/seawater if the vehicle is transported by sea.  
      15. Damage to engine or other mechanical parts due to incorrect fuel use.
      16. If the rental company needs to collect the vehicle, or have it collected, owing to a collision or an accident, the renter shall bear all costs thereof according to the tariff of the rental company at each time. The recovery fee will be charged according to the rental company’s price list.
    1. If the renter cancels a reservation 30 days or earlier before planned pickup time the rental company will charge a cancellation fee which amounts to 25% of the total rental price.
    2. If the renter cancels 7-29 days before planned pickup time the rental company will charge a cancellation fee which amounts to 50% of the total rental price.
    3. If the renter cancels 0-6 days before planned pickup time or does not show up (no-show) the rental company will charge a cancellation fee which amounts to 100% of the total rental price.
    4. Amendment fee of 50 EUR, according to article 8.3.1, is charged in case of amendment plus the additional rental cost of the amendment. The rental company will not issue a refund in case the amendment results in a lower total rental price.
    1. Location fee
      1. A location fee of 62 EUR will apply to the total price of all applicable rentals (only applies to non-inclusive rentals for Economy Rent a Car reservations).
    2. One-way fee
      1. For vehicles picked up in Keflavík and dropped off in Reykjavík and vice versa, one-way fee of 7.000 ISK applies.
    3. Amendment fee
      1. The rental company reserves the right to charge renter an amendment fee of 7.000 ISK if the renter decides to change or modify the booking listed in article 7.1 – 7.4. This fee also applies if renter request to delay requested pick-up or drop-off time of one hour or more and/or pickup/drop-off the vehicle earlier/later than stated on the rental agreement of one hour or more.
    4. Out of hours fee
      1. Out of hours fee of 7.000 ISK applies for each pick-up/drop-off outside our operation hours. This fee applies between 6 PM and 5 AM. On public holidays the rental service is not operating and therefore the rental vehicle can neither be subject to pick-up nor drop-off.
    5. Processing fee
      1. If the renter or an additional driver commits traffic, parking, and/or road toll violation and the rental company needs to assist authorities with sending a fine to the renter, or any other special services requested by the renter a processing fee of 7.000 ISK will apply.
    6. Refill fee
      1. The renter is responsible to return the rental vehicle with the same amount of fuel and filled up, maximum 10km 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 eighth in addition to a 7.000 ISK refill fee. Fuel price per liter is according to the car rental current price list.
    7. Cleaning fee
      1. For vehicles that are returned dirty inside are subject to a 17.000 ISK cleaning fee. Cleaning service can be purchased on pickup for 8.000 ISK for those who want to save their time on cleaning the vehicle inside. Evidence of smoking in the car, such as stubs, ashes or odor, will result in a 17.000 ISK clean fee.
    8. Towing fee
      1. The renter is responsible for cost of towing/transporting an immobile and/or damaged rental vehicle. Transportation cost includes all kilometers driven from our office in Keflavík and back. This also applies when the vehicle is dropped off at an unauthorized location. The towing fee is 450 ISK per km, with a minimum fee of 30.000 ISK. Price can vary in case a third-party service provider is used and on the vehicle location.
    9. Damaged vehicle administration fee
      1. For administering damaged vehicles and billing for the repair cost, a 27.000 ISK administration fee will be charged in addition to the repair cost.
    10. Young driver fee
      1. A young driver fee of 1.400 ISK per day is applied for the renter and each and every additional driver who is 20-25 years old.
    11. Mileage
    12. Unlimited or limited to 100km/Day, indicated on the rental reservation/agreement. Per extra KM driven cost 50 ISK.
  9. General provision
    1. Additions and amendments to the conditions and provisions of this lease agreement shall be made in writing
    2. 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 rental company’s legal venue.
    3. Any 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.