Insurance

9. The renter is always responsible for the following, regardless of insurance coverage: damage to windows, tires, headlights, exterior mirrors, chassis, interior of the car; wind damage to the doors, hinges, fenders; damage from water ingress, damage from animals, and any damage on F-roads. All insurance is void if the renter drives under the influence or recklessly. In such cases, the renter is fully liable for all damages.

10. Included in the rental price are liability Insurance, mandatory vehicle insurance, accident insurance for drivers and passengers, as well as TP (Theft Protection, covering vehicle theft, not personal belongings), SADW (Sand & Ash Damage Waiver, covering volcanic ash and sandstorm damage) and GP (Gravel Protection, covering damage from loose gravel).

11. Additionally, the following optional insurances are available for booking:

11a. CDW (Collision Damage Waiver): Reduces renter liability for a single self-inflicted collision. Liability is 1.000 EUR for cars and 1.700 EUR for campers. Coverage up to 7.000 EUR applies to both. Daily rate: 16 EUR for cars, 20 EUR for campers.

11b. SCDW (Super Collision Damage Waiver): Reduces renter liability for a single self-inflicted collision. The renter pays only 30% of window repair costs. Liability is 500 EUR for cars and 1.000 EUR for campers. Coverage up to 10.000 EUR for both. Price per day: 35 EUR for cars, 40 EUR for campers.

12. The liability amount under the insurance is taken as a payment authorization upon arrival.

13. Optional insurance can be added or upgraded at pickup.

Payment authorization

14. In the absence of optional insurance, a payment authorization will be processed from the customer’s credit/debit card at pick-up for the following amounts:

14a. Car (including roof tent, if applicable): 1700 EUR        

14b. Camper: 2500 EUR                   

15. The payment authorization will be held for up to 1 month after the vehicle's return and may be used to cover any damages, traffic tickets, tunnel fees or other charges incurred during the rental period.

Accident Reporting

16. The renter must notify the police and owner immediately after an accident and remain at the scene until the police arrive or a damage report is filed. A blank damage report, to be signed by both parties, is located in the glove box. If the accident is determined to be the renter’s fault, the insurance company imposes a mandatory processing fee of 300 EUR per incident. This amount may be deducted from the payment authorization.

Breakdown Assistance

17. The renter must contact the owner immediately in case of a breakdown. If within one hour of the owner's office, they may be required to return for inspection or a vehicle exchange. For wear and tear, the renter is not responsible for repair or transport costs. For user error, the owner will arrange assistance during opening hours - this is not a 24/7 service. The renter must pay for the service on the spot or the cost will be deducted from the payment authorization. The owner will organize assistance within 24 hours, meaning help will be arranged, not necessarily provided, within this time frame. Breakdowns on weekends/public holidays or outside the capital region may result in long waiting times due to the non-availability of replacement parts.

General Provisions

18. The following actions are strictly prohibited, and the renter will be fully responsible for any damages resulting from any of these actions:

18a. Driving off-road, in rivers, or on snow/ice banks

18b. Driving under the influence of alcohol, drugs, or other intoxicants

18c. Breaking Icelandic law or this rental agreement

18d. Major negligence or intentional wrongdoing

18e. Leaving the country with the vehicle

18f. Racing, transporting animals, or using fire in the vehicle, towing vehicles/trailers

18g. Smoking in the vehicle

18h. Sub-leasing or transporting passengers for payment

19. In case the vehicle is found abandoned or illegally parked, the owner or police may take possession without notice, and the renter shall be responsible for any costs incurred, including towing fees, storage charges, and any parking fees imposed by the police.

20. 2WD vehicles are strictly prohibited on F-roads. Driving on F-roads is entirely at the renter’s own risk, and all resulting damages must be covered in full by the renter. Driving on the following roads is strictly prohibited: F910, F894, F261, F232, F210 and Kjölur (road 35).

21. Any changes to this agreement must be in writing and signed by both parties. This agreement is governed by Icelandic law, and disputes may be taken to the Arbitration Committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.

Obligations of the renter

22. The driver shall be at least 18 years of age and shall abide by Icelandic law and regulations when driving.

23. The renter is responsible for informing the owner of any delay at pickup. If no prior notice is given, a waiting fee of 100 EUR per hour will apply. The owner will reserve the vehicle for up to 2 hours after the agreed pickup time. After this period, availability cannot be guaranteed. The owner monitors flight delays, which are not considered a failure to provide prior notice. However, if the renter is aware of a delay well before takeoff, they are required to inform the owner in advance. The renter must ensure that their phone is switched on.

24. The renter shall return the vehicle as stated below:

24a. With all items that were in or on the vehicle at the start of the rental term and in the same condition, except for normal wear and tear.

24b. At the location specified in the contract unless otherwise agreed upon. If the vehicle is left at a different location, the owner is authorized to charge the renter for pick-up.

24c. With the same amount of fuel as it had at the start of the rental. The renter is responsible for paying for any missing fuel.

24d. At the agreed-upon time. If returned late without the owner’s prior consent, a fee of 100 EUR per hour will apply for up to 2 hours. If the delay exceeds 2 hours, a full additional day’s rental fee will be added for the remainder of the day. For each additional day the vehicle is not returned, another full day’s rental fee will apply. The renter must ensure that their phone is switched on.

24e. Reasonably clean, both inside and outside. A cleaning fee of 50 EUR applies if the vehicle is not returned in a satisfactory condition.

25. The renter is not authorized to have repairs or changes made to the rental vehicle without the owner’s consent.

26. The renter has to use the right type of fuel for the vehicle and pays for the fuel and other costs for driving the vehicle during the rental term.

27. Parking fees must be paid at the location; failure to do so may result in a fine, which the renter is responsible for. The renter is also responsible for all traffic fines and other fees that may arise during the rental term.

28. If the renter loses the rental vehicle’s license plate the owner needs to be informed the same day. A fee applies.

29. The renter shall not use the rental vehicle for transporting passengers against payment, lend it or sub-lease it.

30. The renter is responsible for paying collection fees that may arise if the owner makes use of collection measures because of the renter’s failure to pay outstanding fees/fines.

31. In the event of an accident or damage to the rental vehicle caused by the renter, the renter is responsible for its potential transport/towing to the workshop. CDW and SCDW insurances have no impact.

32. The renter is liable for damage to transported items and items lost or left in the rental vehicle.

33. It is the renter's responsibility to obtain information on road conditions, weather forecasts and general warnings.

Obligations of the owner

34. The owner guarantees that the vehicle is in roadworthy condition and meets all applicable safety and legal requirements.

35. The owner will provide the rental vehicle at the agreed-upon date, time, and location.

36. The owner reserves the right to provide the renter with a similar vehicle to the one originally booked, should the booked vehicle be unavailable.

37. In the event of a breakdown, the owner will determine an appropriate workshop and arrange for repairs as quickly as possible.

38. If a breakdown results in immobilization due to normal wear and tear or other issues not caused by the renter, the owner will provide a replacement vehicle as soon as possible. The replacement vehicle will be of a comparable category to the originally rented vehicle.

39. Delays caused by breakdowns or repairs do not entitle the renter to compensation, refunds, or reimbursement of expenses such as accommodation, bookings, tours, or flights.

40. The owner reserves the right to limit or prohibit the use of the vehicle due to natural disasters, road conditions or other events that may pose a safety risk or endanger the vehicle.

41. The rental vehicle will be equipped with seasonally appropriate tires in accordance with Icelandic regulations.

42. The owner ensures to maintain valid liability insurance for their business operations.

43. The owner provides a 24/7 emergency contact by phone for assistance in the event of an emergency or breakdown.

44. If the rental ends before the agreed time as per the agreement, the owner is allowed to collect the full balance of the rental agreement.