Terms & Conditions

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 and all accessories (including tires and tools) in the condition they were in when received, except for normal wear due to use, on the date and time specified by this lease, to the lessor‘s premises, with a full tank of fuel, unless otherwise agreed on. If otherwise, the lessor will be authorized to refill the vehicle and charge the amount for the missing fuel with an additional processing fee.

3) If the lessee violates the terms of this contract or does not return the automobile at the time agreed according to lease, or does not declare his intention to extend the lease, the lessor or the police are authorized to repossess the vehicle without further notice and at the lessee´s cost. Extending the lease is dependent on the consent of the lessor. If the lessee returns the vehicle 1 hour or later after the lease has expired, the lessor is authorized to demand up to 24-hours rental under the terms of the lease. For every day that begins thereafter, the lessor may collect all charges as per the lessor’s pricelist.

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. The lessee is liable for damage resulting from the use of the automobile, for which no compensation will be paid by the vehicle‘s insurance company. This includes damages to the automobile and/or injury to passengers due to the following:

a) Off-road driving, for example, in paths and tracks, on beaches, in areas only accessible during low tide, or in other trackless areas.

b) Driving across rivers or any kind of water course.

Intentional acts or gross negligence.

c) Use of intoxicants by the driver.

d) Vehicle use that contravenes Icelandic law and/or the provisions of this lease.

f) Driving in banks of snow and ice.

5) Driving rental cars on roads or tracks with no road number is forbidden. Passenger cars and 2WD vehicles are strictly forbidden on roads marked with an F on public maps, as well as driving Kjölur (road 25), Dettifoss road east side (road 864) or Kaldidalur (road 550). Driving on F-roads is only allowed on 4x4 (four-wheel drive) jeeps that the lessor agrees as appropriate for being driven on such roads. A breach of this article authorizes the lessor to collect fines from the lessee, equaling the amount of self-risk as stated in the lessor‘s pricelist at any given time. The provision mentioned above on fines does not affect the lessee‘s liability regarding damage. It is the lessee‘s responsibility to obtain information on road conditions while traveling as well as weather forecasts and general warnings.

6) 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 have arrived.

a) If the lessee did not cause the accident and the cause is not to be found, the lessee is responsible for the damage to the lessee‘s automobile.

7) The lessee agrees to pay the lessor upon request.

a) A deposit amounting to the estimated cost of hiring the car.

b) Any and all expenses incurred by the lessor if he has to bring the vehicle back to his premises in the event that it has been left somewhere without supervision, without regard to the condition of the vehicle, the roads, or the weather. In the same manner, the lessee is responsible for all costs due to the transport of the vehicle in case of damage caused by the lessee.

8) 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 consent of the lessor.

9) The lessee is liable for all parking meter charges, road tolls, entrance fees, and fines for breaking traffic laws and accepts to pay up to a 30€ processing fee if the lessor has to process the payments

10) The lessee is liable for all parking meter charges, road tolls, entrance fees, and fines for breaking traffic laws and accepts to pay up to a 30€ processing fee if the lessor has to process the payments

11) The lessor reserves the right to collect a charge from the lessee, charged against his or her credit card; according to the lessor‘s pricelist, the lessor has to pay fines for the lessee and/or inform the authorities about the lessee because of traffic violations.

12) If the lessee ignores the lessor‘s notifications to bring the car in for an oil change, service inspection, or mandatory vehicle inspection, the lessor is permitted to collect a negligence charge according to the lessor‘s rates.

13) The lessee is not authorized to use the vehicle to transport passengers for payment, lend it to others or sublease it.

14)The lessee is obligated to return the vehicle with a full tank of gas.

15) If the rental ends before the agreed time as per the agreement, the lessor is allowed to collect the full balance of the rental agreement.

16) Lessee shall not smoke in the vehicle. Smoking or the smell of cigarettes in the car will result in a penalty fee of 300€.

Obligations of the Lessor:

17) The lessor ensures to supply the vehicle at the agreed time and to see that it meets the demands made for it.

18) If the vehicle malfunctions, the lessor is responsible to fix the vehicle as soon as possible.

19) Lessor shall inform the lessee of the terms of this agreement and especially what he accepts with his signature.

20) The lessor shall inform a foreign lessee regarding 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.

21) If the lessor wants to limit the use of the vehicle regarding its equipment and/or road conditions, this shall be done in writing when this lease is signed.

22) The lessor ensures to maintain valid liability insurance for his business operations. Insurance.

Insurance

23) The lease sum/rental fee includes mandatory vehicle insurance, including liability insurance and accident insurance for the driver and passengers.

24) Third-party liability insurance will consist of the amount stipulated by Icelandic law at any given time.

25) The lessee may purchase separate accident (CDW) insurance. This policy will specify the amount deductible in each instance of loss.

26) Each self-risk only applies to one incident. In instances of more damage that obviously did not occur at one and the same time, each self-risk CDW applies to only one incident.

27) No insurance covers incidents as stated below:

a) Damage affecting only wheels, suspension, batteries, glass (other than windows), radios, or loss by theft of parts of the vehicle and damage resulting from this.

b) Damage caused by animals, including collisions, bites, scratches, or any other physical harm inflicted by wildlife or domesticated animals, is not covered by insurance.

c) Damage caused by driving on rough roads to the vehicles transmission, drive, and 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 vehicle‘s underside during driving.

d) Damage caused by drivers not listed on the rental agreement or without a valid license. This includes any driver operating the vehicle without the lessor's explicit authorization or failing to meet the legal requirements for operating the vehicle class rented.

e) Damage caused by participating in racing, speed trials, or any form of test driving, including events conducted on closed tracks or public roads, is not covered by insurance.

f) Damage caused by sand, gravel, ash, pumice, or other kinds of earth material being blown onto the vehicle. Only Sand and Ash Protection (SAAP) covers such damage – please refer to General provisions.

g) Damage resulting from acts of war, armed conflict, revolution, civil unrest, riots, or any other disturbances involving organized violence is not covered.

h) Damage resulting from burns or scorching, including holes in seats, carpets, or mats caused by cigarettes, matches, or any other source of heat or fire, is not covered.

i) Damage resulting from driving in places where vehicle traffic 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.

j) Damage resulting from the driver being under the influence of alcohol, stimulants, or sedatives or in any other way incapable of driving the vehicle safely. k) Damage resulting from the use of incorrect fuel or fluids. This includes but is not limited to costs incurred for cleaning, repairing, or replacing parts damaged due to improper fuel, oil, or other fluid usage. Renters are required to strictly follow the instructions provided in the vehicle manual or by the lessor.

l) Damage resulting from the use of the vehicle in areas with height restrictions, such as parking structures or tunnels, where the vehicle’s dimensions exceed the allowable height, causing damage to the roof or any other part of the vehicle.

m) Damage to the door, fender, hinges, or any other part damaged due to the wind catching the doors.

n) Damages to passenger cars and/or 2WD vehicles caused by driving on roads marked with an F in public maps as well as driving on Kjölur (road 35), Kaldidalur (road 550), and Dettifoss road east side (road 864).

o) If the lessee is spotted and proven to be driving off-road, driving on F-roads with a non-4x4 vehicle, driving on closed roads or any roads not suitable for the vehicle currently driving, the lessee accepts to pay an additional fine of 500€.

p) If the vehicle is transported by sea, no compensation will be paid for damage caused by sea spray/seawater.

q) Intentional damage or damage due to gross negligence on the driver‘s part.

r) Lessor's loss due to the vehicle being stolen, including but not limited to associated administrative costs, loss of income, or additional charges arising from the theft. s) Loss of the vehicle's license plate, including any associated replacement costs or fines, is not covered by any insurance.

t) Towing of the vehicle under any circumstances is not covered by insurance, including situations involving snow, mud, sand, or any other conditions requiring recovery services.

u) Water damages to the vehicle, including damage caused by driving through rivers, flooded areas, or any other improper use of the vehicle in environments prone to water ingress, are not covered by insurance.

v) Cost for retrieving a damaged vehicle that is not returned to the predetermined drop-off location. The retrieval fee is ISK 400 per km outside of Reykjavik City, with a minimum charge of ISK 35,000. w) Replacement costs for lost, stolen, or damaged vehicle keys or key fobs, including costs for obtaining and programming a replacement, are not covered by insurance.

x) Damage caused by driving in extreme weather conditions, such as storms, heavy snow, or hail, against official weather warnings or advisories. Renters are responsible for checking and adhering to all weather-related restrictions and advice before driving.

28) The lessee has the option to purchase additional insurance to reduce liability in accordance with the terms of each policy (refer to exceptions in section 27).

29) If additional insurance is not purchased, the lessee will be responsible for any liability up to 3500€ (see exceptions section 27) and any potential towing fee.

30) The Lessee may purchase special Silver Insurance Plan (CDW + SCDW + TP + GP), Gold Insurance Plan (CDW + SCDW + TP + GP + ZERO) or the Platinum Insurance plan (CDW + SCDW + TP + GP + ZERO + SAAP + TI).

General Provisions

31) This lease agreement shall be kept in the lease's possession during the lease term

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

33) The lessee agrees to allow the lessor to keep contact details for marketing purposes.

34) Icelandic law applies to agreements based on the above terms. 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 lease agreement, they will be heard before the lessor‘s legal venue.

35) 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.

36) The lessee permits the lessor to charge for damages that occurred during the rental up to the insurance liability (see exceptions section 27). Lessee also gives permission to the rental company to sign the payment voucher in his name.

37) Insurance: Third-party liability insurance shall be equivalent to the amount stipulated by Icelandic law each time. The lessee is responsible for any and all damage to the car. By purchasing Collision Damage Waiver (CDW), the lessee can insure himself against the disbursement of the driver‘s liability; the amount of the own-risk fee is according to the lessor‘s pricelist at the given time and is also stated on the front side of this rental agreement. If the lessee has already purchased CDW insurance, he/she can purchase Super Collision Damage Waiver (SCDW) insurance and, by doing so, further lower the self-risk. Sand & Ash Damage Protection (SAAP) covers damage caused by sand or ash storm. Gravel Protection (GP) covers damages to the front windshield and headlights caused by stones or gravel. Theft Protection (TP) covers damages to the vehicle if it gets stolen when parked with locked doors, all windows closed, and keys not in. Theft Protection does not cover damages caused by breaking and entering, nor does it cover the loss of personal belongings of the renter or passengers. Zero Excess Cover (ZERO) only reduces the self-risk of the SCDW down to a null amount. Zero Excess Cover does not free the renter from any liability in the events where these car rental terms are violated. Self-risk of additional insurances is stated in the lessor's pricelist.

38) However, no insurance covers damages to the underside of the rented vehicle nor damages to driving through rivers or any kind of waterfall. CDW, SCDW, SAAP, GP, TP, or ZERO, do not cover such damages. Such damages are always the lessee‘s full responsibility.

Insurance self-risks and pricelist