Car Rental Terms and Conditions:

1) The driver shall be at least 20 years of age and shall have held a driver’s license for at least one year before renting a vehicle. The Renter shall abide by Icelandic law and regulations when driving. The vehicle is under the liability of the Renter during the rental period, which, under this rental agreement, can never be less than until the vehicle has been registered as returned in the Lessor’s system. Registration of return can only take place during opening hours.

2) The Renter shall return the vehicle as stated below:

  • With all attachments that were in or on the vehicle upon rental, in the same condition as upon reception, except for normal wear and tear from use. If something is missing the Renter agrees that the cost of individual items that are absent when the vehicle is returned will be charged to their credit card which the Renter presented at the beginning of the rent as the method of payment. The same applies if extra parts that came with the vehicle are missing upon the vehicle’s return or if returned in an unsatisfactory condition, i.e. these items will be charged to the credit card presented at the beginning of the rental.
  • At the predetermined time as stated on the front page of the rental agreement or sooner if the Lessor demands it, e.g. violation of these terms and conditions.
  • At the location that was previously agreed upon. If at the end of the rental period the vehicle is not left where previously agreed, the Lessor is authorized to charge the renter for pick-up of the vehicle. 

3) If the Renter does not return the vehicle at the correct time according to this rental agreement, or negotiates extended rental with the Lessor’s office, the Lessor or the police are authorized to take possession of the vehicle without further notice at the Renter’s expense. Extended rental is subject to the consent of the Lessor. If the Renter returns the vehicle 1 hour or later after the expiry of the rental period, the Lessor is authorized to collect as much as a one-day rent according to this rental agreement. For every day that begins thereafter, the Lessor may collect all charges as per the price list of the Lessor.

4) The vehicle shall be carefully driven. Only persons who are registered with the Lessor as the drivers and who meet the provisions of Item 2 above are authorized to drive the rented vehicle. If the vehicle is driven by a person who is not registered in this rental agreement, all insurances, waivers, and protections become null and void, in which instance the Renter is fully liable for the vehicle, for the damage it may sustain, damage it may cause others, items or vehicles, and obligates the renter to pay such damage in full.

5) The Sentry Mode can not be turned off during the rental period. Recordings may be watched by the Fleet Manager in case of damage to the car to determine its origin. 

6) The Renter has objective liability in respect of the vehicle towards the Lessor, for example, because of damage sustained by the Lessor.

7) The Renter has objective liability in respect of the Lessor for damage derived from the use of the vehicle, including damage to passengers or other persons.

8) The Renter is liable for damage derived from the use of the vehicle, including damage to the vehicle and/or passengers that may be traced to the following factors:

  1. Off-road driving.
  2. Driving in rivers or any kind of watercourses. 
  3. Intentional actions or major negligence. 
  4. Driver’s usage of intoxicants. 
  5. Usage of the vehicle that is in breach of Icelandic law and/or the provisions of this rental agreement. 

9) The Renter is unauthorized to use the vehicle for:

  1. Off-road driving, for example on closed roads, in paths and tracks, on beaches, in areas only accessible during low tide, or in other trackless areas.
  2. Driving on roads that are marked with an F on official maps, as well as driving the Kjölur (nr. 35) or Kaldidalur (nr. 550) roads, and roads to Landmannalaugar (nr. 208). A breach of this Article authorizes the Lessor to collect a fee from the Renter, according to the price list of the Lessor at any given time. The aforementioned provision on fees does not affect the Renter’s liability regarding damage. 
  3. Driving under the influence of any intoxicants. 
  4. Driving in or across rivers or any kind of watercourses. Such driving is totally the responsibility of the Renter.
  5. Driving in banks of snow and ice.

10) In the instance of a collision or another accident, the Renter shall immediately notify the police, as well as the Lessor. The Renter may not leave the venue of collision or accident until this has been done and until the police have arrived, or a damage report has been prepared. In cases of damage to the rental vehicle, the provision of a replacement vehicle is entirely the decision of the Lessor.

11) The Renter is not authorized to have repairs or changes made to the vehicle and its attachments or to place them as guarantees without the prior written consent of the Lessor.

12) The Renter is responsible for all parking tickets and fines for traffic violations. The Lessor reserves the right to collect an administration fee from the Renter, charged to their credit card, according to the Lessor’s price list, if it turns out that the Lessor has to pay parking tickets for the Renter and/or inform the authorities about the Renter because of traffic violations.

14) The Renter is not authorized to use the vehicle for transporting passengers against payment, lend it or sub-lease it.

15) The Renter shall pay all collection costs that fall on the Lessor if the Lessor launches collection measures because of this rental agreement.

16) The Renter is responsible for all expenses derived from transporting the vehicle to The Lessor’s location, as decided by the Lessor, in the event of transportation because of an accident or damage to the vehicle, or for other reasons. In such instances, the collision damage waiver on insurance has no impact.

Obligations of the Lessor:

17) The Lessor guarantees that the vehicle meets the requirements made on it.

18) The vehicle shall be made available to the Renter with a fully charged battery.

19) If the vehicle malfunctions because of normal wear and tear, or for other reasons for which the Renter cannot be at fault, the Lessor shall make another vehicle available to the Renter as soon as possible, or see to it that the repairs are made as soon as possible at the location decided by The Lessor. The aforementioned does not affect the payment of the rent or other which the Renter should pay according to this rental agreement. The Lessor pays no compensation in the instances stated above, either because of accommodation or other.

20) The Lessor shall to the extent possible inform foreign Renters about the Icelandic traffic regulations, the traffic signs, and the rules prohibiting off-road driving, as well as the hazards caused by the presence of animals on the roads.

21) The Lessor guarantees to always have valid liability insurance for its operation.

22) The Lessor is not liable for the disappearance of items or damage to them, which the Renter or another party kept or transported in or on the vehicle.


23) The rental fee includes the mandatory vehicle insurance, i.e. liability insurance and accident insurance for the driver and the owner.

24) Third-party liability insurance and accident insurance for the driver are to the amount stipulated by Icelandic law at any given time. The Renter’s own-risk because of damage to the rented vehicle may amount to the full value of the vehicle.

25) The payment of the insurance does not reduce the Renter’s financial liability because of damage to the vehicle in the following instances:

  1. Intentional damage or damage resulting from major negligence by the driver. 
  2. Damage resulting from the driver being under the influence of intoxicants or is in other respects incapable of controlling the vehicle in a safe manner.
  3. Damage resulting from racing or test-driving. 
  4. Damage caused by animals. 
  5. Holes burned into the seats, carpet, or mats. 
  6. Damage affecting only wheels, tires, suspension, batteries, glass, radio equipment, as well as damage due to the theft of individual parts of the vehicle and damage derived thereof. 
  7. Damage caused by driving on rough roads, for example, to the transmission, the transmission shaft, oil pan or engine or other parts in or on the chassis of the vehicle, damage to the chassis of the vehicle caused by the vehicle bumping against uneven roads, for example, road shoulders caused by motor graders, rocks lodged in gravel roads or by the edges of roads. The same applies to damage resulting from loose rocks hitting the vehicle or the bottom of the vehicle or into the radiator when being driven. 
  8. Damage resulting from the vehicle being driven in areas where driving is banned, for example, driving on paths, tracks, banks of snow, ice over or in unbridged rivers, streams or other watercourses, on beaches, places that are only accessible during low tide or other trackless areas. 
  9. Damage to passenger vehicle caused by driving on roads marked with an F in public maps and on the Kjölur (nr. 35)and Kaldidalur (nr. 550) roads, and roads to Landmannalaugar (nr. 208), 
  10. Damage to the vehicle caused by sand, gravel, ash, pumice, or other kinds of earth materials being blown against it. 
  11. Water damage to the vehicle.

General provisions:

26) The Lessor is authorized to take possession of the vehicle at their discretion and without notice if it has been illegally parked or has been used in a manner that does not conform to this rental agreement or law and regulations, or if the vehicle appears to be abandoned, or if the renter has any outstanding debts to the lessor.

27) In instances where the Lessor exercises his right according to the aforementioned, this by no means affects the payment of the rental fee or other which the Renter shall pay according to this rental agreement. If, however, the vehicle is re-rented to a third party within the agreed rental period the amount of the rental fee shall be deducted to the extent where the rental periods of the Renter and the third party coincide. The Lessor decides unilaterally at any given time whether the Renter will be provided with another vehicle instead of the rented one, i.e. in instances of any breach of the rental agreement, accidents, or damages. If the Renter receives another vehicle, the Renter will receive no reimbursement of the balance.

28) If the vehicle is badly treated, used to transport pets or if someone smokes in the vehicle the Renter will be liable for a cleaning fee according to the Lessor price list.

29) The Lessor is authorized to charge to the Renter’s credit card the rental fee and other charges the Renter should pay according to this rental agreement, including payments because of damage to a vehicle while in the possession of the Renter, and also because of lost rental days because of damage, taking into consideration the utilization ratio of the Lessors fleet. The Lessor alone shall hold the power to decide when this is done and whether it is done in one transaction or not. This right remains intact for six (6) months after the vehicle has been returned to The Lessor. The Renter’s signature to this rental agreement equals the Renter’s signature to credit card withdrawals because of the payments that The Lessor charges to the Renter’s credit card and which The Lessor should rightfully receive on grounds of the provisions of this rental agreement.

30) The Renter confirms with his signature to this rental agreement and to the rental vehicle condition report form that he received the vehicle and attachments in sound condition.

31) Any amendments or annexes to this rental agreement are subject to being made in writing and confirmed with the signatures of both parties to the agreement.

32) This rental agreement and agreements entered into on grounds of the aforementioned provisions, as well as claims for damages that may subsequently be made, fall under the auspices of Icelandic law. This applies both to the grounds and calculation of compensation. The same applies to claims for damages on grounds of liability outside of agreements. A case arising over this agreement shall only be filed at the legal venue of the Lessor.

33) The Renter agrees by signing this agreement, should a vehicle sustain damage or loss of which the Renter is responsible for, that the following documents shall be considered as sufficient evidence regarding the cost and extent of such damage or loss, whether a civil case is filed or not:

1) Signed Rental Agreement

2) A vehicle condition report accepted and signed by Renter at the start of rental

3) A vehicle condition report filled in at the end of the rental

4) The Lessors estimation of the damage cost

5) Photograph/s of damage/s on the vehicle.

34) Matters of disagreement between the parties to this rental agreement may be brought before the Arbitration Committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.