Terms and conditions                                    

Age requirement and drivers license

The registered driver/s must be at least 20 years of age and have held a full drivers license for at least 12 months. Here below you could see the minimum age and models:
At least 20 years old: Hyundai i10, Hyundai i20 Hyundai i30, Chevrolet Lacetti and Campervan Play.
At least 22 years old: Suzuki Jimny, Suzuki Grand Vitara, Ford Escape, Jeep Patriot, Dacia Duster,
Ford Escape, Nissan Qashqai, Nissan X-Trail, Grand Cherokee, Dodge Durango, Toyota Land Cruiser, motorcyles and every campervan except Campervan Play.
At least 25 years old: Renault Trafic 9 seater, Toyota Hiace 9 seater, Jeep Wrangler, Land Rover Defender and every motorhome.
Credit Card Imprint

All rentals are subject to the full rental agreement terms and conditions at the time of rental. A 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. This credit card imprint may be used to pay all extra charges as extra insurance hired at arrival, parking fines, damages or any cost due to the rented car as a result of the renters use of the car.

Car Types

Car rental provider reserves the right to substitute vehicles when the reserved car type is not available, either with similar car or higher class.

The provider will deliver the car with a full tank, the car should be returned with a full tank. If the fuel tank is less than full we will fill it up and charge for the extra fuel in addition to a small refill fee.


Local value added tax in Iceland (VAT) 24% is included in all prices.


Normally we will charge your credit card 15-17% of total rental when booking the car online and the rest by picking up the car in Iceland. 

For any questions info@islandiacar.com.

Cancellation policy

There is no cancellation fee if the cancellation is made at least 15 days prior to the beginning of the rental. If the cancellation is made less than 15 days prior to the beginning of the rental the cancellation fee will be the same as booking confirmationIn case of cancellation there is always a small commission free from card entities.

The minimum notice we require for shortening the rental period of a vehicle is 48h. We cannot provide a refund for unused time (this applies both to the late collection and/or early return of a vehicle) if insufficient notice was given or when the rental is running. This is due to the fact that we would be unable to rent out this vehicle again. In case of a no-show we charge the amount of the booking fee.


Third party liability is equivalent to the amount stipulated by Icelandic law at each time. This also applies to the amount of individual driver liability. Third party coverage and personal accident insurance is included in your rental by Icelandic law.

Below you can see the description of every insurance possibilities and the value of own risk fee for 2014 for CDW (included), SCDW and GP, TP and SAAP (in case is included) in each case:

Collision Damage Waiver (CDW): Normally by purchasing CDW the lessee can insure himself against the disbursement of the driver liability; the amount of the own-risk fee is according to lessor´s pricelist at given time and is stated on the front side of the rental agreement, CDW is included in the price of all our rentals.

However, no insurance covers damages to the underside of the rented vehicle, tires or damages due to driving through rivers or any kind of waterways. CDW and SCDW do not cover such damages. Such damages are always the lessee’s full responsibility. Please see more about insurance in the articles here below "Rental agreement".

Self-risk excess CDW (included):

350.000 ISKAll cars.

Super Collision Damage Waiver SCDW (recommendable)

In Iceland it is not possible to hire a full insurance whose own-risk fee is 0 ISK. The lessee is able to purchase a Super Collision Damage Waiver (SCDW) and by doing so further lower the own-risk.

However, no insurance covers damages to the underside of the rented vehicle, tires or damages due to driving through rivers or any kind of waterways. CDW and SCDW do not cover such damages. Such damages are always the lessee’s full responsibility. Please see more about insurance in the articles here below "Rental agreement".

Price 2000 to 2500 ISK/per day (depending on the type of vehicle)

Self-risk excess SCDW:

90.000 ISK / 120.000 ISK (on 4x4): Hyundai i10, Hyundai i20, Hyundai i30, Chevrolet Lacetti, Campervan Play, Suzuki Jimny, Suzuki Grand Vitara, Ford Escape, Jeep Patriot, Dacia Duster, Nissan Qashqai, Hyundai Tucson, Grand Cherokee, Dodge Durango, Ford Explorer and Toyota Land Cruiser.

175.000 ISK: Jeep Wrangler, Land Rover Defender, Renault Trafic 9 seater, Toyota Hiace 9 seater, Motorcycles, Campervans and Motorhome

Gravel Protection GP (recommendable):

The lessee can purchase GP; this protection includes damage to windscreen, headlights, paintwork and other parts of the car, damaged by gravel that gets thrown at the vehicle by passing cars or oncoming traffic.

Price 1300 ISK/per day

In case of damage due to gravel:

          Self-risk excess with GP: ISK 20000
          Self-risk excess without GP: same as above in each case for CDW or SCDW.

*Not available for motorhomes, campervans (except Campervan Play) and motorcycles at the moment.

Theft Protection TP:

The lessee can purchase TP; this protection insures the lessee from liability should the vehicle be stolen. It is noted that in case of gross negligence on behalf of the lessee that leads to theft of the vehicle, the TP is void!?

Price 900 ISK/per day

In case of damage due to theft:

Self-risk excess with TP: 0€ 

Self-risk excess without TP: same as above in each case for CDW and SCDW.
* Not available for motorhomes, campervans (except Campervan Play) and motorcycles at the moment.

Sand and ash protection SAAP: some car rental companies started offering this insurance because sand and ash can cause huge damage to the cars and all the cost has fallen on the renter, until now.
By purchasing SAAP the self risk in case of damage from sand and ash is lowered.

Price 1350 ISK/per day

            Self-risk excess with SAAP: same than self-risk excess with SCDW in each case.

           Self-risk excess without SAAP: all the cost of the damage.

*Not available for motorhomes, campervans (Campervan Play) and motorcycles at the moment.

During the rental period the if the battery of the vehicle you are renting goes flat through negligence, and you decide to utilise the breakdown service to charge it  then you will be responsible for all of the costs incurred.

Service fee

For picking up a damaged car there is a fee of 350 ISK per/km outside Reykjavik and the surrounding area (minimum fee ISK 25.000). There is a handling fee of 10.000 ISK for all fines or charges that result from the renters use of the car. The car rental company will charge the renter for fines and charges plus the aforementioned handling fee. Smoking inside the vehicle will result in a cleaning fee in the amount of 35.000 ISK.

Terms and Conditions The currency converter is for information purposes only and should not be relied upon as accurate and real time; actual rates may vary. Obvious errors and mistakes (including misprints) are not binding.


Obligations of the lessor:

  1. The lessee agrees to the provisions of this lease and has received a copy of it.
  2. The lessee will return the automobile:
    1. And all accessories (including tires and tools) in the condition they were in when received, with the exception of normal wear due to use,
    2. On the date specified by this lease, unless otherwise agreed later,
    3. To the lessor's premises, unless otherwise agreed.
  3. If the lessee does not return the automobile at the time agreed upon in this 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 this lease.
  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 use of the automobile for which no compensation will be paid by the vehicle's insurance company. This includes damage to the automobile and/or injury to passengers due to the following:
    1. Off-road driving,
    2. Driving across rivers or any kind of water course,
    3. Intentional acts or gross negligence,
    4. Use of intoxicants by the driver,
    5. Vehicle use that contravenes Icelandic law and/or the provisions of this lease.
  5. 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.
  6. 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 term of the lease.
  7. The lessor is not responsible for the disappearance of or damage to property that the lessee or any other party leaves in or transports with the vehicle.
  8. The lessee agrees to pay the lessor, upon request:
    1. A deposit amounting to the estimated cost of hiring the car,
    2. 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.
  9. 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.
  10. The lessee is liable for all parking meter charges and fines for breaking traffic laws.
  11. The lessee is not authorized to use the vehicle to transport passengers for payment, loan it to others, or sublease it.

Obligations of the Lessee:

  1. The lessor undertakes to supply the vehicle at the agreed time and to see that it meets the demands made for it.
  2. If the vehicle malfunctions, the lessor shall supply the lessee with a comparable vehicle as soon as possible. If the damage is minor, the lessor is authorized to have repairs done on the vehicle after obtaining the lessee's consent.
  3. The lessor shall inform the lessee of the content of this agreement, particularly as regards the obligations that the lessee undertakes by signing it.
  4. 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.
  5. If the lessor wants to limit use of the vehicle with regard to its equipment and/or road conditions, this shall be done in writing when this lease is signed.
  6. The lessor undertakes to maintain valid liability insurance for his business operations.


  1. The lease sum/rental fee includes mandatory vehicle insurance, including liability insurance and accident insurance for the driver and the owner.
  2. Third-party liability insurance will consist of the amount stipulated by Icelandic law at any given time.
  3. The lessee can purchase separate accident (all-risks) insurance. This policy will specify the amount deductible in each instance of loss.
  4. The CDW and SCDW do not cover the following:
    1. Intentional damage or damage due to gross negligence on the part of the driver,
    2. 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,
    3. Damage due to race or test driving,
    4. Damage due to war, revolution, civil unrest, riots,
    5. Damage done by animals,
    6. Holes burned into seats, carpets, or mats,
    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 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 of the vehicle during driving,
    9. 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. However, compensation will be paid for damage if the driver is forced to leave the road, for example, due to road repairs.
    10. Damage caused by sand, gravel, ash, pumice, or other kinds of earth material being blown onto the vehicle.
    11. If the vehicle is transported by sea, no compensation will be paid for damage caused by sea spray/seawater.
    12. In other instances, reference is made to the general conditions for CDW and SCDW insurance.
  5. The lessee may purchase special Super collision damage waiver (SCDW) Gravel protection (GP), Theft protection (TP) and Sand and ash protection (SAAP).

General provisions:

  1. This lease agreement shall always be kept in the vehicle during the term of the lease.
  2. Additions and amendments to the conditions and provisions of this lease agreement shall be made in writing.
  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 lease agreement, they will be heard before the lessor's legal venue.
  4. It should be pointed out that 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.
  5. Islandiacar Travel ehf is also a booking agent operating for a number of rental providers. Upon collection of the vehicle the customer will sign a rental agreement with the rental provider. The customer needs to be aware that they are accepting the terms and conditions outlined above when a vehicle is booked through this site and the terms and conditions of the provider of the car when arriving to Iceland that could vary slightly. Islandiacar Travel ehf cannot be held responsible for the actions of the rental provider. Islandiacar Travel ehf can only mediate between the customer and the rental provider on any issues that have arisen as a result of the use of the rental vehicle. Islandiacar cannot be held liable under any circumstances for compensation to the customer.
    IslandiaCar Travel ehf - +354 77 444 77 - info@islandiacar.com - Laugavegur 172 - 105 Reykjavík - Iceland

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