Terms and Conditions

For compact car & SUV rentals


Select the relevant page for terms and conditions:

Compact cars, Family cars & SUVs ~~ Special Vehicles (Super Jeeps) ~~ Campers and Caravans



1) The lessee agrees to the provisions of this agreement and receives a copy of it.

2) The lessee shall return the car in the following manner:

  1. With all accessories (including tires, tools, documents and other items) in the condition they were in when received, with the exception of normal wear due to normal use.
  2. On the date and at the hour specified by this agreement unless otherwise agreed.
  3. To a lessor premises, unless otherwise agreed upon.

3) If the lessee fails to return the vehicle at the agreed time pursuant to this agreement or fails to inform the lessor of his/her intention to extend the lease, the lessor or the police are permitted to repossess the vehicle without further notice and at the expense of the lessee. An extension of the lease is dependent on the approval of the lessor. If the lessee returns the vehicle one hour or more after the expiry of the agreement, the lessor is permitted to charge the lessee for up to a whole day's rental fee according to this agreement.

4) The vehicle must be controlled and driven with due care. Only those registered as drivers in this agree- ment are permitted to drive the vehicle. The lessee will be held liable for all damages resulting from the use of the vehicle which are not covered by the vehicle's insurance company. This includes damages to the car and/or injury to passengers on account of:

  1. Drive off the main roads.
  2. Driving in or across rivers or any kind of water course
  3. Intentional acts or gross negligence.
  4. Operating the car under the influence of intoxicants (e.g. alcohol and other psychoactive drugs)
  5. Use of the car is in violation of Icelandic law and/or the provisions of this agreement.

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. The lessee may not leave the scene before the police arrives.

6) The distance (in kilometres) that the vehicle is driven while this rental agreement is effective is determined by reading a standard odometer supplied with the car by the manufacturer. The lessee shall notify lessor, without delay if the odometer is out of order or stops functioning during the validity of this agreement.

7) The lessor is not responsible for disappearance or damage of property that the lessee or any other party leaves in or transports with the vehicle.

8) The lessee agrees to pay lessor upon request:

  1. A deposit amounting to the estimated cost of hiring the car.
  2. Any and all expenses incurred by lessor in transporting the car back to its premises, in the event that it has been left without supervision, without regard to the condition of the vehicle, roads, or weather.

9) The lessee is not authorized to have repairs done or make changes to the car or its accessories, or to put the vehicle up as any kind of collateral, without the prior, written consent of lessor.

10) The lessee is responsible for all parking tickets and fines for traffic violations.
11) The lessee is not permitted to use the vehicle for transportation of passengers for payment, to lend it or to sublet it.


12) The lessor undertakes to deliver the vehicle at the agreed time and to ensure that it meets the require- ments made upon it.

13) If the vehicle malfunctions, the lessor shall supply the lessee with a comparable vehicle as soon as pos- sible. If the damage is minor, the lessor is authorized to have repairs done on the vehicle after obtaining the lessee's consent.

14) The lessor shall inform the lessee of the content of this agreement particularly as regards the obligations that the lessee undertakes by signing it.

15) The lessor shall inform a foreign lessee on Icelandic traffic regulations, traffic signs, and regulations banning off-road driving. The lessor shall also point out danger arising from animals on the roads.

16) If the Lessor wishes to limit the use of the vehicle with regard to its equipment and/or condition, such limits shall be established in writing upon signature hereof.

17) The lessor undertakes to hold professional indemnity insurance at all times.


18) The rental charge includes statutory motor insurance, i.e. third-party liability insurance and accident insurance for the driver and owners.

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

20) The lessee can purchase separate accident (kasko) insurance. This rental agreement will specify the amount deductible in each instance of damage.

21) The accident (kasko) insurance does not cover:

  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 rough roads for instance 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
  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 damages caused by sea spray/ seawater
  12. In other instances, reference is made to the general conditions for accident (kasko) insurance.

22) The lessee may purchase special gravel (GP), theft (TP), and water damage insurance (WP) from those car rentals/auto rentals that sell such policies.


23) This Rental Agreement shall be kept in the vehicle at all times during the rental period.

24) Additions and amendments to the terms and conditions thereof shall be made in writing.

25) 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 the scope of this agreement. If legal disputes arises concerning this agreement, the District court of lessee's legal venue shall decide on the matter.

26) 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.