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Terms and conditions

Minimum Age and Driving License Requirements

The driver's license you present must be valid and have been so for a minimum of 1 year in advance of the rental date. Minimum age requirements for each vehicle type are as follows:

  • 20+ years old: All of our vehicles except those from the 'Large SUV & 4x4 Rentals' and 'Minivans & Passenger Vans' categories.
  • 23+ years old: All the vehicles in our 'Large SUV & 4x4 Rentals' category and our 'Minivans & Passenger Vans' category.

Reservations

Bookings can only be guaranteed if you pay the booking fee at the time of your reservation.

The minimum rental charge is based on a 48-hour period, even though you can rent the vehicle for just 24 hours. This means that while it's possible to book a car for only one day, you will be charged the full 48-hour rental rate, as this is our minimum pricing policy.

If you are unable to find the vehicle or date of your choice, please feel free to contact us at info@reykjavikcars.com. We will do our best to accommodate your request.

Currency & Typos

Currency rates shown are estimates only and may vary. Typos or obvious errors (including misprints) aren't binding.

Car Types

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

Terms of Payment & Imprints

Once you book a vehicle through our website, we will ask you to use your credit card to pay the booking fee. The amount charged is generally 10-16% (*) of the total rental cost, with the remainder due when you come to collect the vehicle. The remaining balance can be paid with cash (for specific models only) or credit card.

Please be aware that the office might not accept payments and deposits made with American Express Card.

(*) The amount varies based on your chosen vehicle.

Credit Card Imprint & Security Deposit

You will be required to leave your credit card information when the rental begins, independently of the vehicle you choose, as extra charges may apply. This is also the case even if you have a voucher that covers the full rental cost.

These extra charges may include, but are not limited to parking fines, additional insurance, damages or costs incurred throughout the duration of your rental.

You will be required to leave a security deposit for these vehicle models: Jeep Compass, Hyundai Tucson, Ford Puma, Ford Explorer, Subaru Forester, Mazda CX30, Mercedes Vito, and VW Caddy Maxi. For reservations with just the basic CDW insurance, 450,000 ISK will be held. For reservations with the extra Premium insurance, the security deposit is 65,000 ISK.

Cancellation Policy

No cancellation fee applies if you cancel 48 hours or more before your rental. For cancellations within 48 hours of the rental date, a fee equivalent to your booking confirmation fee will be charged.

Please note a no-show will incur in a 100% cancellation fee.

During high season, Reykjavik Cars reserves the right to cancel a reservation within 10 days of the booking date if the selected provider has no availability. In such cases, the booking fee will be fully refunded.

During natural disasters, the cancellation period won't be available, so cancellations will not be possible (except for duly certified medical cases).

Modifications & Amendments

If you wish to shorten your rental period, a minimum of 48 hours' notice prior to the revised pickup date is required. Please note that no refunds will be issued for unused rental days (including late pick-up or early return) if notice is not provided within this timeframe or once the rental has already commenced.

We do not charge any fee for making changes to your booking. However, please note that modifications may result in a change in the total rental price, depending on the new details.

Pick Up and Drop Off Service

Our main office is located close to Keflavik International Airport. Office pick up is, of course, free of charge. Depending on the vehicle being rented, our shuttle bus service can also pick you up and drop you off at other locations.

We also have a Reykjavik office available for certain vehicle models. Additional details for each vehicle can be found on our website.

Depending on the vehicle model you select, a one-way fee may apply:

  • Reykjavík office one-way fee: For vehicles picked up specifically in Reykjavík and returned in Keflavík: 4,900 ISK.
  • One-way rental fee: picking up your vehicle at one location and dropping it off at a different one (RKV/KEF or KEF/RKV) may imply a 7,900 ISK fee.

Note that pick-ups / drop-offs at the Reykjavik office have restricted vehicle collection and return hours.

Insurance

The minimum coverage required to hire a vehicle is third-party liability, which is dictated by Icelandic law. The amount of individual driver liability also applies here. Icelandic law requires that third-party coverage and personal accident insurance be included in your rental.

All available insurance policies and the corresponding excess for CDW (included with EVERY rental), SCDW, GP*, TP*, and SAAP* are described here for your convenience.

* Not available with every vehicle offered.

Collision Damage Waiver (CDW)

The purchase of CDW insures the lessee against the risks of driver liability.

CDW insurance is included in all our rentals at no extra cost. However, please note that no insurance, neither CDW nor SCDW, covers damage to the vehicle's underside, tires, or any damage resulting from driving through rivers or other bodies of water. These types of damage are entirely the responsibility of the lessee.

The self-risk excess for CDW (included) 450,000 ISK*.

Self-risk excess with SCDW:

  • 90,000 ISK*: 2WD vehicles.
  • 120,000 ISK*: 4WD vehicles.

Check out the articles below to explore additional insurance options:

Gravel Protection (GP) (recommended)

GP insurance is recommended as it includes coverage for damage to the paintwork, headlights and windscreen of the vehicle caused by driving on gravel roads, or when passing other vehicles on said roads.

In the event of damage caused by gravel:

  • Self-risk excess with GP: 20,000 ISK*.
  • Self-risk excess without GP: same as outlined above (for CDW and SCDW)

Theft Protection (TP)

TP insures the lessee in the event of the vehicle being stolen. If it is found that gross negligence on the part of the lessee resulted in the theft, the policy will become null and void.

In the event of damage due to theft:

  • Self-risk excess with TP: 0 ISK*
  • Self-risk excess without TP: same as outlined above (for CDW and SCDW)

Sand and Ash Protection (SAAP)**

SAAP has only recently been made available and offers coverage for damage to the vehicle by sand and ash. The self-risk fee is significantly reduced if the vehicle receives damage from sand and ash.

  • Self-risk excess with SAAP: 90,000 ISK*
  • Self-risk excess without SAAP: all the cost of the damage.

**This insurance is currently only available for certain vehicle types.

Platinum Insurance

Platinum Insurance reduces the self-risk/deductible amount for any damage covered by our insurance to zero. This bundle includes CDW/SCDW, GP, TP and SAAP protection and is subject to the terms and conditions of the Rental Agreement.

Self-risk excess with Platinum Insurance: 0 ISK

*The excess amount for every insurance is dependent on the type of vehicle hired and will be clearly displayed on the front of the rental agreement.

Extras

Vehicle providers have a number of extras available that you can add to your car rental at the time of reservation. Do bear in mind these are subject to availability.

Only those people formally designated as 'drivers' and 'extra drivers' can take control of the vehicle. No matter which one of them is behind the wheel, the hirer will also be held responsible for their actions.

Fuel Tank

It is customary for the vehicle to come with a full tank of fuel. It is expected that the vehicle be returned with a full fuel tank. If the tank is not full when you pick the vehicle up, simply return it with the tank at the same level it was at when the rental period began.

Failure to return the tank at the same level as at pick-up will result in a credit card charge for the cost of the fuel, as well as a 15,000 ISK refueling fee.

Taxes

The local Value Added Tax (VAT) of 24% is included in all prices.

In compliance with Icelandic government regulations, a new per-kilometer road tax will be applied to all rentals starting January 1, 2026. The payment method for this tax will depend on your selected vehicle. You will receive specific instructions during the booking process and in your pick-up confirmation email.

Service Fee

The cost of collecting a damaged car outside of Reykjavik and the surrounding area is set at 420 ISK per kilometer, with a minimum fee set at 35,000 ISK.

A handling fee of 10,000 ISK will be applied to all fines and charges that arise as a result of the renter's use of the vehicle. The rental company will also charge the renter for fines and charges in addition to the aforementioned handling fee.

Smoking inside the vehicle will result in a cleaning fee of 35,000 ISK.

About Reykjavik Cars

Reykjavik Cars is a booking agent that represents a number of different car rental providers. At the time of collecting the vehicle, the customer will be asked to sign an agreement with the rental provider. As such, the signature of the renter is confirmation that they agree with all the terms and conditions outlined in the car rental agreement even when booking through our site.

Reykjavik Cars is not responsible for the actions undertaken by the rental provider.

Reykjavik Cars serves as a third-party mediator between the customer and the car rental provider when issues arise with the use of the rental vehicle. Reykjavik Cars cannot, under any circumstances, be held liable for compensation to the customer.

RENTAL AGREEMENT

OBLIGATIONS OF THE LESSEE

The lessee agrees to the provisions of this lease and has received a copy of it.

The lessee will return the automobile:

With all attachments, including tires, tools, documents, maps and other items that were in or on the vehicle at the start of the rental period, in the same condition as upon reception, except for normal wear and tear from use.

If something is missing, the lessee agrees that the cost price of each individual item missing at the time of returning the vehicle will be charged to his or her credit card. The same applies if extra parts that came with the vehicle are missing upon returning it or if it is returned in an unsatisfactory condition, i.e. these items will be charged to the lessee's credit card.

On the date and time specified in the lease, unless otherwise agreed later, 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 expiration of the lease, the lessor is authorized to demand the payment of an additional 24-hour rental period under the terms of this lease.

The vehicle shall be handled and driven carefully. Only those named as drivers on the first page of the agreement are authorized to drive the automobile. If the lessee drops off the vehicle at a different location than stated in this rental agreement, the lessor is allowed to charge the lessee according to the lessor's price list for costs incurred from retrieving the vehicle. If the vehicle is not returned with a full fuel tank, the lessor is authorized to charge the lessee for refueling the vehicle according to the lessor's price list. The lessee is liable for damage resulting from use of the automobile for which no compensation will be paid by the insurance company. This includes damages to the automobile and/or injury to passengers due to the following:

  • Off-road driving. For example, down paths and tracks, on beaches, in areas only accessible during low tide and in other trackless areas.
  • Driving on roads that are marked with an F on public maps, as well as driving the Kjölur (road 35) or Kaldidalur (road 550), except with 4x4 (four-wheel drive) vehicles that the lessor considers 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 own-risk as stated in the lessor's price list at any given time. The aforementioned provision on fines does not affect the lessee's liability regarding damage.
  • Driving under the influence of any intoxicants.
  • Driving in or across rivers and any kind of waterways. Such driving is totally the responsibility of the lessee.
  • Driving in banks of snow and ice.
  • Damages to the door structure (frame, hinges, etc.) caused by wind gusts.
  • Damage caused by animals.
  • Vehicle use that contravenes Icelandic law and/or the provisions of the lease.

In the event of a collision or accident, the lessee shall immediately notify the appropriate police authorities as well as the lessor, and the lessee may not leave the scene before the arrival of the police.

The number of kilometers (km) that the vehicle is driven while this lease is in force is determined by the reading of 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 duration of the lease.

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.

The lessee agrees to pay the lessor (upon request):

  • A deposit amounting to the estimated cost of hiring the vehicle.
  • 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, not taking into account the condition of the vehicle, the roads or the weather.

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.

The lessee is liable for all parking meter charges and fines for breaking traffic laws.

The lessor reserves the right to collect a charge from the lessee where the lessor has to pay fines for the lessee and/or inform the authorities about the lessee because of traffic violations. The exact amount due will be according to the lessor's price list and will be charged against the lessee's credit card.

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

OBLIGATIONS OF THE LESSOR

The lessor commits to supplying the vehicle at the agreed time and to see that it meets the demands made for it.

If the vehicle malfunctions, the lessor shall supply the lessee with a similar 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.

The lessor shall inform the lessee of the content of this agreement, particularly in regards to the obligations that the lessee undertakes by signing it.

The lessor shall inform foreign lessees of: Icelandic traffic regulations, traffic signs and regulations banning off-road driving. The lessor shall particularly point out the dangers stemming from animals crossing the roads.

If the lessor wants to limit the use of the vehicle in regard to its equipment and/or road conditions, it must be done in writing at the time of signing this lease.

INSURANCE

The lessor undertakes to maintain valid liability insurance for his business operations.

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

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

The lessee can purchase separate accident (All-risks) insurance. This policy will specify the amount deductible in each instance of loss.

The CDW and SCDW do not cover the following:

  • Intentional damage or damage due to gross negligence on the part of the driver.
  • 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.
  • Damage due to racing or test-driving.
  • Damage due to war, revolution, civil unrest or riots.
  • Damage done by animals.
  • Holes burned into seats, carpets or mats.
  • Damage only affecting wheels, tires, suspension, batteries, glass (other than windows), radios, or loss by theft of parts of the vehicle and damage resulting from this.
  • Damage caused by driving on rough roads to the vehicle's transmission, drive, parts that are in or attached to the chassis; damage to the chassis resulting from the vehicle scraping the surface on rough roads and as a result of ridges being left by road graders and by 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.
  • Damage resulting from driving in places where vehicle traffic is banned, such as paths, tracks, banks of snow, ice, unabridged 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.
  • Damage caused by sand, gravel, ash, pumice, or other kinds of earth material being blown onto the vehicle.
  • If the vehicle is transported by sea, no compensation will be paid for damage caused by sea spray/seawater.
  • Damage to vehicles caused by driving on roads marked with an F in public maps as well as driving on Kjölur (Road 35) or Kaldidalur (road 550).
  • Lessors loss as a result of the vehicle being stolen.
  • Water damage to the vehicle.

In other instances, please refer to the general conditions for CDW and SCDW insurances.

For specific vehicles, the lessee may be able to purchase special Gravel Protection (GP), Theft Protection (TP) and Sand and Ash Protection (SAAP) coverages.

GENERAL PROVISIONS

The Lessee confirms by signing this rental agreement that he or she received the vehicle and attachments in sound condition.

Signing this rental agreement is equal to the lessee's signature for a credit card transaction due to payments of charges which the lessor may charge to the lessee's credit card, always doing so rightfully and according to the provisions included in this rental agreement.

This lease agreement shall always be kept in the vehicle during the term of the lease.

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

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 of this agreement. If legal disputes arise concerning this lease agreement, they will be heard before the lessor's legal venue.

It should be pointed out that disputes between the parties regarding this lease agreement can be submitted to the active Arbitration committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.

Reykjavik Cars is a booking agent operating for a number of car 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 of the car rental provider outlined above when a vehicle is booked through this site. We use AdRoll Group https://www.nextroll.com/privacy for targeting and advertising.