Terms and Conditions
Driver´s license and age requirements:
The registered driver must be at least 20 years old (23 years old to rent a 4x4 car) and have held a current driver´s license for at least 12 months. The license must be presented at the start of the rental. Driving licenses from any EEA member state (including Faroe Islands) are valid in Iceland.
Driving licenses (Category B only) from countries outside of the EEA are only valid if they are printed in Latin characters or if they are accompanied by a translation in either Icelandic, English, Danish, Norwegian or Swedish.
Please read these terms and conditions carefully. They are intended to protect both the renter and the rental car provider.
In the interests of full disclosure, we want you to know exactly what you can expect when renting a vehicle from us. If you have any further questions then please do not hesitate to contact us.
Credit Card imprint:
Upon completion of the rental agreement a credit card scan is taken. We do this to ensure payment is made for any extra charges that are incurred. These include (but are not limited to) extra insurance, parking fines, and damage to the vehicle. All rentals are subject to the full rental agreement terms and conditions at the time of rental.
The minimum rental period with Auto Iceland is 24 hours for pick up and drop off at the same location.
Pick-up and drop-off service:
We offer a transfer service for our customers who are staying in the Reykjavik area. There is also a pick up and drop off service for customers arriving at Keflavik International Airport.
If your preferred model or brand is not available then we reserve the right to exchange it for another car in the same category or higher.
In most cases the car will have a full tank of fuel when you pick it up. The car should be returned completely full or a charge will be made for having the tank refilled.
Local value added tax (VAT) is 24%.
Icelandic law requires that children travel in an appropriate safety seat. You can book a child seat with your online reservation. The child seats are generally suitable for a child who weighs up to 36 kg.
Reservation and cancellation policy:
Due to excessive demand in the high season, a shortage of rental cars is very common in Iceland. Paying in advance guarantees your rental at the quoted price. Our cancellation policy is as follows:
- Cancellations where notice is given at least 60 days before the rental is due to commence incur a cancellation fee of 3% (min 5.000 ISK)
- Cancellations where notice is given between 45 days before the rental is due to commence incur a 40% cancellation fee.
- Cancellations where notice is given less than 30 days before the rental is due to commence (or a no-show at the pick up) incur a 80% cancellation fee.
Third party liability insurance is compulsory in Iceland. Third party coverage and personal accident insurance is included in your rental.
Collision Damage Waiver (CDW):
CDW insurance is included in the price with Auto Iceland (self-risk is 360.000 ISK).
Super collision Damage waiver (SCDW):
SCDW insurance excess is 150.000 ISK for all models. The following damages are NOT covered by either the CDW or SCDW insurance. Therefore the renter will be responsible for ALL costs incurred by:
- driving while intoxicated.
- damages caused as a result of an accident with livestock.
- damage to tyres.
- damage to headlights (*)
- damage to the windscreen (*) and to the underside of the car.
- damage caused by loose rocks which get thrown at the car on gravel roads (*)
- damages to the car´s engine caused by water getting into the motor.
(*) covered by gravel protection (GP).
For further information and more details about terms and conditions please consult the rental agreement.
Gravel protection (GP):
Gravel protection (GP). This covers damages to the windscreen and the headlights caused by gravel or rocks getting thrown at the vehicle by another car.
The excess for a broken windscreen is 16.000 ISK.
Theft protection (TP):
TP covers the theft of the rental vehicle.
Sand and ash protection (SAAP):
Damages as a result of exposure to ash from volcanic eruptions and from sand storms (more common in the south coast of Iceland), can potentially cost between 500.000 and 1.500.000 ISK to repair.
We offer new optional insurance (SAAP) that covers any damage caused by ash and sandstorms to the paint, windows, lights and components of the car. Purchasing SAAP lowers the excess in case of damage from sand and ash to 150.000 ISK.
The price for SAAP insurance is 1.500 ISK per day.
The emergency services number in Iceland is 112.
Break down service:
For our 24 hour breakdown and roadside assistance service please call 00354 787 4444
Equipment available on request:
See the "Extras" section for a detailed list of what extra equipment is available.
There is a collection fee of 220 ISK per/km (minimum fee ISK 35.000) for picking up a damaged car outside of Reykjavik and the surrounding area.There is a handling fee of 8.500 ISK for all fines or charges incurred by the renter. The car rental company will charge the renter for fines and charges plus the previously mentioned handling fee. Car Rental Iceland with Auto Iceland.
In the event of a car being returned extremely dirty or if there is evidence of someone having smoked inside the car then the renter will be charged a ISK 15.000 cleaning fee. Where a car is returned without a full tank of fuel a refuelling charge applies. The refuelling charge is 250 ISK for every litre of fuel that is required to refill the vehicle plus the actual cost of the fuel.