Terms & Conditions

In conformity with common business practices within the Icelandic travel industry


Payments & Cancellations

A minimum 20% non-refundable payment is required upon booking.

All cancellations must be made by e-mail.

Outstanding reservation fees will be charged to credit card on the starting date of the reservation.


The customer provides an email address and phone number (contact information) for the benefit of the transaction and agrees that the contact information will be shared with the collection agency, in the event of collection actions. The customer also agrees that the contact information will be used in general to communicate with him for billing purposes, including through electronic billing processes.


Cancellations fees:

Cancellations with a notice of more than 28 days prior to arrival: 20% cancellation fee of the total reservation value

Cancellations with a notice of 27 - 8 days prior to arrival:  50% cancellation fee of the total reservation value

Cancellations with a notice of 7 days or less: no refund


Age Restrictions

Minimum age is 25 years for individual rental, can be lowered to 21 if driver has held a valid license for 2 years with the young drivers insurance for an additional fee per day per young driver.

Minimum age is 21 year for driving in guided tours.

All drivers need to have held a valid drivers licence for 2 years, an International Driving Permit (IDP) / International Driving License (IDL) is also required if the national driver’s license is not in the Roman script.


Fuel price

Prepaid fuel is available. All cars are rented out with a full tank. If the car is not returned with a full tank a fuel filling charge applies and will be charged to the credit card provided on the rental agreement.


Damage, theft, rescues and accidents

In the event of a car breakdown, theft or major accident the ISAK main number +354 419 4000 (available from 08-16:30, dial 9 before and after these hours) must be contacted immediately. Transporting a damaged car costs ISK 450,- per km for the Lessee. For a transportation/handling of an damaged vehicle there is always a minimum cost of ISK 65.000,- which the renter must cover. In the case of an emergency the Lessee liable for all rescue cost that might be charged to ISAK by a third party. For further details see Rental Agreement.


Damages include all damage inflicted on the vehicle during rental related to the usage of the car or accidents that are not vehicle malfunctions. That includes broken axles, drive shafts, clutches, transmission, drive or any other damage caused by improper use or rough driving. Included in all rentals is the standard collision damage waiver (CDW) with a self risk of 500.000 ISK

Optional Super CDW can be purchased for limiting the self risk to 125.000 ISK. For further details see Rental Agreement.


Cost of damage

Damages are generally payable at the end of the rental. However, if a car so badly damaged that it has to be replaced, ISAK asks for settlement of the damage before a replacement vehicle will be provided. For further details see Rental Agreement.


Car Replacement

Replacing a damaged vehicle with another vehicle is subject to availability. Sometimes replacing the damaged vehicle with the same type is not possible. Such action by ISAK does not constitute a breach of contract and does not entitle the Lessee to any refund. If no alternative vehicle is available, ISAK has no liability for refund any cost inferred by the Lessee. A replacement vehicle will not be provided before the damage of the old car has been settled. For further details see Rental Agreement.



Car Rental Agreement - Terms & Conditions

Obligations of the Lessee:

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

2. Driver shall be at least 25 years of age and shall have held a valid driver’s license for at least  2 years. With the addition of the Young Driver’s Supplement that age can be lowered to 21 years.

3. The vehicle shall be the responsibility of the lessee from the time it is received until such time it is returned and the lessor has received it and registered the return of the vehicle.

4. If the vehicle is returned outside of normal opening hours and/or outside the business premises of ISAK it shall remain the responsibility of the lessee until the lessor has received it and registered the return of the vehicle.

5. The lessee shall return the vehicle

a. and all accessories (including tires and tools) in the condition they were in when received, with the exception of normal wear due to use;

b.  on the date specified by this lease, unless otherwise agreed later;

c. to the lessor’s premises, unless otherwise agreed.

6. The lessor shall be authorized to charge the credit card of the lessee for the lease of the vehicle as well as other payments that the lessee must pay according to the lease and its terms, including payments for damages to the vehicle during the period of the lease agreement. The lessor has the sole right to determine when this will be done and whether this is done in one or more payments. This right shall remain in force for six months after the vehicle has been returned to the lessor.

7. The lessee shall pay for fuel and whatever else is needed for operating the vehicle during the period it is under his responsibility as understood by this lease .

8. If the lessee does not return the vehicle at the time agreed upon in this lease, or does not declare his intention to extend the lease, the lessor (ISAK) or the police are authorized to repossess the vehicle without further notice and at the lessee’s expense. 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 charge up to 24-hours rental under the terms of this lease.

9. The vehicle shall be handled and driven carefully. Only those designated as drivers on the front page of this agreement are authorized to drive the vehicle. If the vehicle is being guided, the instructions of the guide must be fully complied with.  The lessee is liable for all damage resulting from use of the vehicle that will not be compensated for  by the vehicle’s insurance company. This includes damage to the vehicle and/or injury to passengers due to the following:

a. off-road driving;

b. driving across rivers or any kind of waters ;

c. intentional acts or gross negligence;

d. use of intoxicants by the driver;

e. vehicle use that contravenes Icelandic law and/or the provisions of this lease.

10. In the event of a collision or accident, the lessee shall immediately notify an authorized accident service agent and ISAK and the lessee may not leave the scene before a representative of ISAK has arrived.

11. The number of kilometres (km) the vehicle is driven during the period it is under the responsibility of the lessee is determined by reading the vehicle’s odometer installed in the vehicle by the manufacturer.  The lessee shall notify ISAK without delay if the odometer is or becomes inactive while the vehicle is under the responsibility of the lessee  and shall abide by all the instructions of ISAK regarding thereto, including taking the vehicle in for repair. ISAK is authorized to assess the number of kilometres driven in the event of the odometer not working.

12. 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.

13. The lessee agrees to pay ISAK, upon request:

a.  a deposit amounting to the estimated cost of leasing the vehicle;

b. 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 regard to the condition of the vehicle, roads or weather.

14. 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.

15. The lessee is responsible for all parking meter charges and traffic fines during the lease period.

16. The lessee agrees that the vehicle will be equipped with a monitor that records kilometres, location, condition and the strain on the vehicle.


Obligations of the Lessor

17. The lessor undertakes to supply the vehicle at the agreed time and to see that it meets lawful requirements.

18. If the vehicle malfunctions for no fault of the lessee, the lessor shall supply the lessee with a comparable vehicle as soon as possible. If the malfunction is minor, the lessee is authorized to have repairs done to the vehicle after obtaining the lessor’s consent.

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

20. The lessor shall to the best of his ability inform a foreign lessee of Icelandic traffic regulations, traffic signs and of prohibitions against off-road driving and provide all lessees with special information booklets at the beginning of the lease period.

21. The lessor shall be committed to keep the real-time location of his vehicles confidential and only use it

a. when searching for a vehicle or in case of emergency;

b. when a possible breakdown in the vehicle is taking place, and

c. for monitoring when the vehicle needs normal maintenance.

22. Should the lessor wish to limit the use of the vehicle with regard to its equipment beyond what is specified in this lease, it shall be done in writing at the signature of the lease. Such limits shall constitute a part of the lease and its conditions.

23. The lessor undertakes to maintain valid liability insurance for his business operations and  mandatory liability insurance for all his vehicles.


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

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

26. The lessee can purchase loss damage waiver insurance coverage as a supplement. The self-risk deductible shall be specified in this lease.

27. This loss damage waiver insurance does not cover:

a. intentional damage or damage due to gross negligence on the part of the driver;

b. 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;

c. damage due to racing or test driving;

d. damage due to war, revolution, civil unrest, riots;

e. damage done by animals;

f. holes burned into seats, carpets or mats;

g. damage affecting only wheels, wheel rims, tires, suspension, batteries, glass,  or loss by theft of parts of the vehicle and damage resulting therefrom;

h. damage caused by driving on rough roads such as to the vehicle’s transmission, drivetrain or other parts of the underside resulting from the vehicle scraping rough road surfaces.  The same applies to damage occurring when stones  strike the underside of the vehicle;

i.  damage resulting from driving in places where vehicle traffic is banned, such as paths, tracks, banks of snow, ice, unbridged rivers, brooks or streams, beaches, places only accessible at low tide, or other trackless areas.

j.  damage to vehicles not allowed on F-roads.

k. damage caused by sand, gravel, ash, pumice, or other kinds of soil material being blown onto the vehicle.

l. if the vehicle is transported by sea, the payment of a self-risk deductible charge does not cover  damage caused by seawater;

m. the loss incurred by the lessor due to theft of the vehicle;

n. water damage to the vehicle.

o. In all other respects, reference is made to the terms of loss damage waiver insurance.

p. The loss of ignition keys. The lessee shall be responsible for the cost of replacement, including the cost incurred by the lessor in bringing a new key to the lessee.


General Provisions

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

29. Additions and amendments to the terms of this lease agreement shall be in writing.

30. The lessor is allowed to assume possession of the vehicle at any time and without notice if parked illegally or if it has been used in a manner inconsistent with this lease agreement or in contravention to law or regulations or if the vehicle appears abandoned.

31. If smoking takes place in the vehicle, the lessee is obligated to pay for cleaning the vehicle according to the schedule of charges of ISAK in each instance.

32. The lessee confirms with his signature to this agreement that if the vehicle suffers loss or damage for which the lessee is responsible, the following documentation shall be viewed as adequate proof for the cost and extent of such loss or damage, regardless of whether a civil lawsuit for such a claim is pursued or not:

a. An itemized bill from a certified garage that has received a CABAS certification according to the CABAS damage assessment system and/or the assessment from a certified garage that has received a CABAS certification according to the CABAS assessment system.

b. Photographs of the damage to the vehicle.

c. A signed lease agreement.

d. In case of minor damage, up to ISK 300,000, a completed damage report by an ISAK employee.

33. The laws of Iceland shall apply to agreements based on the above terms, including damage claims that may be made. This applies both to the basis and calculation of compensation. The same applies to damage claims on the basis of compensation responsibility outside agreements. If a dispute arises over this lease agreement (or claims for damages of the vehicle and/or related cost), it shall be subject to the jurisdiction of the Reykjavík District Court (or the district court of the area where the damage occurred in accordance with article 41 of the Act on Civil Procedure no. 91/1991) and both parties to this agreement specifically agree to the jurisdiction of the Icelandic courts in any such cases. However, the lessor is authorized but not obliged to pursue a lawsuit against the lessee in the venue of the lessee.



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