Terms & conditions
1. Driver´s license and age
1.1. The Lessee as well as all additional drivers must have and have had a valid
driver´s license for at least a year before being allowed to rent a vehicle. The
Lessee as well as all additional drivers must be at least 21 years of age.
2. Terms of payment
2.1. The Lessee can pay for the rented vehicle and any and all accessories with all
valid major credit cards as well as cash and must do so at the beginging of rent.
2.2. If the Lessee chooses to pay for the vehicle using cash the Lessor must put a
side retention equal to the amount of the Rental Agreement.
2.3. The Lessee is obligated to present the Lessor with a valid credit card in the
event of any and all extra cost due to but not limited to:
a) Traffic violations
b) Parking violations
c) Deductible in the case of damage
d) Damage not covered by insurance held by the Lessee
e) Damage to any and all extra equipment
f) Unforeseen fuel costs
g) Any and all unforeseen costs while the vehicle is in the Lessees care.
3. Obligations of the Lessor
3.1. The Lessor undertakes to do his utmost to deliver the vehicle at the agreed time
and to ensure that it meets the requirements made upon it.
3.2. The Lessor shall acquaint the Lessee with the subject matter of this Agreement,
in particular the obligations undertaken by the Lessee upon signature hereof.
3.3. In the event that the vehicle malfunctions owing to wear and other reasons for
which the Lessee is not responsible, the Lessor shall supply the Lessee with
another vehicle as soon as possible.
3.4. In the event of a small mechanical failure the Lessee has the authority to have the
vehicle repaired in consultation with the Lessor.
3.5. The Lessor shall make every effort to inform a foreign Lessee about Icelandic
traffic rules, traffic signs and rules regarding the prohibition of off-road driving. In
addition, the Lessor shall draw particular attention to the dangers posed by
animals on roads.
3.6. 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.
3.7. The Lessor undertakes to hold professional indemnity insurance at all times.
4. Obligations of the Lessee
4.1. The Lessee agrees to the provisions of this Rental Agreement and has received
a copy hereof.
4.2. The Lessee agrees to having received the vehicle and any and all equipment in
perfect condition by signing hereof.
4.3. The Lessee shall return the vehicle together with all accessories (including tires
and tools) in the same condition as they were received by the Lessee, except for
normal wear and tear over owing to use.
4.4. The Lessee shall return the vehicle on the date specified under the terms of this
Agreement, unless otherwise agreed at a later time.
4.5. If the vehicle is not returned to the prearranged location the Lessor may charge
the Lessee for the amount it is required to retrieve the vehicle under the terms of
the tariff of the Lessor.
4.6. A rented vehicle is delivered with a full tank of fuel and shall be returned with a full
tank of fuel. If the vehicle is not returned with a full tank of fuel, the Lessor may
charge the Lessee for the amount of fuel needed to fill the fuel tank under the
terms of the tariff of the Lessor.
4.7. If the Lessee fails to return the vehicle at the time agreed in this Agreement, or
fails to declare his intention to extend the rental period, the Lessor or the police
may repossess the vehicle wothout further notice and at the cost of the Lessee.
Extended rental is subject to the approval of the Lessor. If the Lessee returns the
vehicle one hour or more after expiry of the Agreement, the Lessor may demand
up to a 24-hours rental charge under the terms hereof.
4.8. If the Lessee fails to return the vehicle at the time agreed in this Agreement, the
Lessor may levy charges pursuant to his tariff for each day the vehicle is not
4.9. The vehicle shall be handled and driven carefully. Only those registered as
authorized drivers in this Agreement are permitted to drive the vehicle.
4.10. The Lessee is liable for all damages that con be traced back to the following
a) Driving off-road.
b) Driving on snow and ice.
c) Driving in or across rivers or any kind of water course.
d) Driving under the influence of any intocicant.
e) Use of the vehicle that contravenes Icelandic law and/or the provisions hereof.
f) The Lessee must at once make the Lessor aware of any and all defects or
mechanical failure of any kind in the rented vehicle
g) 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 shall not leave the scene before the police have arrived.
h) The Lessor shall not be responsible for the disappearance of or damage to
items that the Lessee or any other party stores or transports in the vehicle.
5.1. The rental charge includes statutory motor insurance, i.e. liability insurance and
accident insurance for the driver and owners.
5.2. Third-party liability insurance shall consist of the amount stipulated by Icelandic
law at any given time.
5.3. The Lessee can purchase a SCDW (kasko) insurance that limits the Lesee liability
according to the amount stipulated in the Rental Agreement.
5.4. Each personal liability covers only one accident. If more than one accident occurs
during the time the vehicle is in the possession of the Lessee, the personal
liability covers only the first accident.
5.5 The SCDW (kasko) insurance does not cover:
a) Intentional damage or damage owing to gross negligence by the driver.
b) Damage resultin from the driver being under the influence of alcohol, stimulants
or sedatives, or otherwise incapavle of controlling the vehicle in a secure
c) Damage owing to racing or test driving.
d) Damage owing to war, revolution, civil unrest or rioting.
e) Damage inflicted by animals.
f) Holes burned into seats, carpets or mats.
g) Damage affecting only wheels, tires, suspension, batteries, glass (except for
windscreen when additional insurance is taken), radio receiversor loss by theft
of parts of the vehicle and damage resulting therefrom.
h) Damage caused by driving on rough road, such as damage to the vehicle´s
transmission, drive or other components in or attached to the chassis; damage
to the chassis resulting from the vehicle bottoming on rough roads as result of
ridges left by road graders; stones lodged in the road surface or at the edge of
the roadway. The same applies to damage from stones being thrown up and
striking the underside of the vehicle during driving.
i) Damage resulting from driving in places where the vehicle is not permitted to
be driven, such as tracks, rough trails, in snowdrift, on ice, across rivers or
streams without bridges, on beaches, on causeways accessible only at low tide
or in other off-road areas.
j) Damage caused by sea spray/seawater if the vehicle is transported by sea.
6. General provisions
6.1. The Lessee acknowledges by his signature hereon that of the rented vehicle is
damaged in any way, if there are any delays or cost due to mechanical failure
AB Car rental are not to be blamed.
6.2. The Lessor may debit the bank card or credit card of the Lessee for the rental
charge and other costs payable by the Lessee hereunder.
6.3. This Rental Agreement shall be kept in the vehicle at all times during the rental
6.4. Annexes and amendments to the terms and conditions hereof shall be made in
6.5. The Lessee may not use the vehicle to transport passengers against payment,
lend it ot sublease it.
6.6. In the event of a dispute arising out of or in connection with this Agreement, the
case shall be brought in the venue of the Lessor.
6.7. Agreements concluded on the basis of the above terms and conditions, including
possible claims for compensation that may be made, applicable, shall be
goverened by Icelandic law.
6.8. Disputes between the parties to this Rental Agreement may be submitted to the
Appellate Committee of the Consumers´ Association of Iceland and the Icelandic
Travel Industry Association.
AB Car rental