Contract Terms

Contract terms & Conditions

Age and driving license:
1) The driver must be at least 21 years old and driver license held for at least one year.

Method of payment:
2) Drivers valid credit card required. Visa, MasterCard and all major credit cards accepted. A credit card information will be taken at the start of all rentals for security reasons. This credit card information may be used to pay parking or speeding tickets, damages, tank refill or any cost due to the use of the rented vehicle.

Obligations of the lessee:
3) Driver agrees to the provisions of the rental and has received a copy of it.

4) The driver will return the vehicle:
a) With all attachments, including tires, tools, documents and other items that were in or on the vehicle at the start of rental, in the same condition as upon reception, except for normal wear and tear from use.
b) On the date and time specified by the lease, unless otherwise agreed later.
c) Clean inside, empty and clean toilet and toilet tank, with a full tank of fuel. If the vehicle is returned dirty, with dirty toilet/tank and/or with less fuel than at the time it was picked up the rental agency is permitted to charge the driver for the missing fuel plus a service fee according to the rental’s agencies price list.

5) If the driver violates the terms of this contract or does not return the vehicle at the time agreed according to 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 driver cost. Extending the lease is dependent on the consent of the lessor. If the driver returns the vehicle 1 hour or later after the lease has expired, the lessor is authorized to demand up to 24-hours rental under the terms of the lease. For every day that begins thereafter, lessor may collect all charges as per the lessors pricelist.

6) Driving rental cars on roads or tracks with no roadnumber is forbidden. Passenger cars and 2wd vehicles are strictly forbidden on roads that are marked with an F on public maps, as well as driving Kjolur (road 35) or Kaldidalur (road 550) or or Öxi (road 939) Driving on F-roads is only allowed on 4X4 (four-wheel drive) A breach of this article authorizes lessor to collect fines from the driver, equaling the amount of own-risk as stated in lessors price-list at any given time. The aforementioned provision on fines does not affect the drivers liability regarding damage.

7) The vehicle shall be handled and driven carefully. Only those named as drivers on the rental agreement are authorized to drive the vehicle. If driver drops off the vehicle at different location than stated in this rental agreement the lessor is allowed to charge driver according to the lessors price-list for the cost caused from fetching the vehicle. The driver is liable for damage resulting from use of the vehicle for which no compensation will be paid by the insurance company. This includes damages to the vehicle and/or injury to passengers due to the following:
a) Off-road driving, for example, in paths and tracks, on beaches, in areas only accessible during low tide, or in other trackless areas.
b) Vehicle use that contravenes Icelandic law and/or the provisions of the lease or driving under the influence of any intoxicants.
c) Driving in or across rivers or any kind of water course. Such driving is totally the responsibility of the driver.
d) Driving in banks of snow and ice.

9) In the event of a collision or accident the driver shall immediately notify the appropriate police authorities as well as the lessor of the incident, and the driver may not leave the scene before the police have arrived.

10) The lessor is not responsible for the disappearance of or damage to property that the driver or any other party leaves in or transports with the vehicle. The driver agrees to pay the lessor, upon request:
a) a deposit amounting to the estimated cost of hiring the car.
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 supervision, without regard to condition of the vehicle, the roads or the weather.

11) The driver 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.

12) The driver is liable for all parking meter charges and fines for breaking traffic laws.

13) The lessor reserves the right to collect a charge from the driver, charged against his or her credit card, according to lessor’s price list, lessor has to pay fines for the drivers and/or inform the authorities about the driver because of traffic violations. The driver is not authorized to use the vehicle to transport passengers for payment, lend it to others, or sublease it.

Obligations of the Lessor:
14) If the vehicle brakes down under normal use and where the driver can not be held responsible, the lessor shall supply the driver with a comparable vehicle as soon as possible. If the damage is minor, the drvier is authorized to have repairs done on the vehicle at a location decided by the rental agency.

15) The lessor shall inform the driver of the content of the agreement particularly as regards the obligations that the driver undertakes by signing it.

16) The lessor shall inform the foreign drivers regarding Icelandic traffic regulations, traffic signs, and regulations banning off-road driving. The lessor shall particularly point out the dangers stemming from animals on the roads.

17) If the lessor wants to limit the use of the vehicle with regard to its equipment and/or conditions, this shall be done in writing when the rental agreement is signed. The lessor undertakes to maintain valid liability insurance for his business operations.

18) The rental charge includes mandatory vehicle insurance, including liability insurance and accident insurance for the driver and the owner, together with collision damage waiver (CDW) insurance with a predetermined self risk that applies in each damage incident.

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

20) The driver can purchase separate accident super collision damage waiver (SCDW) insurance. This policy will lower the amount of self risk (deductible).

21) Each self-risk only applies to one incident. In instances of more damage that obviously did not occur at one and the same time,each own-risk CDW or SCDW applies to only one incident.

22) The Collision Damage Waiver (CDW) or Super Collision Damage Waiver (SCDW) due 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 safe manner.
c) Damage due to race or test driving.
d) Damage due to war, revolution, civil unrest or riots.
e) Damage done by animals.
f) Holes burned into seats, carpets or mats.
g) 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.
h) Damage caused by driving on rough roads to the vehicles transmission, drive, other parts that are in or attached to the chassis; damage to the chassis resulting from scraping the bottom on rough roads as a result of ridges being left by the 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.
i) Damages 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.
j) Damages caused by sand, gravel, ash, pumice, or other kinds of earth material being blown onto the vehicle.
k) If the vehicle is transported by sea, no compensation will be paid for damage caused by sea spray/seawater.
l) Damage to 2×4 vehicles caused by driving on roads marked with an F in public maps as well as driving on Kjolur (Road 35) or Kaldidalur (road 550) or Öxi (road 939)
m) Lessors loss because of the vehicle being stolen.
n) Water damage to the vehicle.
o) Wind damages such as doors blowing up and damaging body parts & hinges
In other instances, reference is made to the general conditions for accident/all-risks insurance.

23) The lessee can purchase a separate Gravel Protection (GP). Gravel protection covers damages to windscreen, headlights and the body of the car if gravel or stones get thrown to the rental car by a passing vehicle.

24) However, no insurance covers damages to the underside of the rented vehicle or damages due to driving through rivers or any kind of waterfall. CDW and SCDW do not cover such damages. Such damages are always the drivers full responsibility. Please see more about insurance in the articles here above.

General terms:
25) The driver confirms with his or her signature to this rental agreement that he or she received the vehicle and attachments in fine condition.

26) Signing this rental agreement is equal to driver signature for a credit card transaction due to payments of charges which lessor charges to drivers credit card and is rightfully claimed by lessor according to provisions of this rental agreement.

27) This rental agreement shall always be in the vehicle during rental period.

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

29) Icelandic law applies to agreements made on the basis of terms stated 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 damage based on liability outside this agreement. If legal disputes arise concerning the rental agreement, they will be heard before the lessors legal venue.

30) It should be pointed out that disputes between the parties to the renal agreement can be submitted to the Arbitration committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.

31) Cancellation fee:
60 days prior to rental date and more 50%
59 – 25 days prior to rental date 75%
24 – 0 days prior to rental date 100%
Please contact us through or by phone: 00354 8645000

32) Caravan Car Rental promise full confidentiality of all the information the customer provides in connection with the transaction. Information from the customer will not be delivered to a third party under any circumstances

33) Opening hours:
Monday – Friday from 08:30 – 18:00
Saturday – Sunday from 10:00 – 16:00
Pick up between 08:30 – 18:00 (weekends between 10-15)
Drop off between 08:30 – 17:00 (weekends between 10-15)