General Rental Terms
Here are the main terms which apply when renting a vehicle in Iceland. Should you have any specific requirements just let us know. We will endeavour to provide the requested vehicle. However, if this isn’t possible, we reserve the right to provide an alternative of a similar or superior standard. If you have any questions please don’t hesitate to call us.
INCLUDED
- Rental of the car for the agreed period on an unlimited mileage basis
- Semi-comprehensive insurance – no charge for second driver
- Icelandic VAT (@ 25.5%)
- Icelandic SIM card with ISK 500 of calls
- Loan of CD guide to Iceland
NOT INCLUDED
- Insurance policy upgrades
- Fuel and oil
STANDARD INSURANCE
All rentals include a standard insurance policy and include Collision Damage Waiver (CDW). This CDW insurance waives liability in case of damage to the rental vehicle in excess of approx. £870 for standard vehicles (cat. A-D) and approx. £1,550 for all other vehicles (cat. E-X). Excesses are charged locally in Icelandic Krona.
Clients should take careful note of the standard exclusions that apply to vehicles hired in Iceland. Exclusions include but are not limited to:
- Driving under the influence of any intoxicants
- Driving in or across rivers or any kind of waterways. Such driving is totally the responsibility of the lessee
- Damage caused by sand, gravel, ash, pumice, or other kinds of earth material being blown onto the vehicle.
- Driving in banks of snow and ice
- Vehicle use that contravenes Icelandic law and/or the provisions of the lease
- Damage to the underside of the vehicle
- Off road driving or driving on F Class roads unless as specified in the Rental Terms and Conditions
Careful notice should also be taken of the additional exclusions that apply to the CDW section of the cover.
For more information on the Rental Terms and Conditions find out more »
Download a handy summary - 'Things you need to know'
INSURANCE POLICY UPGRADE
(Excess Reimbursement Insurance)
The last thing you need at the end of your trip is a charge on your credit card.
Although you may have a fully pre-paid booking for your car, you will still be required to present a valid credit card when you collect the vehicle, in case of any unexpected damages (sometimes referred to as the Excess). In the event you have an accident the car rental company will charge your card (Excess).
With specialist cover provided by Insurance4CarHire you can purchase what we believe to be a great car hire reimbursement insurance package. This insurance policy offers reimbursement for excess charges up to £2,000 in any one incident, covering accidental damage to the vehicle and damage to windows and tyres, as well as loss of car keys (up to £500).
Excesses can range anywhere from £870 - £1,550 should you damage the vehicle. These excesses are standard for Iceland, so it is well worth taking out the additional excess insurance cover that we offer. To the best of our knowledge, this policy offers the most wide ranging cover at the lowest price compared to any additional insurance offered locally in Iceland.
You can take out the cover from as little as £4.75 a day for those aged between 21 and 74 (ideal for shorter breaks up to 7 days). find out more »
Or if you are a frequent driver overseas or away for more than 7 days, you may wish to consider an annual excess insurance policy; the 31 day European cover costs £37.99 (ages 21 to 74) or Worldwide cover for £65 (ages 21 to 74). This annual policy represents excellent value for money as each time you hire a car abroad during the year you benefit from another 31 days of cover for each trip. find out more »
Please note that these policies do not cover camper vans and are always subject to the same exclusions and conditions as stated in the standard insurance provided by the car hire company (unless specifically noted otherwise). For full details and options please follow the above links or speak to Insurance4CarHire direct on 0844 892 1770.
OPTIONAL EXTRAS
A charge of approx. £6 per day (max £36) is payable locally for a child seat or booster seat which must be ordered in advance. GPS is also available at approximately £12 per day (max £100).
ADDITIONAL DRIVERS
A second named driver is free of charge but must be declared direct to Europcar when you collect your vehicle.
AGE REQUIREMENTS
You must be 20 years of age and to have held a full driving licence for a minimum of 12 months prior to renting a vehicle in Iceland.
CREDIT CARD/CASH DEPOSIT
A cash deposit or valid credit card is required by the car rental company. Visa & MasterCard credit cards are accepted. A credit card imprint will be taken at the start of all rentals for security reasons, even when a booking covers the cost of the rental. This credit card imprint may be used to pay all extra charges, including extra km, extra insurance, parking tickets, damages, tank refill or any cost due to the use of the rented vehicle.
CD GUIDE
Our vehicles are equipped with a CD containing commentaries and directions to major attractions for use during your holiday - if the CD is not returned with the vehicle or if it is damaged/broken a charge will be deducted from your credit card.
ICELANDIC SIM CARD
All our clients who book car rental with us will automatically receive an Icelandic SIM card, together with ISK 500 worth of calls.
Your UK GSM mobile phone should work in Iceland without problem (as long as you contact your service provider prior to travel to enable your phone to be used for ‘international roaming’). However roaming charges for UK mobiles are notoriously high and the Icelandic SIM will save you a considerable amount of money, not just when calling home and making local calls, but also when friends and relatives need to call you during your holiday.
What to do before you travel
You will need to contact your service provider and check if your phone is unlocked so that any SIM card provided by another service provider is accepted. If not already unlocked, you may need to pay a small administration charge to make this happen. The SIM card is provided by “Og Vodafone” (the local Vodafone franchise) and top up cards are widely available throughout the island. The SIM card will be sent with your travel documents some weeks before your departure, so you will have plenty of time to let your friends know your Icelandic contact number. Details on how to use the service will be provided with the SIM card or a summary can be seen on the website: http://www.vodafone.is/en/gull . Please note that some service providers may refuse to unlock a customer’s phone, regretfully we are unable to assist in this instance and there is no cash alternative available.
About Iceland Self-drive Holidays
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About Iceland
- Introduction»
- Regions of Iceland
- Getting There
- Transfers»
- Iceland FAQs»
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Show Me More»We really appreciated the Jouney to the Centre of the Earth itinerary which gave us the chance to see so many different landscapes.
Ian Featherstone, Journey to the Centre of the Earth





