Terms, Conditions and Insurance
Obligations of the Renter:
1. The Renter agrees to the provisions of this Rental Agreement and has received a copy hereof.
2. The Renter shall return the vehicle:
a. together with all parts and accessories (including tyres, tools and GPS) in the same condition as they were received by the Lessor, except for standard wear and tear owing to use; the Renter is liable for the cost of replacing any missing parts or accessories according to the Lessor‘s price list.
b. on the date specified under the terms of this Agreement, unless otherwise agreed at a later time;
c. to the premises of the Lessor, unless otherwise agreed;
d. with a full tank of fuel. If the vehicle is not returned with a full tank of fuel, the Lessor may charge the Renter for the amount of fuel needed to fill the fuel tank as well as a service fee under the terms of the tariff of the Lessor.
3. The Renter shall pay for fuel and other costs needed to operate the vehicle during the period that the Renter is responsible for the vehicle, including any new damage found. Within the meaning of this Agreement, this period does not expire until the Lessor has registered the vehicle as received in his system, which registration can only be performed during the office hours of the Lessor.
4. If the Renter 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 without further notice and at the cost of the Renter. Extended rental is subject to the approval of the Lessor. If the Renter returns the vehicle 29 min or more after expiry of the Agreement, the Lessor may demand up to a full day‘s rental charge under the terms hereof. For each day begun thereafter, the Lessor may levy charges pursuant to his tariff.
5. The vehicle shall be handled and driven carefully. Only those registered as authorised drivers on the front page of this Agreement are permitted to drive the vehicle. The Renter is liable for all damages to a third party or their property that will not be compensated for by the Lessor`s insurance company
6. The Renter may not engage in the following activities:
a. Driving on roads marked F on official maps as well as Kjalvegur road and through Kaldidalur valley, except for 4WD (four-wheel drive) vehicles which the Lessor agrees are suitable for driving on such roads. In the event of violation of the provisions of this sub-paragraph, the Lessor may impose a fine to the amount of 100.000 ISK. The above provision on fines does not affect the liability of the Renter to pay for damages.
b. Driving in or across rivers or any kind of water course. This prohibition does not apply to vehicles which the Lessor agrees are suitable for such driving, but such driving is always the responsibility of the Renter, cf. insurance terms and conditions.
c. Use of the vehicle that contravenes Icelandic law and/or the provisions hereof.
7. In the event of a collision or accident, the Renter shall immediately notify the appropriate police authorities as well as the Lessor of the incident, and the Renter shall not leave the scene before the police have arrived. The Renter shall immediately fill out a damage report if damage occurs. If the Renter fails to report damage, he shall be fully liable for it. A replacement vehicle is at the discretion of the Lessor and cannot be guaranteed.
8. If the Lessor needs to collect the vehicle, or have it collected, owing to a collision or an accident, the Renter shall bear all costs thereof pursuant to the tariff of the Lessor at each time.
9. The number of kilometres (km) that the vehicle is driven during the term hereof is determined by reading a normal odometer supplied with this vehicle by the manufacturer. The Renter shall notify the Lessor as soon as possible if the odometer is out of order or stops functioning during the rental period.
10. The Renter agrees to pay the Lessor upon request:
a. a deposit amounting to the estimated cost of renting the vehicle plus a moderate amount towards possible costs related to refuelling and fines for traffic rule violations.
b. all costs sustained by the Lessor from having to bring the vehicle back to his premises owing to it being left unattended without regard to the condition of the vehicle, roads or weather.
11. The Renter may not have repairs performed or modify the vehicle or its accessories, or permit any pledge of the vehicle as security.
12. The Renter is liable for all parking meter fines. An administration fee according to the Lessor’s pricelist will be charged for processing traffic fines and providing information as a result of violations of traffic law.
13. The Renter may not use the vehicle to transport passengers against payment, lend it or sublease it.
Obligations of the Lessor:
14. The Lessor will make every effort to deliver the vehicle at the agreed time and to ensure that it meets the requirements made upon it.
15. In the event that the vehicle malfunctions owing to wear or other reasons for which the Renter is not responsible, the Lessor shall supply the Renter with another vehicle as soon as possible or ensure that a repair is completed as soon as possible, at the location specified by the Renter. The above does not affect the payment of the rent or any other charges payable by the Renter hereunder. The Lessor pays no damages in cases such as provided here above, neither for accommodation nor other reasons.
16. The Lessor shall acquaint the Renter with the subject matter of this Agreement, in particular the obligations undertaken by the Renter upon signature hereof.
17. The Lessor shall make every effort to inform foreign Renters 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.
18. 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.
19. The Lessor undertakes to hold professional indemnity insurance at all times.
20. The Lessor shall not be responsible for the disappearance of or damage to items that the Renter or any other party stores or transports in the vehicle.
21. This Rental Agreement shall be kept in the vehicle at all times during the rental period.
22. Annexes and amendments to the terms and conditions thereof shall be made in writing.
23. Smoking is forbidden and a fine may be imposed if there are smoke fumes in the rental car. The lessor may impose an additional cleaning charge due to excessive dirt or fumes inside the rental car.
24. The Lessor may debit the bank card or credit card of the Renter for the rental charge and other costs payable by the Renter hereunder, such as payments in respect of damage to the vehicle while in the possession of the Renter. The time of payment and whether it is to be made in lump sum shall be the sole discretion of the Lessor. This right shall remain unaffected for 6 months following the return of the vehicle to the Lessor.
25. The Renter acknowledges by their signature on this agreement and on Rental Vehicle Condition report that they have received the vehicle and accessories in good condition.
26. Agreements concluded on the basis of the above terms and conditions, including possible claims for compensation that may be made, as applicable, shall be governed by Icelandic law. This applies both to the basis and calculation of compensation. The same applies to claims for compensation based on non-contractual liability. 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.
27. 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.
Conditions of Insurance as at 1 May 2014
Insurance Terms and Conditions
1 To whom does the policy apply
1.1 The policy applies to all renters 18 years old and over for passenger cars, 23 years for jeeps, 25 years old and over for minibuses. The renter must have been in possession of a driving licence for a minimum of 1 year. In the case of registration of an additional driver(s) this person’s driving licence must also be shown.
1.2 Additional driver(s) must be registered with AVIS / Budget at the start of the rental. It is only those persons who are listed in the rental contract that are allowed to drive the rental vehicle. The policy does not apply if the vehicle is driven by other persons than those who are listed in the rental contract,
1.3 If the maximum number of passengers for which the vehicle on the contract is registered is exceeded, the policy does not cover the excess passengers.
2 Where and when does the policy apply
2.1 The policy applies in Iceland.
2.2 If the journey is extended due to unforeseen and pressing reasons which are beyond the control of the Insured, the policy will be in force for 1 extra day.
3 Coverage of the policy
3.1 The policy includes the coverage stated in the specification in the rental contract.
3.2 Third Party Liability
The policy includes third party liability for injury to persons and damage to property caused by the vehicle. Accident insurance for the driver is also included. The policy is mandatory pursuant to Icelandic laws and Regulations.
3.3 Voluntary coverage
3.3.1 Collision insurance (Collision Damage Waiver) CDW
CDW reduces the renter’s costs in the case of damage to the vehicle to include only a mandatory excess amount of ISK 195.000, as long as the damage is not the result of theft, burglary or instances listed in articles 4.3 - 4.15. For 4wd jeeps and larger cars the excess amount is ISK 360.000.
When CDW is not taken out, the renter is fully responsible for damage. Liability can amount up to the full value of the vehicle.
3.3.2 Super CDW
Super CDW can be taken out at the place of rental and reduces the mandatory amount of excess to ISK 25.000 in the case of damage, as long as this is not the result of theft, burglary or instances listed in articles 4.3 - 4.15. For 4wd jeeps and larger cars the amount of excess is ISK 55 000.
When Super CDW is taken out, damage to front windshield is covered with an excess of ISK 0.
3.3.3 Theft Protection (TP)
The policy reduces the renter’s costs resulting from theft or burglary of the vehicle to only include an excess amount ISK 195.000. For 4wd jeeps and larger cars the excess amount is ISK 360.000. The insurance does not cover the personal property of the renter or passenger(s) in the rental vehicle resulting from theft or burglary.
When TP is not taken out, liability can amount up to the full value of the vehicle resulting from theft. The customer him- or herself is responsible for reporting theft and burglary to the Police.
3.3.4 Sand and ash insurance (SAP)
The policy covers damage to vehicles as a result of sandstorm and ash. The policy covers damage to paint, glass, lights, plastic parts, tyres and rims. Liability is limited upwards to amount stated in the rental contract.
4 General liability-limiting conditions for the policy
4.1 The insurance company is not liable for an insurance event which the insured has caused while driving the motor vehicle in a self-induced state of intoxication by alcohol or other intoxicating or anaesthetising substances. The same applies in an insurance event that is caused by another person while driving in such condition, if the insured has assisted in the use of the motor vehicle even though he or she knew or should have understood that the driver was under the influence of alcohol or other intoxicating or anaesthetising substances.
4.2 Limitation of liability in the case of violation of the safety regulations
a) The driver of the motor vehicle shall hold a valid driving licence for the type of vehicle in question.
b) The doors and boot of the motor vehicle shall be locked when the driver leaves the motor vehicle. All keys to the motor vehicle shall be stored in such a manner that unauthorised persons do not gain access to them.
c) Goods that are with the motor vehicle shall be appropriately secured so that they do not cause damage.
d) The motor vehicle shall not be used for participation in or training for speed racing or speed tests.
4.3 In case of damages not covered by Collision damage waiver (CDW) insurance, the Renter is responsible for all costs according to Lessor´s price list or cost estimate.
The Collision damage waiver (CDW) insurance does not cover:
4.4 Damage owing to war, revolution, civil unrest or rioting.
4.5 Damage inflicted by animals.
4.6 Holes burned into seats, carpets, mats or other parts of the interior.
4.7 Damage affecting only wheels, tires, suspension, batteries, glass (except for windscreens when additional insurance is purchased), radio receivers or loss by theft of parts of the vehicle and damage resulting therefrom.
4.8 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 a 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 resulting from loose rocks hitting the vehicle or the bottom of the vehicle whilst being driven.
4.9 Damage resulting from driving in places where the vehicle is not permitted to be driven, such as tracks, rough trails, in snowdrifts, on ice, across un-bridged rivers or streams, on beaches, on causeways accessible only at low tide or in other off-road areas.
4.10 Damage caused by sand, gravel, ash, pumice, or other earth material being blown onto the vehicle; Additional insurance, lowering the excess amount for such damages is offered by the Lessor for an additional fee.
4.11 Water damage to the vehicle.
4.12 Damage caused by sea spray/seawater if the vehicle is transported by sea.
4.13 In other respects, reference is made to the general terms and conditions for CDW insurance.
4.14 Damage resulting from gross negligence entails that the right to compensation lapses.
4.15 If the Lessor needs to collect the vehicle, or have it collected, owing to a collision or an accident, the Renter shall bear all costs thereof pursuant to the tariff of the Lessor at each time.
The insurer is Tryg Forsikring - Enterprise number 989 563 521. Adress: Folke Bernadottes vei 50, Postboks 7070, 5020 Bergen, Norway.
ALP hf only acts as an insurance intermediate.
If you have the opinion that the insurance company has made a mistake in cases concerning this insurance contract or in settlement of claims, you can lodge a complaint with:
The Norwegian Financial Services Complaints Board
PO Box 53 Skøyen, 0212 Oslo, Norway