Terms and Conditions

Our Terms for renting a car in Iceland

For traveling in Iceland - you do not need 4x4 cars when just traveling on the main road but if you intend to go into the highland we recommend you to use 4x4.

Just let us know what your plan is and we will gladly help you make your trip in Iceland a very good one.

When you are making your booking for the car please take a good look at the car size, luggage and number of people that can be in the car - this is very important for your trip so that you feel good in the car when traveling.

Just call us tel (+354) 666-2600 or email info@acarrental.is and let us know your needs.

A full drivers license must have been held for at least 12 months and must be presented at the start of the rental.
Renter must be 23 years of age for small cars and 25 to rent a jeep.

Privacy Policy
Processing of personal data is in accordance to The privacy and processing act.(Act 90/2018 of Icelandic Laws).

All rentals are subject to the full rental agreement terms and conditions at the time of rental. A credit card imprint will be taken at the start of all rentals for security reasons, even when a voucher covers the cost of the rental. This credit card imprint may be used to pay all extra charges including extra insurance, parking fines, fuel, damages or any cost due to the rented car as a result of the renters use of the car.

For customers in the Reykjavik area staying at hotels, guest-houses or other accommodation we offer free transfer to and from the rental location. For customers arriving at Keflavik airport we offer pick-up and delivery, at a normal additional charge, to the International Airport as well as anywhere else within the Reykjavik area.

We reserve the right to substitute vehicles when the reserved car types is not availble.

The rental car will have a full tank of fuel. The car should be returned full, otherwise a refuelling charge of 23 EUR. will apply plus added fuel (will be charged on credit card).

Local value added tax (VAT) is 24% and it is included in the price

In Iceland it is mandatory for young children to travel in safety seats while in a vehicle. Child seats are availble if pre-ordered. These child seats are generally suitable for children aged from 6 months to +4 years of age.

In order to guarantee your reservation we require a valid credit card number, we charge your credit card at your booking. Cancel 30 days before pay 30%. If cancelled is 15-8 days before booked pickup time and pay 60%. Cancel 7 days before or a no-show at the pick up time you pay 80% off the rental.

Third part liability is equivalent to the amount stipulated by Icelandic law at each time. This also applies to the amount of individual driver liability. Third party coverage and personal accident insurance is automatically included in your rental.

Included in prices is standard insurance. The lessee can purchase separate accident (CDW) insurance. This policy will specify the liability of renter in each instance of loss. Own risk in CDW is 200.000 isk and 350.000 for 4x4. You can buy SCDW and lower your own risk to 50.000 and 100.000 for 4x4.

This Collision Damage Waiver - CDW does NOT cover:


  • Intentional damage or damage due to gross negligence on the part of the driver.
  • 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.
  • Damage due to race or test driving.
  • Damage due to war, revolution, civil unrest or riots.
  • Damage done by animals.
  • Holes burned into seats, carpets or mats.
  • 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.
  • 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.
  • 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.
  • Damages caused by sand, gravel, ash, pumice, or other kinds of earth material being blown onto the vehicle.
  • If the vehicle is transported by sea, no compensation will be paid for damage caused by sea spray/seawater.
  • Damage to vehicles caused by driving on roads marked with an F in public maps as well as driving on Kjölur (Road 35) or Kaldidalur (road 550)
  • Lessors loss because of the vehicle being stolen.
  • Water damage to the vehicle.

General provisions for renting a car in Iceland:

Insurance: Third party liability insurance shall be equivalent to the amount stipulated by Icelandic law each time. The lessee is totally responsible for any and all damage to the car. By purchasing Collision Damage Waiver - CDW the lessee can insure himself against the disbursement of the driver liability; the amount of the own-risk fee is according to lessor´s pricelist at given time and is also stated on the front side of this rental agreement. If lessee has already purchased CDW insurance he/she is able to purchase SCDW insurance and by doing so further lower the own-risk.

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 lessee’s full responsibility. Please see more about insurance in the articles here above.

This rental agreement, and any agreements, made on the basis of this agreement and its provisions, fall under the auspices of Icelandic law. 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 damages based on liability outside this agreement. If legal disputes arise concerning this lease agreement, they will be heard before Acarrental's legal venue, the district court of Reykjavík, Iceland.
This protection includes damage to the car when gravel or rocks get thrown on the vehicle by another car. The gravel protection is available for ISK 2000,- per day. Deductible is 15.000 isk.

TP covers theft of rental vehicle. The TP is available for ISK 700,- per day. Own risk is 0 isk.


Call 112. Break down service 24 hours tel: (+354) 666-2600


  • GPS system EUR 13 per day (insurance EUR 200 in case if lost or damaged)
  • Map of Iceland and Reykjavik are available at the rental location.