• Rental amount: Total cost of rental, including additional cost, e.g. additional insurance.
  • Rental agreement: The binding contract that details the terms of rental you’ll be required to agree to and sign when NL Car rental releases a rental car to you.
  • Lessee: You, the person holding rights of use of the rental vehicle under the terms specified in the rental agreement.
  • Lessor: NL Car rental ehf, the owner of the rental vehicle that leases under the rental agreement to the lessee.


1.1 Drivers Age

Minimum rental age is 18 years.


1.2 Drivers License

All drivers must present a full and valid driving license that has been held for a minimum of 2 years. Also, a valid national identity card or passport needs to be presented at the time of pickup.

An International Driver’s License (IDL) is required if the lessee’s national driving license is not in Roman alphabet (For example if the license is in Arabic, Greek, Russian or Chinese). International driver license must be accompanied by the original domestic license of the driver.

1.3 TAX

Icelands VAT is 24% and is included in all prices.

1.4 Rental Period

All rentals are charged on a 24 hour basis. A full day is charged for any portion of a 24 hour period used.

1.5 Returning the Vehicle

Vehicles are to be returned to rental locations unless otherwise is stated on the rental contract.

1.6 Insurance Coverage

1.6.1 Collision Damage Waiver (CDW)

Included in the rental amount. Collision damage waiver (CDW) reduces the lessee’s financial responsibility to a part of the vehicle in case of damage to the excess/deductible amount.

The maximum excess amount for CDW is ISK 350,000 for all vehicles.

1.6.2 Theft Waiver (TW)

Included in the rental amount. Theft Waiver (TW) reduces the lessee’s financial responsibility for loss or theft off the vehicle to the excess/deductible amount.

The maximum excess amount for TW is ISK 350,000 for all cars

1.6.3 Sand and Ash Protection (SAP)

Sand and Ash Protection (SAP) reduces the lessee´s financial responsibility for damages cost by erosion or ash, which can damage the paint on cars permanently, to the excess/deductible amount.

The maximum excess amount for SAP is ISK 400,000 for all cars

SAP is available for additional ISK 2500 per day.

1.6.4 Super Collision Damage Waiver (SCDW)

Super Collision Damage Waiver (SCDW) reduces the lessee’s financial responsibility to a part of the vehicle in case of damage to the excess/deductible amount.
The maximum excess amount for SCDW is ISK 90,000 for all cars
SCDW is available for additional ISK 2,000 per day.

1.6.5 Gravel Protection (GP)

Gravel Protection (GP) fully covers damage to windshield and windows, lights and paintwork of the rented vehicle due to gravel or rocks thrown from other vehicles when passing them. Driver’s liability is taken to zero when this occurs.
GP is available for additional ISK 800 per day.

1.7 Car Types

1.7.1 Reserved Car Type not Available

We reserve the right to substitute vehicles when the reserved car type is not available, either with similar car or one in higher car group.

1.7.2 Driving on F roads, Kjölur (road 35) and Kaldidalur (road 550)

Vehicles without 4WD (Four wheel drive) not allowed to be driven on F roads, Kjölur (road 35) and Kaldidalur (road 550).

Should these restrictions be ignored all insurance (TPL, CDW, SCDW, TW, SAP, GP), if accepted, shall be deemed null and void. The driver will be held fully responsible in case of accidents and will bear all consequences, including the cost of repairing the damaged vehicle.

1.7.3 Off-road Driving

Driving vehicles off-road in all car groups is forbidden.

1.8 Penalty Fees

1.8.1 Off-road driving, ISK 100,000: No vehicle is allowed to do off-road driving and will cause a penalty fee of ISK 100,000.


1.8.2 Processing fee, ISK 5,000: A processing fee of ISK 5,000 will be charged for all parking tickets, speed tickets or if car is not returned full of gas.

1.8.3 Towing fee for damaged  immobile vehicles and vehicles dropped off at unauthorized locations, ISK 250 per km, with a minimum fee of ISK 30,000: The Leessee will have to pay all Towing costs for damaged caused by the driver, For breakdowns or towing due to damage caused by a third party will not include any penalty fee.

1.9 Breakdown Assistance

24/7 breakdown assistance is available.

1.10 Mileage

Unlimited Kilometers

1.11 Payment Methods

All booking are paid on location and are non-refundable after payment has been made.

1.12 Cancellation policy

Car rental is fully refundable until 48 hours before car rental starts

1.16 Smoking

Smoking is not allowed in the rental vehicle.

1.17 Included Extras

1.17.1 Navigation System

Navigation System is included, free of charge with every rental.


Obligation of the Lessee

  1. The lessee agrees to the provisions of this lease and has received a copy of it.
  2. The lessee will return the automobile.
  3. and all accessories (including tires and tools) in the condition they were in when received, with the exception of normal wear due to use
  4. on the date specified by this lease, unless otherwise greed later
  5. to the lessor’s premises, unless otherwise agreed.
  6. If the lessee does not return the automobile at the time agreed upon in this lase, 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 lessee’s cost. Extending the lease is dependent on the consent of the lessor. If the lessee 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 this lease.
  7. 4.The vehicle shall be handled and driven carefully. Only those named as drivers on the first page of this agreement are authorized to drive the automobile. The lessee is liable for damage resulting from use of the automobile for which no compensation will be paid by the vehicle’s insurance company. This includes damage to the automobile and/or injury to passengers due to the following:
  8. off-road driving
  9. driving across rivers or any kind of water course
  10. intentional acts or gross negligence
  11. use of intoxicants by the driver.
  12. vehicle use that contravenes Icelandic law and/or the provisions of this lease.
  13. In the event of collision or accident, the lessee shall immediately notify the appropriate police authorities as well as the lessor of the incident, and the lessee may not leave the scene before the police have arrived.
  14. The number of kilometers (km) that the vehicle is driven while this lease is in force is determined by reading a normal odometer supplied with the vehicle by the manufacturer. The lessee shall notify the lessor as soon as possible if the odometer is out of order or stops functioning during the terms of the lease.
  15. The lessor is not responsible for the disappearance of or damage to property that the lessee or any other party leaves in or transports with the vehicle.
  16. The lessee agrees to pay the lessor, upon request:
  17. deposit amounting to the estimated cost of hiring the car
  18. any and all expenses incurred by the lessor if he has to bring the vehicle back to his premises, without regard to the condition of the vehicle, the roads or the weather.
  19. The lessee 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.
  20. The lessee is liable for all parking meter charges and fines for braking traffic laws.
  21. The lessee is not authorized to use the vehicle to transport passengers for payment, loan it to others, or sublease it, without the prior consent of the lessor.

Obligations of the Lessor

  1. The lessor undertakes to supply the vehicle at the agreed time and to see that it meets the demands made for it.
  2. If the vehicle malfunctions, the lessor shall supply the lessee with a comparable vehicle as soon as possible. If the damages is minor, the lessor is authorized to have repairs done on the vehicle after obtaining the lessee’s consent.
  3. The lessor shall inform the lessee of the content of this agreement particularly as regards the obligations that the lessee undertakes by signing it.
  4. The lessor shall inform a foreign lessee 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.
  5. Of the lessor wants to limit use of the vehicle with regard to its equipment and/or read conditions, this shall be done in writing when this lease is signed.
  6. The lessor undertakes to maintain valid liability insurance for his business operations.


  1. The lease sum/rental fee includes mandatory vehicle insurance, including liability insurance and accident insurance for the driver and the owner.
  2. Third-party liability insurance will consist of the amount stipulated by Icelandic law at any given time.
  3. The lessee can purchase separate accident (All-risk) insurance. This policy will specify the amount deductible in each instance of loss.
  4. This accident/all-risk insurance does not cover:
  5. intentional damage or damage due to gross negligence on the part of the driver
  6. 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 a safe manner
  7. damage due to race or test driving
  8. damage due to war, revolution, civil unrest, riots
  9. damage done by animals
  10. holes burned into seats, carpets, or mats
  11. 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
  12. damage caused by driving on rough roads to the vehicle’s transmission drive, other parts that are in or attached to the chassis; damage to the chassis resulting from the vehicle scraping bottom on rough roads as a result of ridges being left by 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.
  13. damage 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
  14. damage caused by sand, gravel, ash, pumice, or other kinds of earth material being blown onto the vehicle.
  15. if the vehicle is transported by sea, no compensation will be paid for damages caused by sea spray/seawater
  16. in other instances, reference is made to the general conditions for accident /All-risks insurance.
  17. The lessee may purchase special gravel (GP), theft (TP), and water damage insurance (WP) from those car rentals/auto rentals that sell such policies.

General provisions

  1. This lease agreement shall always be kept in the vehicle during the term of the lease.
  2. Additions and amendments to the conditions and provisions of the lease agreement shall be made in writing.
  3. Icelandic law applies to agreements made on the basis of the terms cited 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 damages based on liability outside this agreement. If legal disputes arise concerning this lease agreement, the will be hard before the lessor’s legal venue.
  4. It should be pointed out that disputes between the parties to this lease agreement can be submitted to the active Arbitration committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.