Terms and Conditions for Iceland 4x4 Car Rental

Age Requirements and Documents

The registered driver must be at least 18 years of age and have held a full driver's license for at least 12 months. You need a valid driver's license, passport and a credit card to rent a vehicle at Iceland 4x4 car rental.


In Iceland it is mandatory for children to be seated in safety seats while travel in vehicles. Safety seats are available for pre-order. Read more on the SafeTravel website.

Drop-off and pickup locations

We provide shuttle service from the arrival hall inside the Keflavík International Airport. Once you've gone through customs you enter the arrival hall where our agent will be waiting and holding a sign with Iceland 4x4 Car Rental on it. Our shuttle service is also available from hotels in Keflavík, please note either a flight number or hotel name during the booking process. See our article on arriving in Iceland.

Vehicle Types

We reserve the right to substitute vehicles if the booked vehicle is not available at the time of rental, or is damaged during the rental period. The substitute vehicle may be of another type but equal in size and ability or better.


All our cars run on gasoline or diesel. We deliver the car with a full tank and the car should be returned with a full tank. If the fuel tank is less than full we will top it off and charge for the extra fuel in addition to a small refill fee (according to our pricelist at given time).


Third-party 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 are included in your rental. Please note that insurance does not cover damage to cars:

  • Undercarriage.
  • Wheels or rims.
  • Door structure (frame, hinges, etc.) caused by wind gusts.
  • River crossing.
  • Roof.
  • Lost key.
  • Towing. 

See full insurance terms and conditions.

Collision Damage Waiver (CDW)

Third party liability insurance shall be equivalent to the amount stipulated by Icelandic law at the time. The lessee is fully responsible for any and all damage to the car. Normally by purchasing 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 stated on the front side of the rental agreement, CDW is included in the price of all our rental cars. The lessee is able to purchase a Super Collision Damage Waiver (SCDW) and by doing so further lower the own-risk; 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 the rental agreement.

However, no insurance covers damages to the underside of the rented vehicle or damages due to driving through rivers or any kind of waterways, windblown door, roof, tires, rims, towing, lost keys. 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 below.

Gravel Protection (GP)

The lessee can purchase GP; this protection includes damage to windscreen, headlights, paintwork and other parts of the car, damaged by gravel that gets thrown at the vehicle by passing cars or oncoming traffic. The deductible is ZERO.

Theft Protection (TP)

Theft protection (TP) covers theft of the rented vehicle. By choosing TP the renter is able to lower the self-risk, in case of theft, from 290.000 ISK down to no cost. It is noted that in case of gross negligence on behalf of the lessee that leads to theft of the vehicle, the TP is void!

The lessee is not allowed to leave Iceland in the rented vehicle.

Sand and Ash Protection (SAAP)

Iceland randomly experiences high-velocity ash and sandstorms, especially in the southern and eastern parts of the country where even a short drive in such conditions can cause considerable damage. Insurance companies do not cover damage caused by ash-and sandstorms and without SAAP the renter is responsible for the full cost of the damage without limitation of an excess. The renter is able to purchase Sand and Ash Protection (SAAP) insurance that covers damage to paint, windows, lights, plastics, chromes and wheels of the rental cars, caused by sand, gravel, ash, pumice, or other earth materials being blown onto the vehicle. The deductible is ZERO with SAAP. 


Local value added tax 24% (VAT) is included in all prices and is non-refundable.

Reservation and Cancellation Policy

A credit card imprint and a deposit of 290.000,- ISK will be taken at the start of all rentals for security reasons, even when a voucher covers the cost of the rental (not in the case if the customer has purchased insurances that lower the self-risk and deposit amount). This credit card imprint may be used to pay all extra charges such as extra insurance, speeding and parking fines, damages or cost other than specified in the contract due to lessee’s use of the rented vehicle. The general rule is that we charge your credit card at the day of booking the car. If you have special wishes regarding payment, please contact us at: info@rent4x4.is.

  • The minimum rental period is 24 hours, If a vehicle is returned over an hour late, an extra 24 hours will be charged.
  • The maximum rental period is 31 days, if longer rental is required please contact us at info@rent4x4.is.

Cancellation policy is as follows:

  • Cancellations 48 hours before rental pick up time are fully refundable.

Rental Agreement

Obligations of the Lessee

The lessee agrees to the provisions of this lease and has received a copy of it.

The lessee will return the automobile and all accessories (including tires and tools) in the condition they were in when received, with the exception of normal wear due to use, on the date specified by this lease, unless otherwise agreed later, to the lessor's premises, unless otherwise agreed.

If the lessee does not return the automobile at the time agreed upon in this 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 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.

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:

  • Off-road driving,
  • Driving across rivers or any kind of watercourse,
  • Intentional acts or gross negligence,
  • Use of intoxicants by the driver,
  • Vehicle use that contravenes Icelandic law and/or the provisions of this lease.

In the event of a 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.

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 term of the lease.

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.

The lessee agrees to pay the lessor, upon request

A deposit amounting to the estimated cost of hiring the car,

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 the condition of the vehicle, the roads, or the weather.

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.

The lessee is liable for all parking meter charges and fines for breaking traffic laws during his rental.

The lessee is not authorized to use the vehicle to transport passengers for payment, loan it to others, or sublease it.

Obligations of the Lessor

The lessor undertakes to supply the vehicle at the agreed time and to see that it meets the demands made for it. If the vehicle malfunctions, the lessor shall supply the lessee with a comparable vehicle as soon as possible or latest within 24 hours. If the damage is minor, the lessor is authorized to have repairs done on the vehicle after obtaining the lessee's consent.

The lessor shall inform the lessee of the content of this agreement, particularly as regards the obligations that the lessee undertakes by signing it.

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. If the lessor wants to limit use of the vehicle with regard to its equipment and/or road conditions, this shall be done in writing when this lease is signed.

The lessor undertakes to maintain valid liability insurance for his business operations.


The lease sum/rental fee includes mandatory vehicle insurance, including liability insurance and accident insurance for the driver and the owner.

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

The lessee can purchase separate accident (All-risks) insurance. This policy will specify the amount deductible in each instance of loss.

The CDW and SCDW or PIP do not cover the following:

  • 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 a safe manner,
  • Damage due to race or test driving,
  • Damage due to war, revolution, civil unrest, 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 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,
  • 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. However, compensation will be paid for damage if the driver is forced to leave the road, for example, due to road repairs.
  • Damage 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.
  • In other instances, reference is made to the general conditions for CDW and SCDW insurance.

The lessee may purchase special Gravel protection (GP), Theft protection (TP) and Sand and Ash protection (SAAP). In addition, insurance packages are available: Standard Insurance Package (SIP) includes SCDW,GP,TP. Premium Insurance Package (PIP) includes SCDW,GP,TP,SAAP with ZERO self risk.

General provisions

This lease agreement shall always be kept in the vehicle during the term of the lease.

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

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, they will be heard before the lessor's legal venue.

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.