Terms And Conditions


"Lessor" means the owner of vehicle who has listed it on CarRenters

"Lessee" means the party that rents a vehicle through CarRenters

"Rental period" means the time when the lessee is fully responsible for the vehicle according to the Car Rental Agreement.

"SCDW" Super Coalition Damage Weaver, reduces lessees self-risk

1. General terms

1.1) By registering with CarRenters, you agree to be legally bound by the Terms and Conditions set out below.

1.2) In case of a collision or other damages to the vehicle during the rental period CarRenters are permitted, upon request of the car owner, to charge a fee equivalent of the lessees self-risk directly after the incident. CarRenters will hold the amount until disputes are resolved regarding responsibilities of the coalition or damages.

1.3) By signing the Car Rental Agreement, lessee and lessor also agree to be legally bound by our Terms and Conditions. If the Car Rental Agreement appears to contradict these Terms and Conditions, the Car Rental Agreement takes precedence.

1.4) A person who lists a car on CarRenters must not reveal contact information or other booking website before a booking has been made. If the owner is a car rental company, the name of the car rental company cannot appear on the listing nor be communicated in messages until after a booking is made.

1.5) All payments will be conducted in Icelandic Kronas (ISK).

1.6) If for any reason the parties need to evaluate damages of the vehicle they agree to consult with a verified auto repair shop for evaluation, carreners.is can suggest a mechanic for such instances if needed.

1.7) Messages between parties at carrenters.is should not be considered private message in any legal understanding. They can be interpreted as a part of an agreement between parties. Employees of carrenters.is do have access to these messages and are entitled to look through them at any time. This can be done when handling disputes between parties and/or investigation do to suspicion of any misconduct such as breaking any of these terms.

2. Driving license

2.1) Lessee needs to have a valid driving license according to Icelandic law. Visitors, who don't have an EU/EEA driving license or a driving license written in the Roman alphabet, need to have an international driving license issued or a notarized English translation of theirs.

3. Method of payment, refunds & cancellation policy

3.1) Full payment for the rental of vehicles takes place when a rental request has been approved online by the owner of the vehicle.

3.2) If the lessee cancels a booking, 78% of the total fee/price can be refunded if cancellation is done 5 days (120 hours) before the rental period begins. CarRenters will always withhold its 22% commission. Bookings cancelled with less than 5 days have a no refund cancelation policy.

3.3) If the lessor fails to deliver the vehicle according to a booking he has accepted at some point, because of cancellation or whatever reason the lessee must be repaid upon request. CarRenters reserves the right to charge the lessor for an amount equivalent of 22% of the rental fee and all additional fees.

3.4) If a total or partial vehicle breakdown occurs, resulting in a non-functioning vehicle, the lessee must be repaid upon request for the days left of the rental period, counting from the day of the breakdown.

3.5) CarRenters pays car owners after the rental period. CarRenters has two paydays unless that day fall on a weekend or holiday than the next working day becomes the payday:

a) Every 2nd of the month payments are made to car owners for rentals that where completed between 15th of the previous month and the 31st of the previous month

b) Every 16th of the month payments are made to car owners for rentals that where completed between 1st of the current month and the 14th of the current month

3.6) When a booking is made, a credit card imprint will be taken for security reasons. This credit card imprint will only be accessible and stored through our Credit Card Service Company and will only be used for extra charges such as damages or fine. Note that according to the Car Returning Document the car owner is also permitted to charge the extra cost upon return of the vehicle if parties agree on the amount.

3.7) The lessee agrees to pay all extra charges, parking tickets, damages, tank refills or any other costs accrued during the rental period unless otherwise stated in this document or the Car Rental Agreement.

3.8) The lessee agrees to have at any time after he makes a booking amount equal to the self risk available on his card. CarRenters.is or the owner can demand that authorization to be taken on any time before or during the rental period begins or upon drop off. As an insurance of payment for damages.

3.9) In a case where lessee requests a refund or discount for any reason. Firstly, the owner and the lessee shall try to make an agreement regarding amount of refund.

If an agreement cannot be reached within 5 days between the owner and lessee. And if the owner has not fulfilled some of his obligations as stated in these terms, the owner accepts that carrenters.is may decide on amount of refund to the lessee do to inconveniences caused by the owners’ lack to fulfill his obligations. In such cases carrenters.is will refund its commissions respectively in relation to the owners refund.

4. Lessee's obligations

4.1) The lessee agrees to return all accessories of the vehicle in the same condition as they were in at the beginning of the rental period, except for normal wear and tear from normal use. If something is missing in the end of the rental period the lessee agrees to pay cost (market) price of individual items.

4.2) Generally, there are no prescribed limits on the distance the lessee may drive the rented vehicle each day.

4.3) The lessee is liable for all additional charges, such as parking meter charges and other fines for breaking traffic laws, for the duration of the leasing period.

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

4.5) The lessee agrees to return the vehicle at the agreed date and time, according to their lease, unless they have agreed otherwise with the lessor.

4.6) If the lessee does not return the vehicle at the time specified in the lease and does not arrange to extend the rental period, the lessor may try to repossess the vehicle or declare it missing to the police at the lessee's cost.

4.7) If the lessee returns the vehicle late, the following will apply:

a) If the lessee is 1/3 hour – 1 hours late, the lessee agrees to be charged an amount which is equivalent a half-day rental.

b) If the lessee is 1–6 hours late, the lessee agrees to be charged an amount which is equivalent a one day rental.

c) If the lessee is 6-12 hours late, the lessee agrees to be charged an amount which is equivalent two day's rental.

d) If the lessee is 12-24 hours late, the lessee agrees to be charged an amount which is equivalent to three day's rental.

e) For every additional day thereafter (whole or part), the lessor may charge the lessee double the original list price per day.

4.8) The lessee shall return the vehicle to the pick-up location or to another predefined place agreed between the parties. If the vehicle is returned to another location, the lessee agrees to be charged for any costs incurred by the lessor while collecting the vehicle.

4.9) The lessee agrees to return the vehicle with a full fuel tank. If the vehicle is not returned with a full fuel tank, the lessor is authorized to charge the lessee for refuelling the vehicle. However, this only applies if the fuel tank was full when delivered to the lessee. Otherwise, the vehicle should be returned with same amount of fuel as when the rental period began.

4.10) The lessee is responsible for all damage which violates these Terms and Conditions, the Car Rental Agreement, the car owner's insurance policy or national law. Whether there is damage to humans, animals, private properties or vehicle, including but not limited to loss caused by;

a) Off-road driving, for example on beaches or on paths and tracks. Driving on roads F-905, F-88, F-210 and F-249. F-210 and F-249 are marked roads only suitable specialised vehicles. Under no circumstances is it approved to drive on cars rented from carrenters.is on those.

b) Damage due to negligence or gross negligence.

c) Use of the vehicle that violates the Car Rental Agreement, these Terms and Conditions or national law.

4.11) The lessee agrees to drive the vehicle carefully.

4.12) The rented vehicle shall not be used to push, propel or tow another vehicle, trailer or any other thing without the written permission from the lessor.

4.13) The lessee must report any collisions to the lessor (and to the police, if necessary). Moreover, the lessee must write a damage report. The lessee will be held responsible for any damage not reported in this way.

4.14) If the lessor must collect the rental vehicle due to a collision or another form of damage that the lessee agrees to be charged for the transportation costs.

4.15) The lessee agrees to pay the lessor, upon request, any and all expenses incurred by the lessee. If the vehicle has been left somewhere without supervision, or without regard to the condition of the vehicle, the roads or the weather.

4.16) In case of any additional costs being charged to the lessee, such as costs due to damages to the car, parking fine, gas refill or speeding ticket. CarRenters charges additional 2.000 ISK service charge and 3% transaction fee to the lessee on top of the actual cost.

4.17) If the lessee drives on a F-marked road on a car that is not allowed on F-roads he agrees to pay the owner 50.000 ISK for additional stress and risk put on the car irrelevant of if any proven damages are shown on the car.

5. Obligations of the lessor

5.1) The lessor commits to deliver the vehicle according to the agreement.

5.2) If a total or partial vehicle breakdown occurs during the rental period, the lessor shall try to provide the lessee with a comparable vehicle. If the breakdown is minor, the lessor may arrange for the vehicle to be repaired at a workshop/garage, for which the lessor must pay. If the lessor chooses not to repair the car within a day, the lessee can leave the car where it is. The lessor is not responsible or obligated to provide the lessee with another vehicle if, for whatever reason, the lessee can't use the vehicle during the term of the rental period. Refunds/repayment should be according to article 3.4.

5.3) The lessor shall inform the lessee about the rules that apply to off-road driving, as well as on which roads the lessee may drive the vehicle.

5.4) The lessor is not responsible for any property that the lessee or any other party leaves in, or transports with, the vehicle.

5.5) The lessor commits to have mandatory vehicle insurance and accidental insurance for the drivers of the vehicle, which is included in the rental price.

5.6) The lessor accepts all responsibility of the vehicle state. CarRenters representatives will never see the vehicle as CarRenters only operate as intermediary between lessor and lessee.

5.7) The lessor shall make sure all safety equipment is in order, such as breaks and tires. Owner shall make sure the tires are in accordance to season and conditions.

5.8) The lessor takes full liability for the condition of the car. All legal liability of the cars state is transferred to the owner by renting it out through our platforms.

5.9) The lessor accepts full responsibility of getting a legal inspection of the car.

5.10) The lessor shall make sure that the car is equipped with spare tire or a functional solution to deal with punctured tire.

5.11) The owner agrees to change the car registration to car rental category (isl: “notkunarflokkur ökutækjaleigu”) at samgöngustofa. The owner accepts full responsibility if the lack to do so will result in any claims or costs for any reason such as validity his insurances.

5.12) When an owner registers his car he needs to list his insurance company. The car is not approved until the listed insurance company has approved the vehicle. If the owner changes his insurance company he needs announce so by sending an e-mail to [email protected]. If failure to do so will result in a car being rented without valid insurances the owner takes full responsibility on all potential legal claims and damages.

 6. Damages

6.1) The lessee is liable for damages to the vehicle and other items that might be included in the rental for an amount up to 330.000 ISK, which will be charged to the lessee's credit card if such damages occur. Including items may include tents, caravans and shall be detailed on the Car Rental Agreement.

6.2) Unlimited self risk is applied for the following instances:

a) Intentional damage or damage due to gross negligence on the part of the driver.

b) 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.

c) Damage due to race or test driving.

d) Damage due to war, revolution, civil unrest, or riots.

e) Damage done by animals.

f) Holes burned into seats, carpets, or mats.

g) Damage affecting only wheels, tires, suspension, batteries, glass, radios, or loss by theft of parts of the vehicle and damage resulting from this.

h) 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.

i) Damages resulting from driving in places where vehicle traffic is banned, such as paths, tracks, banks of snow, ice, un bridged rivers or streams, beaches, places only accessible at low tide, or other trackless areas.

j) Cost of fetching or towing the vehicle to the return location in the event of a collision or accident.

k) If the vehicle is transported by sea, no compensation will be paid for damage caused by sea spray/seawater.

l) Damage to vehicles caused by off road driving and driving on roads marked with an F in public maps as well as driving on Kjölur (Road 35) or Kaldidalur (road 550). (This does not extend to 4WD and all wheel drive cars accepted by owner to be driven on F-marked roads and displayed as allowed to be driven on F-roads on Car detail page at CarRenters.is). This does though apply in all cases for F905, F88, F202 and F209, driving these roads is always on lessors full responsibility.

m) Lessors loss because of the vehicle being stolen.

n) Water damage to the vehicle.

j) Damages due to sand ash, pumice or gravel.

o) Wind damages such as doors blowing up and damaging body parts & hinges.

6.3) If the vehicle is damaged by driving or acts that are in violation of these Terms and Conditions, the Car Rental Agreement, the car owner's insurance policy or national law, the self-risk is repealed and unlimited even if a SCDW has been bought. Unlimited self risk also applies to damages caused by any of the instances mentioned in article 6.2 a)-o)

6.4) No insurance covers damage to tires and under body, as well as all damages due to water. All related costs due to such damages are charged to the lessee.

6.5) Cost of fetching a vehicle is excluded from the self risk. If a car needs to be fetched due to an accident the cost of fetching comes on top of the self risk. If the owner decided to fetch the vehicle himself the owner can claim cost of 20.000 ISK + 100 ISK/km of asphalt road + 150 ISK/km on gravel road + 200 ISK/km on F-road. This cost can only be claimed if the reason for breakdown is how the lessor drove the vehicle. If the breakdown is due to normal wear and tear the cost of fetching is the owners responsibility.


7.1) The lessee can purchase separate accident (SCDW) Super Cost Damage Waiver. This policy will specify the amount deductible in each instance of loss.

7.2) Each self-risk only applies to one incident. In instances of more damage that obviously did not occur at one and the same time, each self-risk SCDW applies to only one incident.

7.3) This Super Collision Damage Waiver - SCDW does not cover instances 6.2 to 6.5.

8. Taxes

8.1) When an individual lets out his vehicle through our platforms we operate as an intermediary between the lessor and the lessee. In such cases we invoice the lessor (owner) for our commission. We withdraw that amount from the total payment and transfer the remaining amount to the lessor. It is the lessor responsibility to determine if he should collect VAT as part of the amount received or not. We recommend user to consult with a tax professional.

8.2) If a car is owned by a company, the lessor (owner) is aware that he will need to have his own car rental license. When car rental cars are rented through our platform we invoice the lessee for the total amount and the car rental company needs to invoice us for their amount.

9. Disclaimer

9.1) We are solely an intermediary between the parties (lessor and lessee). We will do everything we can to make sure that contracts are honoured. However, we cannot be held responsible for anything concerning contracts between a lessor and a lessee. We will try to assist in collecting all payments (e.g. costs incurred by damage to a vehicle), but we cannot be held responsible if problems with payments occur.

The terms and conditions where updated 6th of February 2022. Bookings made prior to that might be subjected to different terms and conditions.

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