Car Insurance for Self-Drive Tours

We recommend buying a Front Windscreen Protection (WP) and Sand & Ash Protection (SA) as extra insurances. Both are only available at the rental desk and cannot be booked in advance.

No rentals can take place without the main driver having a major credit card present issued in his name. Acceptable credit cards are: MasterCard, Visa, American Express and Diners Club. Prepaid credit cards cannot be accepted!

An authorization from the credit card will be taken at the start of all rentals as a deposit even if the cost of the rental is covered by a voucher. This deposit may be used to cover the insurance excess and any extra charges such as petrol and traffic tickets. Payment by cash or debit cards is not accepted at any time.

Car Hire Insurance Driver's License

The driver must present a valid driver's licence held for a minimum of one year at the time of rental.
An International Driving Permit (IDP) / International Driving License (IDL) is also required if your national driver's licence is not in Roman script. This is required for translation purposes and may only be used in conjunction with a national driving licence.

For vehicles for 9 seats or more, the driver is responsible for having a valid driving licence for those vehicle types (a D driving licence or a B licence).

Age Restrictions

To rent a vehicle in category 5.0 or higher, the driver must be 21 years old.

Third Party Liability

Third-party liability insurance and accident insurance for owner and driver will consist of the amount stipulated by Icelandic law at any given time. The Renter's own risk (also termed as "deductible", i.e., the amount that must be paid out of pocket by the Renter for covered losses before an insurance company pays a claim) with regard to damage to the vehicle amounts up to the full value of the vehicle.

Collision Damage Waiver (CDW)

Theft Protection (TP) included in CDW from 1 May 2014

This option limits your financial liability for damage to the vehicle, its parts and accessories, except theft, attempted theft or vandalism, provided the vehicle is used in accordance with the terms and conditions of the rental agreement.

If CDW is declined, you will be responsible for damage up to the full value of the vehicle.

CDW Non-Waivable Excess. All rentals are subject to a non-waivable excess (N.W), ranging from 195.000 ISK to 360.000 ISK depending on the vehicle group rented, for which you are responsible in the event of damage to the vehicle during the rental.

If you choose to rely on your credit card for cover, we strongly recommend that you fully understand the terms and conditions of any cover provided by your credit card company before you decline any of our optional services.

Super Collision Damage Waiver (SCDW)

The purchase of SCDW in addition to CDW reduces the non-waivable amount. Ranging from 25.000 ISK to 55.000 ISK for all other vehicles. SCDW is available at the rental desk and cannot be booked in advance.

Price per day for SCDW is 2.300 ISK for small vehicles or 2.900 ISK for jeeps.

Collision Damage Waiver (CDW) and
Super Collision Damage Waiver (SCDW)

The amounts of N.W fees vary, depending on how high the amount of damage they apply to. In respect of N.W fees and to which damage amounts such payments apply, a reference is made to the damage pricelist at any given time.

The payment of an N.W fee does not reduce the Renter's N.W because of damage to the vehicle in instances listed in full detail in the rental terms and conditions.

 CDW & SCDW do NOT cover:

  • Intentional damage or damage owing to gross negligence by the driver;
  • Damage resulting from the driver being under the influence of alcohol, stimulants or sedatives, or otherwise incapable of controlling the vehicle in a secure manner;
  • Damage owing to racing or test driving;
  • Damage owing to war, revolution, civil unrest or rioting;
  • damage inflicted by animals;
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  • Holes burned into seats, carpets or mats;
  • Damage affecting only wheels, tyres, suspension, batteries, glass ( except for windscreens when additional insurance is taken),radio receivers or loss by theft of parts of the vehicle and damage resulting there from;
  • 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 from stones being thrown up and striking the underside of the vehicle during driving,
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  • 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. However, compensation will be paid for damage resulting from the driver being forced to leave the roadway, e.g. for roadside repairs.
  • Damage to passenger vehicles that occurs during driving on roads marked F on official maps;
  • Damage caused by sand, gravel, ash, pumice, or other earth material being blown onto the vehicle;
  • Water damage to the vehicle; also damage caused by sea spray/seawater if the vehicle is transported by sea

Theft Protection (TP)<

Included in CDW from 1 May 2014

This option limits your financial liability for loss or theft of the Hertz vehicle, its parts and accessories, provided the vehicle is used in accordance with the terms and conditions of the rental agreement.

If TP is declined, you will be responsible for the cost of repairing or replacing the vehicle lost or damaged, following theft, attempted theft or vandalism up to the full value of the vehicle.

TP non-waivable excess.

All rentals are subject to a non-waivable excess fee, ranging from 195.000 ISK to 360.000 ISK, depending on the vehicle rented, for which you are responsible in case of loss or theft of the vehicle during the rental.

Front Windscreen Protection (WP)

This option will eliminate the Renters financial liability for damages, caused by gravel, on the front window and headlights. WP cannot be booked in advance and can only be purchased in combination with SCDW and is not sold separately.

Sand and Ash Protection (SA)

This option limits the Renters financial liability for damages caused by ash and sand. SA is available at the rental desk and cannot be booked in advance. SA can only be purchased in combination with CDW and is not sold separately.

These kinds of damages are uninsurable so by purchasing SA protection the client reduces his self-risk down to the same level as the CDW.

Price per day for SA is 1.900 ISK.

SA non-waivable excess (N.W).

When getting the SA, the same non-waivable rules will apply as if those insurances are bought separately. Excess fee ranging from 195.000 ISK to 360.000 ISK.

Damage Car Transport

The renter will always have to cover the cost for transporting the damaged vehicle.