Terms and Conditions

General Rental and Booking Conditions

Rental Terms & Conditions

Renter´s Obligation

1. Signing

1.1. The renter agrees to the terms and conditions of the rental by signing the rental agreement, of which he will receive a digital copy or a printed copy upon request. The renter is named in the rental agreement.

1.2. The renter is required to sign a copy of the rental agreement with a digital signature through a qualified signature equipment certified, cf. Act No. 28/2001 on electronic signatures.  

1.3. By signing the rental agreement and vehicle condition report the renter agrees that the vehicle and extra equipment he has received are in good condition.  

1.4. By signing the rental agreement, the renter consents to his credit card to be debited by rental company for the rental charges and any other costs payable by the renter to rental company according to the terms of the rental. The rental company is entitled to charge renter´s card for any compensation relating to the rental such as damages to the vehicle whilst the vehicle was in the renter’s contractual custody. The time of payment and whether it is to be paid in full or instalments is solely at the rental company’s discretion. The rental company reserves this right up to 12 months after the end of the rental agreement. 

1.5. The credit card provided at the beginning of the rental cannot be changed during the rental. 

1.6. Payment for damage to the vehicle may be paid with a different payment option.  

2. Beginning the Rental

2.1. Renter agrees that the rental company can take a pre-authorization on an approved credit card (MasterCard, Visa or American Express that is in the renter’s name).  Debit cards are only approved if renter is willing to accept the risk that part of the authorization will not be refunded. This is due to the well-known and common communication problem between the issuer of debit cards and the payment handler. The rental company is not responsible if the pre-authorization on debit cards are lost. The pre-authorization amount covers the estimated cost of any extras, fuel, potential additional days, toll and road fees, parking fines, administration fees and all other miscellaneous charges.  

2.2. Driver must be at least 18 years old. All drivers must have held their license for at least one year before the start of the rental.  The driver must hold a valid licence throughout the period stated in the rental agreement.  In other respects, Icelandic law shall apply to the driver.  

2.3. Drivers who are 18-19 years old are subject to an additional young driver fee.    

2.4. Luxury cars and other specialty vehicle categories: Drivers must be 23 years old.

2.5. All drivers are required to present an appropriate driver’s license, valid for the car group rented, at the beginning of the rental. Copies are not accepted.

2.6. Drivers must bring an international driver’s license or an official translation if:  

2.6.1. The driver’s license was issued in a non-roman alphabet like  Arabic, Chinese, Greek, Russian, Hebrew or Japanese or other similar non - roman alphabet-based languages.  

2.6.2. The driver’s license was issued outside of Europe or North America.

2.6.3. Additional drivers must be registered on the rental agreement and meet the same driver’s license criteria that the main driver does.  

2.7. At the start of the rental the renter will receive the vehicle with a full tank of fuel. The renter is responsible to refill the tank with the correct fuel during the rental period. The correct fuel-type is specified in the rental agreement.  

3. During the Rental

3.1. It is the renter’s responsibility to ensure the vehicle is treated and driven carefully and responsibly.  Only the renter and any registered additional driver, that meet the terms in Article 2, are authorised to drive the vehicle. The renter is liable for all damages to a third party or their property which is not covered by a mandatory third-party liability insurance according to Icelandic law.  

3.2. In case of a collision or an accident, renter must immediately notify the appropriate police authorities as well as the rental company. The driver must not leave the scene of the accident until he has notified the rental company and / or authorities and he must fill out a damage report form describing the incident.  If another party is involved, they should contribute and sign on the damage report form. If the renter fails to report damage incurred during his rental, he is liable for any cost resulting from the accident. If renter requires a replacement vehicle, the rental company will make every effort to provide one once damage on the previous vehicle is fully processed. This, however, is no guarantee for the replacement vehicle and the rental company reserves the right to refuse a replacement vehicle or a vehicle in the same category as the damaged one, including but not limited to incidents when the collision or accident is caused by the reckless driving of the renter or additional driver, the renter refuses to pay for damage or refuses to sign necessary reports.

3.3. In cases where the vehicle needs to be towed due to an accident or collision, the renter is fully responsible for the cost to do so. The price of which is decided at the rental company’s discretion.  

3.4. Renter is responsible for returning the vehicle to one of the rental company’s rental locations. If the vehicle is not returned to one of the rental locations the renter is liable for all costs sustained by rental company due to bringing the vehicle back to its premises without regard to the condition of the vehicle, roads or weather.

3.5. Renter is responsible for planning his journey carefully so that he is aware of road conditions, weather forecast and any road closures or general warnings.

3.6. Renter is prohibited from:

3.6.1. Driving on Highland roads marked F on official maps, as well as Kjalvegur (road 35) and Kaldidalur (road 550) unless in a 4WD (four-wheel drive) jeep or SUV which the rental company agrees is suitable for driving on such roads. By violating this article the rental company may void the contract and confiscate the vehicle. In addition, the rental company may impose a fine for possible damages for the amount of ISK 100.000. If the renter is charged  this fine it does not affect the renter‘s obligation to pay for any further damages or expenses.

3.6.2. Driving in/or across rivers and/or streams.This prohibition does not apply to vehicles which the rental company agrees are suitable for such driving, however the renter must take full responsibility for the consequences of such driving. Such driving is on the responsibility of the renter and the renter needs to make himself familiar with the insurance terms and conditions in that respect.

3.6.3. Driving on tracks or trails which do not have road numbers, beaches and other ‘off-road’ terrain.

3.6.4. Driving in snowdrifts and on ice.

3.6.5. Using the vehicle in any way that contravenes Icelandic law or the conditions laid out in the rental agreement and its terms and conditions.

3.7. The renter is responsible for the cost of refuelling and all costs associated with driving for the duration of the rental period.  Renter‘s rental period starts when he picks-up the vehicle and ends when the rental company acknowledges that the vehicle and keys have been returned and the vehicle has been examined.  For the rental company to inspect the vehicle upon return renter must return the vehicle during office hours to an employee at the agreed rental location. If renter chooses to drop-off the vehicle ‘out of hours’ or if he leaves before the rental company checks the vehicle, the renter does so at his own risk and remains responsible for the condition of the vehicle until a staffmember of the rental company has examined it.

3.8. The total amount of kilometers (km) that the vehicle has driven during the rental period is determined by reading the odometer supplied inside the vehicle by the manufacturer.  Any attempt to change the odometer reading or to disable it is considered gross negligence and in violation of this agreement

3.9. Smoking is prohibited in the vehicle. Rental company reserves the right to fine the renter according to the rental company‘s tariff if it is discovered that this rule has been violated. Renter is also subject to be charged for cleaning fees should the vehicle be returned in an unacceptable state or should there be dirt or a bad odor of the interior of the vehicle. All prices are set at the discretion of the rental company.

3.10. Renter is financially responsible for all parking, speeding and traffic fines as well as any road tolls during the rental period. Rental company reserves the right to charge the renter for these fines as well as taking an administration fee for handling the payment and providing information to the appropriate authorities. All prices are set at rental company‘s discretion.

3.11. Renter is neither authorized to carry out any repairs or modification to the vehicle or any additional  equipment leased by rental company nor is the renter allowed to let anyone else work on the vehicle without the rental company‘s prior agreement.

3.12. Renter is prohibited from using the vehicle to transport passengers for payment, lending the vehicle to a third party not registered on the rental agreement or subletting the vehicle.

3.13. Renter is not permitted to travel with the vehicle outside of the country in any circumstances. 

4. Returning the vehicle

4.1. Renter must return the vehicle, any secondary parts as well as optional extras (such as tires, tools, GPS and WIFI devices, as well as cables and fasteners and child seats) in the same condition he received them. Rental company will allow for normal wear and tear; bearing in mind the distance the renter travelled and the length of his rental. Rental company will add the cost of any damage found to the amount the renter must pay for the rental period and rental company will charge renter´s credit card for this amount. All prices are set at rental company´s discretion.

4.2. Vehicles must be returned with a full tank of fuel. If the vehicle is not returned with a full tank of fuel, the rental company reserves the right to charge for the missing fuel at a rate that includes a service fee which is set at rental company’s discretion.

4.3. Unless agreed differently the renter must return the vehicle and any optional extras he rented to the return location stated on his rental agreement by the end date and time. If the vehicle is not returned to the agreed location at the specified time, then the police or the rental company is authorized to repossess the vehicle without further notice at renter’s expense.  Extending the rental is subject to the consent of the rental company and if the renter’s -credit card can be authorized for the cost of the extension. If the renter fails to extend the rental and is more than 29 minutes late returning the vehicle, his rental will be extended, and he will be charged an extra day´s rental, including extras and insurances, for each day until the vehicle is returned.

4.4. If the renter returns the vehicle outside of business hours he is responsible for the vehicle until a member of staff has examined the vehicle upon receiving the keys. Renter must:

4.4.1. leave any optional extras in the boot/trunk (GPS, WIFI etc.),

4.4.2. park the vehicle in a safe and secure way at the return location,

4.4.3. leave the key in a secure key deposit box provided at the rental location. Renter is liable for the sum of any fines levied on the vehicle because of the way he left it.

4.5. Renter must return the vehicle to the rental company’s premises unless rental company has agreed otherwise.

4.6. Renter agrees that rental company can charge all costs incurred during the rental to his -credit card. In the case of failure to meet this agreement rental company reserves the right to take legal action for collections, for which renter is financially liable for.

5. Rental company´s obligation

​​​​​5.1. The rental company must provide the vehicle in a good roadworthy condition, properly taxed and registered according to Act No. 65/2015 on the renting of vehicles subject to mandatory registration of vehicles.

5.2. Rental company undertakes the responsibility to hold professional indemnity insurance, always.

5.3. The rental company must inform renter of the content of the rental agreement and the obligations he faces when signing it.

5.4. The rental company will make every effort to inform renter of Icelandic traffic regulations, traffic signs and the prohibited driving behaviours such as driving off-road. The rental company will also advise caution towards animals on the roads.

5.5. If the vehicle malfunctions due to normal wear and tear, rental company intends to provide another vehicle as soon as possible or ensure that repairs are made as soon as possible. This does not affect the rental payment or any other charges due during the rental period. In such cases, rental company is not liable for cost such as accommodation, airline tickets, or other laid out cost.

5.6. Rental company is not responsible for the loss or damage to any property kept inside the vehicle.  

6. General Conditions

​​​​​​6.1. Additions and changes to the rental agreement, terms and conditions and vehicle condition report shall be made in writing.

Booking Terms & Conditions and rental extensions

Pre-paid Booking Terms & Conditions 

This online reservation facility (whether the reservation is confirmed or not) does not constitute a contract for the supply of vehicle rental services. A contract takes effect upon the start of the rental and will be governed by the law of the country of rental. In case we are unable or at our discretion decline to provide rental services, a full refund of the prepaid amount will be issued.

Our prepaid vouchers showing a specified value will be accepted as a means of payment of the reservation charges at rental counters. The voucher must be accompanied by a credit card both for security and to cover the charges not included in the voucher value, such as fuel, extras, additional days, or any miscellaneous charge (deep cleaning, collection fee etc).

All rentals may be subject to additional surcharges (e.g. for special equipment, additional drivers, young drivers, optional insurances, fuel etc.). You will also be subject to standard rental conditions as to eligibility to rent including (but not limited to) the possession of a valid driver’s license, the satisfaction of minimum age requirements and arrangements regarding payment of rental charges (including pre-authorised charges and credit checks where applicable) that we require. You must fulfil all rental qualifications and requirements at the time of pick-up; it will not be sufficient for you to meet them at the time of reservation.

The voucher is valid only for the dates and value specified.


If a prepaid reservation needs to be amended, the original voucher will be cancelled, the original amount refunded by means of a credit to the customer´s credit card. A new voucher will be issued showing a value to reflect the modified reservation. The customer´s credit card will be debited with the new charge.

Administration charges will not apply to amended bookings, unless the amendment significantly changes the original booking, in which case it will be subject to the cancellation fee detailed below.
All requests to amend a booking will be subject to normal availability of the requested vehicle.
Prices may change between the date of the original booking and the amended booking, in which case the later prices will apply.

Please note that amendments can only be made by sending an email to avis@avis.is or calling +354-591-4000. 


Customers may cancel a prepaid booking free of charge and receive a full refund in case we are advised 3 days prior to pick-up date.

For cancellations of rentals with less than 3 days´ notice, a cancellation fee of 40 EUR will be applied.

Please note that cancellations can only be made by sending an email to avis@avis.is or calling +354-591-4000. 

Unused days / No shows

There will be no refund for unused rental days on a prepaid voucher when the rental period is shortened.

There will be no refund if the customer fails to show for a rental that has not been cancelled prior to the start date.

Rental Extensions

If the rental period needs to be extended once the car has been picked up, local rental rate and policy will apply for the additional days and the additional charges will be settled by customer's credit card. Extensions are subject to availability.