Terms & Conditions

Terms & Conditions

Obligations of the Renter

1. 1.The renter agrees to the provisions of this Rental Agreement and will receive a copy of it and its terms and conditions.
2. 2.The renter confirms they have received the named vehicle and its accessories in proper and safe condition, and confirms Foss Car Rental's right to substitute vehicles with similar or upgraded alternatives when the reserved vehicle type is not available.
3. 3.The renter/driver must be at least 20 years old and have held a valid driver's licence for at least one year prior to rental, and must present the licence upon signing this Agreement. To rent a large-body SUV, campervan, or minibus, the renter must be at least 23 years of age. The renter/driver must abide by Icelandic law and regulations at all times.
4. 4.The renter is responsible for the rented vehicle from the moment it leaves the Foss Car Rental premises until Foss Car Rental signs for its return.
5. 5.The renter shall return the vehicle:
   • a.With all accessories (including tyres, tools, documents, and other items) in the same condition as received, except for normal wear and tear. Missing or damaged accessories will be charged at cost to the credit/debit card provided at the start of the rental.
   • b.At the predetermined time and date stated in the Rental Agreement, or sooner if Foss Car Rental requests it.
   • c.To Foss Car Rental premises, unless otherwise agreed in writing. Failure to do so is subject to a drop-off charge as per Foss Car Rental's current price list.
   • d.With the fuel tank or battery at the same level as received. If the prepaid fuel option was purchased, the vehicle may be returned at any level with no credit for remaining fuel.
   • e.Sufficiently clean. A vehicle returned excessively dirty is subject to a cleaning fee per Foss Car Rental's current price list.
   • f.Free of smoke odour. All vehicles are non-smoking — see Prohibited Conduct (Article 12f).
6. 6.Extension of the Rental Agreement is subject to availability and must be approved by Foss Car Rental in writing. Return of the vehicle one hour or more after the agreed time may result in a charge of up to one full additional day's rental fee plus an ISK 10,000 late return fine. A one-way fee of ISK 10,950 applies to pick-ups or drop-offs at locations other than KEF airport or our Keflavík office (Hlíðarvegur 2428). Pick-ups and drop-offs outside of office hours (07:30–17:00) are subject to an after-hours fee of EUR 35.
7. 7.Only registered drivers named in this Agreement may operate the vehicle. If driven by an unregistered person, all insurances become null and void and the renter bears full liability for any damages.
8. 8.The renter bears objective liability for damages resulting from use of the vehicle that are not covered by insurance, including damages resulting from:
   • a.Driving off-road, on beaches, in water, or in any trackless area.
   • b.Driving in or across rivers or any body of water.
   • c.Intentional acts, gross negligence, or total carelessness.
   • d.Operating the vehicle under the influence of alcohol or illegal substances.
   • e.Use of the vehicle in breach of Icelandic law or this Agreement.
   • f.Driving on roads closed by the Icelandic Road Administration (vegagerdin.is).
   • g.Driving a non-4WD vehicle on F-marked highland roads, including Kjölur/Kjalvegur (Road 35), Sprengisandur (Road 26), Kaldidalur (Road 550), and Jökulhálsleið (Road 570). Violation is subject to a Foss Car Rental fine of ISK 300,000 in addition to any police fines.
9. 9.In the event of a collision, accident, or damage of any kind — regardless of CDW/SCDW coverage — the renter must:
   • a.Immediately notify Foss Car Rental by phone.
   • b.Not move or leave the scene until a damage report has been completed (either Foss Car Rental's own accident form, a police report, or both, as directed by Foss Car Rental staff).
   • c.Obtain the names, contact details, and insurance information of any other parties involved.
   • d.Report all damage regardless of how minor it may appear.
10. 10.The number of kilometres travelled is determined by the odometer. The renter must notify Foss Car Rental without delay if the odometer stops functioning.
11. 11.The renter is responsible for all fines and charges arising from use of the vehicle, including traffic violations, speeding, parking, tolls, and road tax charges. A handling fee of up to ISK 4,500 is charged by Foss Car Rental for any inquiry or fine it must respond to on the renter's behalf.
12. 12.The renter/driver may not:
    • a.Drive where prohibited by Icelandic law. Fine: ISK 300,000 plus any police fines.
    • b.Drive a non-4WD vehicle on F-marked highland or mountain roads, including Kjölur/Kjalvegur (Road 35), Sprengisandur (Road 26), Kaldidalur (Road 550), and Jökulhálsleið (Road 570), without prior written approval from Foss Car Rental. Fine: ISK 300,000 plus ISK 15 per km on restricted roads and any police fines.
    • c.Operate the vehicle under the influence of alcohol or illegal substances. Fine: ISK 150,000 plus any police fines.
    • d.Drive in or across water or rivers without assuming full personal liability for all resulting damage.
    • e.Drive on snow banks, ice, glaciers, or frozen lakes.
    • f.Smoke inside the vehicle. Cleaning and penalty fee: minimum ISK 45,000.
    • g.Take the vehicle outside Iceland without prior written permission from Foss Car Rental.
    • h.Allow an unregistered driver to operate the vehicle. Fine: ISK 45,000.
13. 13.The renter agrees to pay Foss Car Rental upon request: (a) a deposit equivalent to the expected rental cost; (b) all expenses for transporting the vehicle back if left unattended or abandoned; (c) all expenses arising from the renter's use of the vehicle in breach of this Agreement.
14. 14.The renter is not authorised to have repairs or modifications made to the vehicle, or to offer the vehicle as collateral, without prior written consent from Foss Car Rental.
15. 15.The renter may not use the vehicle for transporting passengers for payment, lend it to others, or sublet it in any form.

Obligations of Foss Car Rental

1. 16.Foss Car Rental guarantees that the vehicle meets all official registration and safety standards. Foss Car Rental reserves the right to substitute vehicles with similar or upgraded alternatives when reserved vehicle types are not available.
2. 17.If the vehicle malfunctions due to normal wear and tear or reasons not attributable to the renter, Foss Car Rental shall deliver a comparable replacement vehicle as quickly as possible, or arrange repairs without delay. In such cases, Foss Car Rental does not pay compensation for accommodation or other incidental expenses. A refund will be issued for any full rental day the renter is unable to use a vehicle for a continuous period exceeding 24 hours.
3. 18.Foss Car Rental must inform the renter of the contents of this Rental Agreement, and in particular the obligations the renter undertakes by signing it.
4. 19.Foss Car Rental shall, to the extent practicable, inform foreign renters of Icelandic traffic regulations, road signs, and off-road driving prohibitions, including risks posed by animals, gravel roads, river crossings, and icy conditions.
5. 20.If Foss Car Rental wishes to impose limitations on the use of the vehicle with regard to its equipment and/or road conditions, this shall be communicated in writing at the time of signing this Agreement.
6. 21.Foss Car Rental guarantees to maintain valid third-party liability insurance for all vehicles in its fleet.
7. 22.Foss Car Rental accepts no responsibility for damage to, or disappearance of, personal items stored in or transported on the vehicle by the renter or any other party.
8. 23.Foss Car Rental accepts no responsibility for personal items left in the vehicle after drop-off. If an item is located upon request, Foss Car Rental can arrange to ship it to its owner. A minimum handling fee of ISK 4,500 applies, varying by size and destination.

Insurance & Own Risk

1. 24.The rental fee includes mandatory vehicle insurance, comprising third-party liability insurance and accident insurance for the driver, as required by Icelandic law. Foss Car Rental acts as an insurance distributor on behalf of TM hf.
2. 25.Mandatory third-party liability insurance is included in accordance with Icelandic statutory requirements. In the specific event that the renter causes damage to a third-party vehicle without any simultaneous damage to the rental vehicle, the renter's personal liability excess for that incident is ISK 90,000.
3. 26.In the event of damage to the rental vehicle, the renter bears full financial responsibility up to a base excess of ISK 349,000 (approx. USD 2,990 / EUR 2,490). The renter may purchase a Collision Damage Waiver (CDW) to reduce this liability to the lower excess amount stated in the Rental Agreement. CDW holders may additionally purchase a Super Collision Damage Waiver (SCDW) to further reduce this amount.
4. 27.Insurance does not cover, under any circumstances:
   • a.Intentional damage or damage caused by gross negligence.
   • b.Damage resulting from driving under the influence of alcohol or illegal substances.
   • c.Damage caused by an unregistered driver.
   • d.Damage caused by racing or test driving.
   • e.Damage caused by war, revolution, civil unrest, or riots.
   • f.Damage caused by animals.
   • g.Burns to seats, carpets, or mats.
   • h.Damage from driving off-road, on beaches, in rivers, or in trackless areas.
   • i.Damage from driving on F-marked roads (Kjölur/Road 35, Sprengisandur/Road 26, Kaldidalur/Road 550, Jökulhálsleið/Road 570) in non-approved or non-4WD vehicles.
   • j.Damage to the exterior roof caused by standing, sitting, or climbing on the vehicle.
   • k.Damage from sea spray or seawater during sea transport.
   • l.Damage from adding the wrong fuel type, or adding fuel, water, or oil to the wrong tank or reservoir.
   • m.Damage to tyres, wheels, suspension, battery, glass, or radio — unless the Liability Waiver has been purchased.
   • n.Damage to the underside of the vehicle, including the transmission, drive shaft, and chassis.
   • o.Damage to the electrical system or engine caused by water when driving over rivers or flooded roads.
   • p.Damage caused by wind forcing a door open beyond its stop.
   • q.Damage caused by sand, gravel, volcanic ash, or pumice — unless SAAP insurance or the Liability Waiver has been purchased.
5. 28.The renter may purchase Gravel Protection (GP) or Theft Protection (TP) to reduce the relevant excess to zero, with the exception of cracked windscreens (ISK 190,000 for 4×4 vehicles / ISK 90,000 for 2WD vehicles) and underside damage, for which the renter remains fully liable.
6. 29.The renter may purchase Sand and Ash Protection (SAAP), which covers damage to paintwork, windows, lights, plastic, chrome, and wheels caused by sand, gravel, volcanic ash, pumice, or similar material. The excess per incident under SAAP is ISK 90,000.
7. 30.The renter may purchase a Liability Waiver to waive liability for any damage otherwise covered by CDW/SCDW, GP, TP, SAAP, or Tyre Protection. Damages falling outside the scope of insurance as listed in Article 27 are not covered by the Liability Waiver.
8. 31.If the renter requires roadside or breakdown assistance as a result of their own actions, Foss Car Rental will charge the renter for retrieval at a rate of ISK 350 per km (minimum ISK 35,000), calculated from the Keflavík office at Hlíðarvegur 2428.

General Provisions

1. 32.The minimum rental charge is equivalent to 72 hours (three days), regardless of the actual duration of the rental. When the vehicle is returned two or more hours after the agreed pick-up time, it is treated as one additional full rental day.
2. 33.The renter confirms by signing this Agreement that the vehicle and all its accessories have been received in good condition.
3. 34.A copy of this Rental Agreement and its terms and conditions shall remain in the vehicle throughout the rental period.
4. 35.Non-refundable bookings cannot be refunded upon cancellation. For refundable bookings, cancellation must occur more than 48 hours prior to the scheduled pick-up time to qualify for a full refund. No-shows and cancellations made within 48 hours of pick-up will be charged the full rental amount. Early returns are permitted but no refund is issued for unused rental time unless the booking was cancelled more than 48 hours before the original pick-up time.
5. 36.All changes to an existing booking are subject to availability and must be confirmed in writing by a Foss Car Rental representative.
6. 37.Foss Car Rental is authorised to repossess the vehicle without prior notice if it has been illegally parked, used in breach of this Agreement, or appears to have been abandoned. The renter shall bear all costs arising from such action.
7. 38.All additions and amendments to this Rental Agreement must be made and confirmed in writing by an authorised Foss Car Rental representative.
8. 39.All rentals are subject to the full terms and conditions of this Agreement as in force at the time of rental. A credit/debit card imprint will be taken at the start of the rental for security purposes.
9. 40.By providing credit or debit card details, the renter authorises Foss Car Rental to charge the card for the rental fee and any fees, charges, or fines arising from this Agreement. This authorisation remains valid for up to six months after the rental period ends.
10. 41.Foss Car Rental reserves the right to refuse any rental at its sole discretion if booking information is incomplete, inaccurate, or otherwise unsatisfactory.
11. 42.This Rental Agreement is governed by the laws of Iceland. Any legal disputes shall be heard before the District Court of Reykjanes, Iceland.
12. 43.Any dispute between the parties may be submitted to the Arbitration Committee jointly operated by the Icelandic Consumers Association and the Icelandic Travel Industry Association.
13. 44.Data Protection. Foss Car Rental collects and processes personal data (including name, contact details, passport or driver's licence number, and payment card information) for the purpose of fulfilling this Rental Agreement and for legal compliance. Data is retained for up to six months after the rental period for the purpose of resolving any disputes or outstanding charges, and thereafter in accordance with applicable Icelandic and EEA data protection law (GDPR). Personal data will not be shared with third parties except where required to fulfil this Agreement (e.g. insurance providers) or where required by law. The renter has the right to access, correct, or request deletion of their personal data by contacting info@fosscarrental.com.