General information regarding our insurance policies

Included insurance policies

When you book a car through our website, or any of our affiliate booking platforms, there are four insurances that are included in the price. Each insurance has a liability (excess). That means if you have damaged the car when you return it, you will be charged the liability (excess) amount.

Collision damage waiver and super collision damage waiver (CDW/SCDW) (included)

• CDW and SCDW cover the bodywork of the car. In a collision, the bodywork is usually the first thing that gets damaged. The liability (excess) depends on the size of the car. For 2WD vehicles, the liability (excess) is 190.000 ISK (approx. $700/€620) and for 4WD vehicles it is 290.000 ISK (approx. $2.300/€2.000).

Example: You bring back a 2WD vehicle with a noticeable dent on the passenger side door. Upon inspection, we confirm that this damage was not present when you collected the car. Our staff will inform you of the new damage and apply a charge of 190,000 ISK (approx. $700/€620). This amount is the maximum you will ever be charged. If a third-party repair assessment determines that fixing the damage costs less than 190,000 ISK ($700/€620), we will refund you the difference.

Gravel protection (included)

• Gravel protection covers paint chips due to stone throw while driving at no cost. It also covers the windscreen, headlights, and mirrors; however, the liability (excess) for each of these in case of cracking is 90,000 ISK (approx. 650 EUR).

Theft Protection (TP) (included)

• Our vehicles are always covered by insurance if they are stolen. Theft protection has no liability (excess). Note that TP does not cover stolen personal items from within the vehicle.

Additional insurance policies

* Please note: Insurances can only be applied before the rental period starts, not during or after the rental period.

Sand and Ash Protection (SAAP)

• Sand damage is a very common damage, especially on the south coast, and is not limited to a specific season. Sand and ash damages are very costly with costs ranging from 500.000 ISK (approx. 3.500 EUR) to 1.500.000 ISK (approx. 10.500 EUR).
• Without SAAP the cost for the damage is the lessee‘s responsibility entirely.
• The SAAP reduces the liability down to 90.000 ISK (approx. $700/€620).
• Price per day is 3.490 ISK.

Liability Waiver

• Reduces liability on each insurance down to zero.
• This includes damages covered by CDW/SCDW, GP, TP, Tire Protection, and SAAP.
• However, damages as listed in Article 29 and 32 in the rental agreement and Ts&Cs, e.g., intentional damages, damages caused by negligence or from driving where prohibited, are absolutely excluded.
• Prices per day are as follows:
  • 6.490 ISK (4WD)
  • 4.490 ISK (2WD)

The following damages are not covered by any insurance policy:

• Damages caused by negligence or driving while intoxicated.
• Damages to the tires and service related to changing or repairing the tires.
• Damages to the underside of the car.
• Damages caused by driving into waters, rivers, or off-roading.
• Damages caused to the clutch or other mechanical damages resulting from the lessee‘s negligence or misuse of the car.
• Damage caused when adding the wrong fuel type in the fuel tank of the vehicle, or by adding fuel, water, oil, or other solvents in the wrong tank of the vehicle.
• Damages to the interior of the car.
• Damage caused by sand and ash storm (only applies if the lessee has not opted for the SAAP or the Liability Waiver insurance).

The following charges are not covered by any insurance policy:

• Charges or other costs for required assistance because of a breakdown or damage that is the driver’s responsibility.
• Charges when adding the wrong fuel type in the fuel tank of the vehicle or by adding fuel, water, oil, or other solvents in the wrong tank of the vehicle.
• Charges for losing accessories, such as the car key or a GPS unit.
• Service charges and handling fees related to the renter‘s use of the car, such as fines for speeding, parking fee, and tunnel fee.
• General charges for towing, resulting from the renter‘s misuse or mistakes such as getting stuck in snow, sand, water, or river. (Please see full details listed on the backside of the rental agreement.)

* Note: By purchasing Roadside Assistance Waiver any cost for the abovementioned assistance is reduced to zero apart from service charges or handling fees related to speeding, parking violation or parking-, tunnel-, or other entrance fees. Keep in mind that the Roadside Assistance Waiver only covers service charges but never charges for the damages that the renter causes.

Obligations of the renter

1. The renter agrees to the provisions of this Rental Agreement and will receive a copy of it and its terms and conditions.
2. The renter confirms he has received the mentioned vehicle and its accessories in proper and safe condition and confirms Foss Car Rental’s right to substitute vehicles with similar or upgraded vehicle when the reserved vehicle types are not available.
3. The renter/driver shall be at least 20 years old and shall have held a valid driver’s license for at least one year before renting the vehicle and must present the license on signing the Rental Agreement. To rent a large size SUV or a passenger car the renter must be 23 years of age. The renter/driver shall abide by Icelandic law and regulations when driving.
4. The renter shall be responsible for the rented vehicle from the time it leaves the Foss Car Rental office until Foss Car Rental signs for the vehicle as returned.
5. The renter shall return the vehicle as stated below:
   1. With all accessories (including tires, tools, documents, and other items) in the same condition they were in when received, except for normal wear and tear due to normal use. The renter agrees that missing or damaged accessories will be charged at cost price to the credit/debit card which the renter provided at the beginning of the rental.
   2. At the predetermined time and date as stated in the Rental Agreement or sooner if Foss Car Rental demands it.
   3. To Foss Car Rental premises, unless otherwise agreed in writing. Failing to do so is subject to a drop-off charge as per Foss Car Rental´s current price list. The renter agrees that the drop-off charge will be charged from the credit/debit card which the renter provided at the beginning of the rental.
   4. With the fuel tank or battery percentage in the same level as received and stated on the inspection form, unless the renter purchases the prepaid fuel option. If the renter purchases the prepaid fuel option, he can return the vehicle with the fuel tank at any level and without refuelling but no credit is made for fuel left in the tank at the time of return. The renter agrees that a charge to the credit/debit card, which the renter provided at the beginning of the rental, is made for missing fuel or battery charge. Service charge is determined by Foss Car Rental´s current price list.
   5. Sufficiently clean, not excessively dirty. The interior should not be excessively dirty. The exterior should not be excessively dirty, i.e., not covered in mud, tar, or dirt. A vehicle returned excessively dirty is subject to a clean-up fee according to Foss Car Rental´s current price list. The renter agrees that the clean-up fee will be charged from the credit/debit card which the renter provided at the beginning of the rental.
   6. All vehicles are non-smoking.
6. An extension of the Rental Agreement is dependent on the approval of Foss Car Rental. If the renter returns the vehicle one hour or more after the expiry of the Rental Agreement, Foss Car Rental is permitted to charge the renter for up to a whole day’s rental fee according to this agreement in addition to a 10.000 ISK fine for a late return. For each day thereafter Foss Car Rental may collect fees according to its price list.

Deliveries/returns in Reykjavík area:
Upon request, deliveries and returns in the Reykjavík area can be arranged. A one-way fee in the amount of 10.950 ISK is charged for pick ups and drop offs outside of KEF airport or our offices at Iðavellir 2, 230 Keflavík. The renter agrees that any such charge may be charged from the credit/debit card which the renter provided at the beginning of the rental. Failing to return the vehicle at the agreed return time pursuant to this Rental Agreement or informing Foss Car Rental of the renter’s intention to extend the rental, Foss Car Rental or the police are also permitted to repossess the vehicle without further notice and at the expense of the renter.

7. The vehicle shall be handled and driven with due care. Only those registered as drivers in this Rental Agreement, who also fulfil the requirements in Article 2, are permitted to drive the vehicle. If the vehicle is driven by an unregistered person, all insurances become null and void, in which instance the renter is fully liable for the vehicle, for damage it may sustain, damage it may cause others, items or vehicles, and obligates to pay such damage in full. The cost of damages occurring under such circumstances may be charged from the credit/debit card which the renter provided at the beginning of the rental.
8. The renter has objective liability for damages resulting from the use of the vehicle for which no compensation will be paid by the vehicle insurance. This includes damages to the vehicle and/or injury to passengers on account of:
   1. Driving where prohibited by law, that is off beaten tracks or marked roads, in unmarked paths or tracks, on beaches or other sandy areas, in shoals of water or any other trackless areas.
   2. Driving in or across rivers or any kind of water course
   3. Intentional acts, gross negligence, or total carelessness of the driver.
   4. Operating the vehicle under the influence of alcohol, controlled or illegal substances.
   5. Use of the vehicle that is in breach of Icelandic law and/or the provisions of this Rental Agreement.
   6. Driving on closed roads as published by the Icelandic Road Administration (www.road.is)
   7. Driving vehicles that are not four-wheel drive (4×4, 4WD or AWD) or specifically approved for F-marked road driving on roads that are F-marked on official maps. The same applies to Kjalvegur past Gullfoss waterfall (Part of Road No. 35 past Gullfoss waterfall) through Kaldidalur (Road No. 550) and Jökulhálsleið (Road No. 570). Violation of this article is subject to a fine of ISK 300.000 by Foss Car Rental in addition to the fine charged by the police.

   The renter agrees that the cost of damages as well as incurring overhead caused by any of the above actions, may be charged from the credit/debit card provided by the renter at the beginning of the rental.

9. In case of a collision or accident, the renter shall immediately notify Foss Car Rental of the incident. The renter may not leave the scene before an accident report has been completed. The renter is obligated to report any damages to the vehicle to Foss Car Rental, regardless of any collision damage waivers (CDW or SCDW) assigned to the rental.
10. The number of kilometers (km) that the vehicle has travelled while this Rental Agreement is in effect determined by the reading of the appropriate meter supplied by the manufacturer of the vehicle. The renter shall notify Foss Car Rental, without delay, if the odometer is out of order or stops functioning during the rental period.
11. The renter is responsible for any fines or charges that result from his/her use of the rented vehicle. This includes but is not limited to traffic violations, speeding and/or speed camera fines, parking, toll charges, and road tax charges. A handling fee up to ISK 4.500 is charged by Foss Car Rental for any inquiry the company must respond to or any fine or charges Foss Car Rental must pay due to the renter’s/driver’s use of the rented vehicle. The renter agrees that this fee and any fines or other charges may be charged from the credit/debit card provided by the renter at the beginning of the rental.
12. The renter/driver may not:
    1. Driving the vehicle where prohibited by law, i.e., closed roads as published by the Icelandic Road Administration, off beaten tracks, or marked roads, in unmarked paths or tracks, on beaches or other sandy areas, or any other trackless areas. Any renter/driver caught in breach of this article is subject to a fine of ISK 300.000 by Foss Car Rental in addition to the fine charged by the police. The renter agrees that these fines may be charged from the credit/debit card provided by the renter at the beginning of the rental.
    2. Drive the vehicle on mountain or highland roads, or roads marked “F” on a map or a road sign, including Kjölur (road 35), Kaldidalur (road 550) and Sprengisandur (road 26) routes, unless the vehicle is a 4-wheel drive–or all-wheel drive–and intended and accepted for such use by Foss Car Rental. Failing to comply with this article is subject to a fine of a minimum ISK 75.000, plus ISK 15 for each km driven on a restricted road. The renter agrees that this fine may be charged from the credit/debit card provided by the renter at the beginning of the rental.
    3. Operate the vehicle under the influence of alcohol, controlled or illegal substances. Violation of this article is subject to a fine of ISK 150.000 by Foss Car Rental in addition to the fine charged by the police.
    4. Drive in or across water or rivers of any kind, without assuming all responsibility for the vehicle.
    5. Drive on banks of snow, or ice, on glaciers, or on frozen lakes.
    6. Smoke in the vehicle. Evidence of smoking in the vehicle, such as stubs, ashes, or odour, will result in a clean-up fee of minimum ISK 45.000. The renter agrees that this fee may be charged from the credit/debit card provided by the renter at the beginning of the rental.
    7. Take the vehicle anywhere outside of Iceland without written and signed permission from Foss Car Rental.
    8. Allow an unregistered driver to drive the vehicle. Violation of this article is subject to a fine of ISK 45.000 by Foss Car Rental.

    The aforementioned provisions on fines do not affect the obligations of the renter to pay Foss Car Rental compensation for loss or damage to the vehicle.

13. In case of a collision or accident, the renter shall immediately notify Foss Car Rental of the incident. The renter may not leave the scene before an accident report has been completed. The renter is obligated to report any damages to the vehicle to Foss Car Rental, regardless of any collision damage waivers (CDW or SCDW) assigned to the rental.
14. The renter agrees to pay Foss Car Rental upon request:
    1. A deposit equivalent to the expected cost of hiring the vehicle or any fines or charges that result from the renter’s use of the rented vehicle as stipulated in Article 11.
    2. All expenses accruing to Foss Car Rental in transporting the vehicle back to its premises, if it has been left unattended and without supervision.
    3. Expenses that may arise from the renter’s use of the vehicle
15. The renter is not authorized to have repairs or changes made to the vehicle or its accessories, or to put the vehicle up as any kind of collateral or guarantee, without the prior, written consent of Foss Car Rental.
16. The renter is not permitted to use the vehicle for transportation of passengers for payment, lend it to others, or sublet it.

Obligations of Foss Car Rental

17. Foss Car Rental guarantees that the vehicle meets the set demands, and that all official registration standards are met. Foss Car Rental reserves the right to substitute vehicles when the reserved vehicle types are not available. Foss Car Rental cannot always guarantee the brand, but will guarantee a similar vehicle or an upgrade instead
18. If the vehicle malfunctions owing to normal wear and tear, or for other reasons for which the renter cannot be held responsible, Foss Car Rental shall deliver the renter with a comparable vehicle as quickly as possible at a location decided by Foss Car Rental or arrange to have repairs done without delay by a Foss Car Rental service partner. In the event of such malfunction, Foss Car Rental does not pay any kind of compensation, neither for accommodation nor for other reasons. A refund will be made for a lost rental day if the renter is unable to use the rented vehicle for a period over 24 hours.
19. Foss Car Rental must inform the renter of the contents of this Rental Agreement, particularly of the obligations that the renter undertakes by signing it.
20. Foss Car Rental shall, to the extent possible, inform a foreign renter on Icelandic traffic regulations, traffic signs, and regulations on the prohibition of off-road driving. Furthermore, Foss Car Rental shall especially point out the risks posed by animals on the roads, on gravel roads and icy roads.
21. If Foss Car Rental wants to limit the use of the vehicle with regard to its equipment and/or road conditions, this shall be done in writing upon signing of this Rental Agreement.
22. Foss Car Rental guarantees to maintain valid liability insurance for its operations.
23. Foss Car Rental cannot be held responsible for damage or disappearance on items stowed or transported in or on the vehicle by the renter or any other party.
24. Foss Car Rental cannot be held responsible for items left in the rented vehicle after drop-off. Upon request and if the item is found, Foss Car Rental can ship the item back to its owner. A handling fee of ISK 4.500 minimum is charged by Foss Car Rental. Prices vary and depend on the size of the object and the distance of shipment. The renter agrees that this fee may be charged from the credit/debit card provided by the renter at the beginning of the rental.

Insurance and own risk

25. The rental fee includes mandatory vehicle insurance, including liability insurance and accident insurance for the driver and the owner. Foss Car Rental is an insurance distributor on behalf of TM hf and accepts as such, or reserves the right to accept as such, remuneration or commission from the renter for purchased insurances.
26. Third-party liability insurance will consist of the amount stipulated by Icelandic law at any given time. If for some reason, the renter causes damages to a third-party vehicle, without causing damages to the rented vehicle, the third-party liability is a total of ISK 90.000
27. In case of damage to the vehicle, the renter is fully responsible. The renter can purchase a separate accident insurance against damage to the vehicle, a Collision Damage Waiver (CDW), which sets the amount which the renter is responsible for, in each case of damage, to the amount stipulated on the front of this Rental Agreement. Any renter who has purchased CDW can also purchase a Super Collision Damage Waiver (SCDW), which further reduces the amount the renter is responsible for, in each case of damage, to the amount stipulated on the front of this Rental Agreement. The renter agrees that the excess amount stipulated on the front of this Rental Agreement may be charged from the credit/debit card provided at the beginning of the rental. Reference is made to the general conditions for accident insurance (Icelandic: Kaskótrygging) as set by TM insurance company at www.tm.is.
28. The accident insurances mentioned in Article 27 do not cover:
    1. Intentional damages or damages due to gross negligence on the part of the driver.
    2. Damages resulting from the driver being under the influence of alcohol, controlled or illegal substances, or in any other way incapable of driving the vehicle in a safe manner.
    3. Damages caused by a non-registered driver.
    4. Damages caused by a race or test driving.
    5. Damages caused by war, revolution, civil unrest, or riots.
    6. Damages done by animals.
    7. Holes burned into seats, carpets, or mats.
    8. Damage resulting from driving in places where driving is banned, such as paths, tracks, banks of snow, ice, lakes, unbridged rivers or streams, beaches, places only accessible at low tide, or other trackless areas.
    9. Damage to the vehicle caused by driving on mountain or highland roads, or roads marked “F” on a map or a road sign, including the Kjölur (road 35), Kaldidalur (road 550) and Sprengisandur (road 26) routes. (This does not apply to vehicles accepted by Foss Car Rental for use on the aforementioned roads).
    10. Damage caused to the top of the vehicle from standing, sitting, mounting, or climbing on the car or from any other action that does not fall under regular use of the car.
    11. Damage caused by sea spray/ seawater if the vehicle is transported by sea.
    12. Damage caused when adding the wrong fuel type in the fuel tank of the vehicle or by adding fuel, water, oil, or other solvents in the wrong tank of the vehicle.
    13. Damage to the tires, wheels, suspensions, batteries, glass, radios, or loss by theft of parts of the vehicle and damage resulting from this, unless the renter purchases the Liability Waiver.
    14. Damage caused to the underside of the vehicle. This includes but is not limited to damages to the transmission, the drive or drive shaft, and other parts in or attached to the chassis or damages occurring when stones or other materials are thrown up, striking the underside of the vehicle when being driven.
    15. Damage to the vehicle, its electrical system, accessories, or engine caused by water when driving over rivers, pools of water or in lakes.
    16. Damage caused by wind blowing up the door.
    17. Damage caused by sand, gravel, ash, pumice, or other kind of earth material being blown onto the vehicle, unless the renter purchases SAAP insurance or the Liability Waiver.

    The renter agrees that any damages not covered by the insurance of the vehicle may be charged from the credit/debit card provided at the beginning of the rental.

29. The renter may purchase special waivers for damages caused by gravel (GP) or theft (TP) from Foss Car Rental. These waivers lower the excess amount of the renter in each case of damage to paint or windows caused by gravel, or loss due to theft of the vehicle, to zero except for a damaged or cracked front windshield or damage to the underside of the vehicle. The excess amount for damaged or cracked windshield is ISK 190.000 for 4x4s and 90.000 for 2WD vehicles, and in case of damage to the underside the renter bears all the cost.
30. The renter may purchase Sand and Ash Protection (SAAP), which covers damage to the vehicle´s paint, windows, lights, plastic, chromes, and wheels, which is caused by sand, gravel, ash, pumice, or other earth material being blown onto the vehicle. The excess amount in each case of damage is ISK 90.000 as stipulated on the front of this Rental Agreement.
31. The renter may purchase a Liability Waiver to waive the liability in case of any damage covered by CDW/SCDW, GP, TP, SAAP, and Tire Protection and is subject to the terms and conditions of this Rental Agreement. Excluded are damages not covered by the accident insurances, as stated in Article 28 of this Rental Agreement, unless specially exempted.
32. In case the renter requires Roadside- and Breakdown Assistance because of a breakdown, accident, damage, or other reasons that is the driver’s / renter’s responsibility, Foss Car Rental will charge the renter for the assistance. The retrieval fee for picking up the rental vehicle because of damage or other reasons that can be related to the renter’s responsibility is ISK 350 per km or a minimum of ISK 35.000. The ISK 350 per km charge is calculated from Foss Car Rental’s Keflavík Office at Iðavellir 2, 230 Keflavík.

General provisions

33. The minimum rental period charges at Foss Car Rental are equivalent to 72 hours rental, even though renters are free to rent the car for a shorter period. When the drop-off time is two hours or more after the pick-up time, it is regarded as a full day.
34. The renter confirms with his or her signature on this Rental Agreement, the terms and conditions and inspection form that he or she has received the car and its accessories in good condition.
35. This Rental Agreement with its terms and conditions shall remain in the car during the rental period.
36. Any changes to the rental are subject to availability and must be done in writing. In case of a cancellation, the full rental price is non-refundable if the renter opts for a non-refundable booking. For refundable bookings, the rental needs to be cancelled more than 24 hours prior to the rental pick-up for a full refund. In case of a no show or cancellation within 24 hours prior to the rental pick-up, the full rental price will be charged. Early returns are allowed. However, no refunds can be given for unused, or partly used vehicle hire vouchers unless the amendments or cancellations have been made more than 24 hours prior to the rental pick-up.
37. Foss Car Rental is authorized to repossess the vehicle at their discretion and without notice if the vehicle has been illegally parked or used in a manner that does not conform with the conditions of this Rental Agreement or law and regulations, or if the vehicle appears to be abandoned. The renter will pay for the costs arising from such measures.
38. Additions and amendments to the conditions and provisions of this Rental Agreement shall be made in writing and confirmed in writing by a Foss Car Rental representative.
39. All rentals are subject to the full rental agreement terms and conditions at the time of rental. A credit/debit card imprint will be taken at the start of the rental for security reasons, even when a voucher covers the cost of the rental. This credit/debit card imprint may be used to pay all extra charges, fines, charges for damages or any cost due to the rented vehicle as a result of the renter’s use of the vehicle.
40. By providing his/her credit card details to Foss Car Rental, the renter agrees with his/her electronic consent and/or signature on this Rental Agreement that Foss Car Rental is authorized to charge the card for the rental fee and any other fees, charges or fines that may arise from this Rental Agreement, as according to price list within terms & conditions or amounts stipulated on the front and back of this rental agreement. This includes but is not limited to:
    1. Article 5. a) Missing or damaged accessories.
    2. Article 5. c) Drop-off charges.
    3. Article 5. d) Fuel- or battery charges.
    4. Article 5.e) Clean-up charges.
    5. Article 6. Late return, one way fee and related costs.
    6. Article 7. Damages to the car by others than registered renter/driver.
    7. Article 8. Damages to the car by the renter/driver.
    8. Article 11, 14 and 24. Fines, charges, deposit, road tax fees and handling fees.
    9. Article 12.a). Fines for driving were prohibited by law.
    10. Article 12.b) Fines for driving standard cars on mountain or highland roads, or roads marked “F” on a map or a road sign.
    11. Article 12 c) Fines for driving under the influence of alcohol or illegal substances.
    12. Article 12.f) Fines for smoking in the car.
    13. Article 12 h) Fines for allowing an unregistered driver to drive the car.
    14. Article 26 and 27. Excess amount for Third-Party Liability and CDW or SCDW.
    15. Article 28. Damages not covered by the accident insurances.
    16. Article 29. Broken windshield or underside of the car.
    17. Article 30. Excess amount for SAAP.
    18. Article 31. The retrieval fees.

    Foss Car Rental retains the beforementioned right to charge the credit/debit card for the rental fee and any other fees, charges or fines that may arise from this Rental Agreement for a period of up to six months after the rental ends.

41. Foss Car Rental reserves the right to refuse or deny any rental at its discretion if it is deemed that the booking information provided is incomplete, inaccurate, suspicious, or if there are concerns regarding the likelihood of the vehicle being returned in a satisfactory condition.
42. This Rental Agreement, and any agreements, made based on this agreement and its provisions, fall under the auspices of Icelandic law. 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 Foss Car Rental’s legal venue, the district court of Reykjanes, Iceland
43. Any disputes between the parties to this rental agreement can be submitted to the active Arbitration committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.