Obligations of the Renter

  1. The renter has received a copy of the rental agreement, has studied it, and has given unqualified acceptance of all its provisions with sound mind.
  2. To qualify to rent the renter must present at the time of rental a current driver’s license and valid major credit card in the renter's own name with available credit.
  3. The driver’s age shall be 20 years or above and shall have held a VALID driver‘s licence for minimum ONE YEAR prior to renting a vehicle. The renter shall conform to Icelandic Rules and Regulations when driving.
  4. The renter shall hand back the vehicle as stated below:
    1. Complete with all attachments such as tires, documents, tools and other components and items that were part of the vehicle upon rental, in the exact condition as they were initially, not counting normal wear and tear from the use. And if there is anything missing, the renter gives his/her full consent of paying the price of all individual items that are absent at the time of handing back the vehicle. It will be charged from the renter’s same credit card which was used at the time of paying the rent. The same would hold true if the extra parts that came fitted, placed or installed with the car are found missing at the time of return or are in their unsatisfactory state, i.e., the amount of these items will be charged from the same credit card that was used in the beginning of the rental process.
    2. At the predetermined time as mentioned on the agreement’s front page or sooner at City Car Rental’s demand.
    3. At the office of City Car Rental from where the vehicle was rented out or more clearly, picked up, unless otherwise accepted. However, if there is any non-compliance with the drop-off of the vehicle such as the vehicle is not returned at City Car Rental’s location of the rent, then City Car Rental is allowed to levy extra charges on the renter for pick-up of the car depending upon its price-rates.
    4. It necessitates for the driver to return the vehicle with the same quantity petrol in the tank. If it is not returned in the same said way, then City Car Rental is allowed to charge the driver for the difference.
  5. If it happens that the renter fails to return the vehicle at the right time as per this rental agreement or wants to negotiate for extended rental with City Car Rental, City Car Rental or police has the authority to take back the possession of the vehicle without any more notice, that too at the expense of the renter. It should be noted that extended rental is subject to City Car Rental’s consent. If the renter hands back the vehicle one or more hours after the rental period’s cessation, City Car Rental is allowed to levy charges as much as a one-day rate according to the company’s rate-list.
  6. The renter shall drive the vehicle carefully and cautiously. Plus, the vehicles should be driven by only persons who are either registered as drivers with City Car Rental or who meet the clause of aforementioned item 2. If the vehicle is, however, not driven by any authorised person as per this rental agreement, all insurance turn null and void, making the renter fully legally responsible for the vehicle, for any damage it may sustain or any harm it may cause to others, items or vehicles and binds to pay charges for such damages in full or face any legal charge arising from such act.
  7. The renter shall have objective liability concerning the vehicle towards City Car Rental. Say, due to the damage bore by City Car Rental for stolen vehicle or damages sustained by the vehicle which the City Car Rental’s insurance company does not recognise or agree to compensate.
  8. The renter shall have objective liability concerning the vehicle towards City Car Rental for damage occurred due to the use of the vehicle and which City Car Rental’s insurance company does not recognise or agree to compensate.
  9. he renter is obligated to change flat tires himself and is liable for paying for the damaged wheels because of flat tire driving as per the rate-list.
  10. The renter is fully responsible for the damage caused by the use of the vehicle to the vehicle and/or passengers and will not be covered by City Car Rental’s insurance company if any of these factors can be traced:
    1. Off-road driving.
    2. Intentional actions or sheer negligence.
    3. Driving in rivers or any other sort of watercourse.
    4. Driver is intoxicated.
    5. Use of the vehicle that falls under the breach of Icelandic Law and/or any rental agreement’s provision.
  11. The renter is not authorised to do:
    1. Off-road driving, such as in tracks and paths, on beaches, in regions only available during low tide or in some other trackless regions.
    2. Driving rental vehicles on tracks or roads with no road number is prohibited. Passenger vehicles and 2wd vehicles are prohibited from driving on roads that bear an F mark on public maps plus Kjölur (road 35) and Kaldidalur (road 550). F-roads are only accessible for driving when on 4x4 (four-wheel drive) jeeps that are regarded as appropriate for being driven on those roads by the renter. And in situation of breach of this clause, City Car Rental is authorised to charge the renter fines equivalent to the amount of own-risks, cf, as per the rate-list of City Car Rental at any specified time. The said provisions bear no effect on the renter’s liability pertaining to damage.
    3. Driving while under the influence of any intoxicants.
    4. Driving in or across rivers or any other sort of watercourses. It would make the renter completely liable, cf, also item i, Clause 30.
    5. Driving in banks of snow or ice.
  12. In the situation of collision or accident, the renter is obligated to notify the police along with City Car Rental immediately. The renter is not supposed to leave the scene of accident or collision until police and City Car Rental have been informed as well as until the police have gotten there or damaged report has been made. In case of the occurrence of damage, the renter is supposed to fill out the damage report. If, however, the damage has not been reported within 12 hours from its happening, the renter shall be made subject to full responsibility for the damage and in such case, shall recompense for it in full regardless of the Collision Damage Waiver (CDW) that is made part of the insurance availed of by the renter in the beginning of the rent.
  13. The reading of the number of kilometers (km) for which the vehicle is driven during the period of rent is taken from the odometer of the vehicle. In case the odometer is, will or shows the sign of becoming inactive or dysfunctional while the rental vehicle is still in the custody of the renter, the renter shall inform City Car Rental with no further ado and shall follow all the instructions of City Car Rental concerning the same, inclusive of getting the vehicle repaired. In the event of odometer rendered dysfunctional, City Car Rental shall have the authority to assess the number of kilometers driven.
  14. The renter consents to pay City Car Rental a required sum in the form of deposit in the rent’s estimated amount and/or other extra charges the renter shall be subjected to concerning the rent.
  15. Without the prior consent of City Car Rental, the renter shall not have repairs or changes done to the rental vehicle or its attachments or to showcase them as guarantees.
  16. For traffic violations, only the renter is subject to all parking tickets and fines. In case it turns out that City Car Rental is made to pay fines for the renter and/or notify the authorities about the renter due to the traffic violations, City Car Rental is authorised to charge from the renter, charged against the same credit card that the renter used in the beginning of the rent, as per the rate list of City Car Rental.
  17. The renter is not allowed to use the rental vehicle for transferring passengers against payment, further lend it or sub-lease it.
  18. The renter is responsible for making the payments of all collection costs that fall on City Car Rental in case City Car Rental launches collection measures due to this rental agreement.
  19. he renter is liable for all expenses arising out from transporting the vehicle to the locations of City Car Rental, as determined by City Car Rental, in the case of transportation due to an accident or damage sustained by the rental vehicle or for other reasons. In such an event, the Collision Damage Waiver (CDW) has no effect.

Obligations of  City Car Rental

  1. City Car Rental agrees to hand over the rental vehicle that meets all requirements and standards best for it.
  2. In the event of vehicle malfunction due to normal wear and tear or for other reasons which are beyond the liability of the renter, City Car Rental is obligated to make available another replacement vehicle as early as it could be, or see to it that the dysfunctional vehicle is repaired as soon as possible at the location determined by City Car Rental. Such event has no effect on the rental payment or other which the renter is asked to pay as per this rental agreement. It is to further take note of that City Car Rental would not pay any compensation in such instance as stated above, neither due to accommodation or other.
  3. City Car Rental shall apprise the renter to the contents of this rental agreement, specifically the part of obligations of the renter that the renter has to comply with upon signing the agreement.
  4. City Car Rental shall enlighten foreign renters to the best extent possible as to what Icelandic traffic rules and regulations, the traffic signs and other rules forbidding off-road driving along with the danger caused by the animals’ presence on the roads are.
  5. In instance when City Car Rental wishes to restrict the use of the rental vehicle taking into consideration its structure and/or prevailing conditions of the roads, in other ways that are identified in this rental agreement, this shall be agreed upon in writing at the time of the signing of the rental agreement.
  6. City Car Rental pledges to always have a bona fide liability insurance for its operations.
  7. City Car Rental shall not be responsible for the missing of items or damage to them, which were kept or transported in or on the rental vehicle by either the renter or any other party associated with the renter.

Insurance and own-risk fee (Collision Damage Waiver)

  1. The rental fee is made of the compulsory vehicle insurance, which are, liability insurance and accident insurance for the driver as well as the owner.
  2. As far as third-party liability insurance and the accident insurance for the driver are concerned, they are of the worth stipulated by Icelandic Law at any given time. The own-risk (CDW) of the renter due to damage to a vehicle may add up to the full value of the vehicle, cf, a further condition of own-risk on the front page of this contract.
  3. The renter, in a bid to reduce his/her liability, shall pay an own-risk fee. The amount of own-risk fee is determined as per the rate-list of City Car Rental. In spite of the payment of the own-risk fee, the renter will always be liable to pay a minimum amount in instance of damage sustained by the rental vehicle while the vehicle is under the custody of the renter. This amount is calculated using the rate-list of City Car Rental. In addition, each own-risk is applicable to only one incident. In event of more damage that clearly did not happen concurrently, each own-risk CDW is applicable to only one incident.
  4. The amount of own-risk fees (CDW) may vary, based on how high the quantum of damage they are applicable to. A reference shall be made to the rate-list of City Car Rental which is made part of this rental agreement in case an own-risk fee (CDW) is paid. Additionally, the renter’s own-risk would not be reduced even at the payment of an own-risk fee (CDW) in the event of the damage of the vehicle in the following cases:
    1. Intentional damage or damage occurred due to a mere negligence by the driver.
    2. Damage as a resultant of the driver being under the influence of any intoxicant or is in other respects unable of taking the control of the vehicle and steering it in a safe manner.
    3. Damage occurred as a result of racing, test driving or rash driving.
    4. Damage occurred as a result of warfare, riots, revolution and/or civil unrest.
    5. Damage done by animals.
    6. Holes burned into the carpets, mats or seats.
    7. Damage having an effect on only wheels, suspension, tires, batteries, glass, radio equipment plus the damage because of the theft of the vehicle’s individual parts and damage occurred thereof.
    8. Damage occurred as a result of driving on rough terrains to the parts like the drive shaft ATH, other parts in or on the vehicle’s chassis as well as damage to the vehicle’s chassis caused by bumping of the vehicle on uneven roads, such as, road shoulders occurred as a result of motor graders, rocks laid in gravel roads or by roads’ edges. The same is applicable to the damage caused by loose rocks drubbing the vehicle’s bottom when being driven.
    9. Damage caused by driving the vehicle in the areas where driving is forbidden, such as, driving on tracks, paths, banks of snow or ice or in streams, unbridged rivers or any other watercourse like on beaches, places like trackless areas or the ones made accessible during low tide.
    10. Damage caused by driving on roads with the F-mark in public maps and on Kaldidalur and Kjölur roads.
    11. Damage caused by gravel, sand, pumice, ash or other earth materials being blown against the vehicle.
    12. If it is so that the vehicle has to be shipped by sea, the own-risk fee’s payment would not be applicable to the damage caused by seawater.
    13. Damage bore by City Car Rental due to the theft of the vehicle.
    14. Damage to the vehicle caused by water.
  5. The renter has a chance of reducing his/her liability for City Car Rental’s damage caused by the theft of the vehicle if he/she becomes subject to the payment of the TP fee – a special fee. In spite of the payment of the TP fee, the renter would not be spared of the payment of a minimum amount in instance of the theft of the vehicle while the vehicle was in the care of the renter. The amount shall be calculated with a reference to the rate-list of City Car Rental.
  6. There is no insurance coverage for the damage to the chassis resulting from driving in rivers or lakes. Such damage is not covered by the own-risk fees (CDW and SCDW). The renter is fully responsible for such damage; for more information, see above points under insurance.
  7. CDW’s self-risk is 360.000 ISK while SCDW’s own-risk is reduced to 100.000 ISK.

General Provisions

  1. All requests for cancellation can be entertained up till 48 hours prior to the scheduled pick-up for the rental vehicle. A full refund will be issued only if the renter cancels with more than 48 hours of notice. While the renter must note that there would be no refund made for the cancellations within 48 hours.
  2. City Car Rental is allowed to take back the possession of the vehicle at its own discretion and without any notice in case if the vehicle has been found illegally parked or has been utilized in a manner that does not comply with this rental agreement or law and regulation or if the vehicle seems to be abandoned.
  3. In cases when City Car Rental exercises its rights as per the points mentioned above, it shall have no effect on the payment of the rental fee or other which the renter is subject to pay as per the rental agreement. However, in event when the vehicle in question has been re-rented to another party within the said rental period, the amount of rental fee corresponding to the rental period till the point another party appears in the scene shall be deducted. City Car Rental has the authority to decide solely at any given time if the renter should be provided with another vehicle in place of the rented one in events of the rental agreement’s breach. If the renter gets another vehicle of a lesser expensive and different vehicle type, the renter shall not receive any recompense of the balance. If in case City Car Rental decides to provide the renter with a more expensive vehicle instead of the rented vehicle as it was the only option, City Car Rental is authorised to charge against the credit card of the renter presented in the beginning of the rent with a reference to its rate-list.
  4. City Car Rental is permitted to charge against the credit card presented by the renter the rental fee and other which the renter is supposed to pay as per this rental agreement, counting payments due to damage to the vehicle while the possession of the vehicle was with the renter and also due to the loss of rental days in events of damage taking note of the utilisation ratio of City Car Rental’s vehicles and it is City Car Rental alone that shall decide when it has to be done and whether done on one transaction or not. It is deemed to be the case that the renter’s signature to this rental agreement will be considered equivalent to the renter’s signature to credit-card withdrawals as City Car Rental is authorised to charge the payments against the credit card provided by the renter in the beginning of the rent and which the renter should rightfully receive taking into account the provisions of this rental agreement.
  5. City Car Rental shall have the authority to charge the credit card provided by the renter for extra services, like giving a restart to the vehicle because of the loss of battery power or in the event of not able to turn off the lights. If the renter happened to crash and damage his/her rental car, then in order to get his/her rental car replaced, he/she should be prepared to give a cost of 5.000 ISK within Reykjavik and Keflavik areas. And outside Reykjavik region, the charges will be equal to 300 Kronur per kilometer (km) back and port.
  6. With his/her signature on this rental agreement and the damage report stating that he/she has got the vehicle and attachments in the best functional condition, the renter agrees with each provision and fully binds himself/herself to this contract and the report.
  7. This rental agreement has to be kept in the vehicle till the time the possession of the vehicle is with the renter.
  8. In cases of amendments or annexes to be made to this rental agreement, these shall be effectual if being made in writing and agreed with signatures of both the parties to the agreement.
  9. This rental agreement or agreements agreed in the full knowledge of aforementioned points and claims for damages which may be made later, fall under the aegis to the claims for damages in respect of liability outside agreements. And it is only the legal venue of City Car Rental where a case emerging over this agreement shall be filed.
  10. The Arbitration Committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association are the authorities before whom this agreement may be brought in matters of difference of opinions between the parties to this agreement.

Returning Vehicle at Keflavik Airport

  1. Summer Time

    The renter can rent and return the car at City Car Rental’s Keflavik office. From there, City Car Rental will drive the renter to the Keflavik area or Keflavik airport (if he/she has booked for a pick-up and drop-off). If the renter wants to drop the car at any location but City Car Rental’s office, City Car Rental is authorised to charge 5.000 ISK extra.

    Winter Time

    All the renter has to do is reach P3 (long-term parking) by following all signs. The P3 level is split into various sections such as A1, B1, C1 and so on. The renter is required to leave the rental car in C3, UNLOCKED. From there, City Car Rental will pick it up. And please note, while the renter will make an entry to the C3 section, he/she will receive a ticket. He/she has to hand over this ticket (with GPS if he/she has) along with the keys of the car to the glove department. That’s it! And the renter shall not forget to take all his/her belongings.