TERMS & CONDITIONS
Lava Car Rental
Flugvellir 23 – 230 Reykjanesbaer – Iceland
AGE REQUIREMENT AND DRIVER'S LICENSE
A full driver’s license must have been held for at least 12 months and must be presented at the start of the rental. The renter must be 20 years of age to rent a vehicle with Lava Car Rental.
CREDIT CARD IMPRINT
All rentals are subject to the full rental agreement terms and conditions at the time of rental. A credit card imprint will be taken at the start of all rentals for security reasons, even when a voucher covers the cost of the rental. This credit card imprint may be used to pay all extra charges such as extra insurance, parking fines, damages or any cost due to the rented vehicle as a result of the renter’s use of the vehicle.
All rentals are subject to the full rental agreement terms and conditions at the time of rental. If the renter can not provide a valid credit card for imprint he is required to purchase the Full Protection waiver.
Bookings canceled more than 48 hours prior to the pick-up time are fully refundable (100%).
Bookings canceled less than 48 hours prior to pick-up time are not refundable and the full rental price will be charged.
In case of a no-show, the full rental price will be charged.
PICK-UP & DROP-OFF SERVICE
For our customers arriving or departing at Keflavik International Airport, we offer a free shuttle service to and from our office, both pick-up and drop-off.
We reserve the right to substitute vehicles when the reserved vehicle type is not available, either with a similar vehicle or a higher class.
FUEL TANK & EV BATTERY
The vehicle will normally have a full tank of fuel or 70-100% battery charge in EV vehicles. The vehicle shall be returned full of fuel or in case the fuel tank is not full at pick-up, the vehicle should be returned with the same amount of fuel in it. If the vehicle is returned with less fuel than when it was rented, we will charge the cost for the missing fuel plus an additional ISK 3.000. This does not apply if prepaid fuel has been purchased.
In the case of EV vehicles, the vehicle should be returned with at least 70% battery charge. If not, the renter can be charged up to ISK 15.000 in service fees.
LATE OR EARLY RETURNS
Late returns of more than an hour after the scheduled drop-off time will result in charge of one additional day.
The renter can return the vehicle earlier than the scheduled drop-off time. The renter will get the price difference refunded if he notifies Lava Car Rental at least 48 hours before the scheduled pick-up. If the renter notifies within 48 hours of the scheduled pick-up time or during the rental, the renter is not eligible for any refund.
Taking a vehicle outside of the country is strictly forbidden.
Local value-added tax (VAT) of 24% is included in all prices.
You have the possibility to see the price in different currencies but note that you will be charged and refunded in Icelandic Krona (ISK), the local currency.
The displayed amount in other currencies on our website is converted from the Icelandic Krona amount to your chosen currency based on the most recent currency exchange rate of the Icelandic central bank.
THIRD-PARTY LIABILITY INSURANCE (TPL)
Third-party liability is equivalent to the amount stipulated by Icelandic law at each time. This also applies to the amount of individual driver liability. Third-party coverage and personal accident insurance are automatically included in your rental.
COLLISION DAMAGE WAIVER (CDW)
The CDW covers the body of the vehicle and all collision damages. This insurance also covers the driver and all other passengers of the vehicle for any injuries. This includes emergency treatment, hospital stays, medical exams, and other expenses you may face. The CDW is automatically included in your rental and the liability excess amount is ISK 360.000 ISK.
SUPER COLLISION DAMAGE WAIVER (SCDW)
SCDW covers the bodywork of the vehicle in the same way CDW does, but lowers the liability excess amount to ISK 150.000 for all our vehicles. We offer our customers this to provide them with more security when travelling and a more enjoyable experience.
THEFT PROTECTION (TP)
This protection covers theft of the rental vehicle and the renter liability excess is ISK Zero for all our vehicles.
GRAVEL PROTECTION (GP)
This protection covers damage to the windscreen, headlights, mirrors, hood or any other part of the vehicle when gravel or rocks get thrown onto the vehicle by another vehicle. By purchasing the GP insurance the liability excess amount is reduced to ISK 35.000 for all our vehicles.
SAND AND ASH PROTECTION (SAAP)
No regular car insurance covers damage from sand and ash storms. This protection covers our customers against damage due to sand and ash storms which damages the paint of the vehicle, windows, lights and plastic. These damages can cost between 500.000 to 3.500.000 ISK to fix. By purchasing the SAAP insurance the liability excess amount is reduced to ISK 120.000 for all our vehicles.
TIRE PROTECTION (TIP)
This protection only covers the damage to tires and the wheels, i.e. the repair or cost of a new tire. It does not cover the assistance required. In the case of a flat tire, the renter is responsible for transporting the vehicle to the nearest tire shop to have the tire replaced or fixed. By purchasing the TIP insurance the liability excess amount is reduced to ISK Zero.
FULL PROTECTION PACKAGE
The Full Protection waiver reduces the liability excess amount for any damage covered by our insurance to ISK Zero. This includes CDW/SCDW, TP, GP, SAAP and TIP and is subject to the terms and conditions of the Rental Agreement. Excluded are any damages not covered by insurance as stated in Articles 29 and 32 in the Rental Agreement and terms and conditions. Keep in mind that this is not extra insurance, but an option for our renters to waive their liability excess in case of any damage to the rental vehicle during the rental time.
Maintaining antifreeze, AdBlue, and oil levels is the renter(s) responsibility. Any cost incurred will be reimbursed upon the production of a receipt. Should any malfunction of the vehicle occur, or any sign of overheating, the renter(s) must stop the vehicle immediately, or the renter will be held liable, and loss of bond may occur.
SUBJECT TO TERMS AND CONDITIONS
In the event of a collision or accident, the renter shall immediately notify the appropriate police authorities as well as Lava Car Rental of the incident. The renter may not leave the scene before the police have arrived.
Should the renter fail to comply with any conditions of this contract, all losses and damages suffered by the owner arising out of such failure might be borne by the renter. The renter agrees to rent the above vehicle and elects to pay all amounts payable under this agreement by the method of payment of which details are given in this document.
The renter accepts responsibility for all traffic violations. An ISK 4.500 handling fee will apply for any unpaid fines or a delayed process of infringement.
There is a handling fee of ISK 4.500 for all fines or charges that result from the renter’s use of the vehicle and the renter does not pay himself. Lava Car Rental will charge the renter for fines and charges plus the previously mentioned handling fee.
If the vehicle is returned extra dirty there is a cleaning fee of ISK 15.000. This is in the case of an extremely dirty vehicle, especially on the inside. Not from regular use of the vehicle.
Smoking is strictly forbidden in the vehicle. If someone smokes inside the vehicle, the renter will be liable for a cleaning fee and a fine of ISK 35.000.
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 400 per km or a minimum of ISK 45.000. The ISK 400 per km charge is calculated from Lava Car Rental’s Office.
Updated on July 10th, 2023
We invite you to familiarise yourself with our Terms & Conditions before you pick up the car to speed up the process and be aware of your obligations as a renter. If you have any questions, please contact us at firstname.lastname@example.org
OBLIGATIONS OF THE RENTER
- The renter agrees to the provisions of this contract and has received a copy of the rental agreement and the terms and conditions.
- The renter has received the mentioned vehicle and its accessories in a proper and safe condition.
- The renter/driver shall be at least 20 years old and shall have held a valid driver’s licence for at least one year before renting the vehicle and must present the licence at the start of the rental. The renter/driver shall abide by Icelandic law and regulations when driving.
- The renter shall be responsible for the rented vehicle from the time it leaves the Lava Car Rental office until Lava Car Rental signs for the vehicle as returned.
- The renter shall return the vehicle as stated below:
- With all accessories (including tyres, tools, documents and other items) in the same conditions 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 the cost price to the credit card that the renter provided at the beginning of the rental.
- At the predetermined time and date as stated on the rental agreement or sooner if Lava Car Rental demands it.
- To a Lava Car Rental premises, unless otherwise agreed in writing. Failing to return the vehicle directly to Lava Car Rental‘s office is subject to a drop-off charge as per Lava Car Rental’s current price list. The renter agrees that the drop-off charge will be charged from the credit card that the renter provided at the beginning of the rental.
- With the fuel tank at the same level as stated on the rental agreement. The renter agrees that missing fuel will be charged to the credit card that the renter provided at the beginning of the rental should the renter fail to return the vehicle with the fuel tank on the same level. The service charge for refuelling is determined by Lava Car Rental’s current price list.
- 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 cleaning fee according to Lava Car Rental’s current price list. The renter agrees that the cleaning fee will be charged from the credit card that the renter provided at the beginning of the rental.
- All vehicles are non-smoking.
- An extension of the rental agreement is dependent on the approval of Lava Car Rental. If the renter returns the vehicle one hour or more after the expiry of the rental agreement, Lava Car Rental is permitted to charge an extra day (24 hours) according to this agreement in addition to a 10.000 ISK fine for a late return. For each day thereafter, Lava Car Rental may collect fees according to its price list. The renter agrees that any such charge may be charged from the credit card that the renter provided at the beginning of the rental. Failing to return the vehicle at the agreed return time according to this rental agreement or informing Lava Car Rental of the renter’s intention to extend the rental, Lava Car Rental or the police are also permitted to repossess the vehicle without further notice and at the expense of the renter.
- The vehicle shall be handled and driven with due care. Only those registered as drivers in this agreement, who also fulfil the requirements in section 3, are permitted to drive the vehicle. If the vehicle is driven by a person who is not registered in this rental agreement, all insurance becomes null and void, in which instance the renter is fully liable for the vehicle, for the damage it may sustain, the damage it may cause others, items or vehicles, and obligated to pay such damage in full. The cost of damages occurring under the aforementioned circumstances may be charged from the credit card that the renter provided at the beginning of the rental.
- 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 damage to the vehicle and/or injury to passengers on account of:
- 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.
- Driving in or across rivers or any kind of water course.
- Intentional acts, gross negligence or total carelessness of the driver.
- Operating the vehicle under the influence of controlled or illegal substances.
- Use of the vehicle that is in breach of Icelandic law and/or the provisions of this rental agreement.
- Driving vehicles that are not four-wheel drive (4×4) on roads that are marked “F“ on a map or a road sign, including Kjölur (Road 35), Kaldidalur (Road 550), Jökulhálsleið (Road 570) and Sprengisandur (Road 26). Violation of this article is subject to a fine of ISK 300.000 by Lava Car Rental. The above-mentioned provision does not affect the obligations of the renter to pay Lava Car Rental compensation for the loss or damage of the vehicle. Only 4×4 vehicles that are approved by Lava Car Rental may be driven on the above roads.
- Driving on closed roads as published by the Icelandic Road Administration (www.road.is).
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 card provided by the renter at the beginning of the rental.
- In the instance of a collision or accident, the renter shall immediately notify the police as well as Lava Car Rental of the incident. The renter may not leave the scene before the police have arrived or an accident report has been completed. The renter is obligated to report any damage to the vehicle to Lava Car Rental, regardless of any insurance or waivers assigned to the rental.
- The number of kilometres (km) that the vehicle has travelled while this agreement is in effect is determined by the reading of the appropriate meter supplied by the manufacturer of the vehicle. The renter shall notify Lava Car Rental, without delay, if the odometer is out of order or stops functioning during the rental period.
- The renter is responsible for any fines, fees or charges that occur during the rental period. This includes but is not limited to: traffic violations, speeding and speed camera fines, and parking and toll charges. A handling fee of ISK 4.500 is charged by Lava Car Rental for any official inquiry the company must respond to or any fine or charges Lava Car Rental must pay due to the renter’s/driver’s use of the rented vehicle. The renter agrees that this fee and the fine/charge may be charged from the credit card provided by the renter at the beginning of the rental.
- The renter/driver may not:
- Drive the vehicle where prohibited by law, i.e., on 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 Lava Car Rental in addition to the fine charged by the police. The renter agrees that these fines may be charged from the credit card provided by the renter at the beginning of the rental.
- Drive the vehicle on the 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, intended and accepted for such use by Lava Car Rental. Failing to comply with this article is subject to a fine of a minimum of ISK 80.000, plus ISK 15 for each km driven on a restricted road. The renter agrees that this fine may be charged from the credit card provided by the renter at the beginning of the rental.
- Operate the vehicle under the influence of alcohol, controlled or illegal substances. Violation of this article is subject to a fine of ISK 90.000 by Lava Car Rental in addition to the fine charged by the police. The above-mentioned provisions on fines do not affect the obligations of the renter to pay Lava Car Rental compensation for loss or damage to the rented vehicle.
- Drive in or across water or rivers of any kind, without assuming all responsibility for the vehicle.
- Drive in banks of snow, or ice, on glaciers, or on frozen lakes.
- Smoke in the vehicle. Evidence of smoking in the vehicle, such as stubs, ashes or odour, will result in a clean-up fee of a minimum of ISK 35.000. The renter agrees that this fee may be charged from the credit card provided by the renter at the beginning of the rental.
- Take the vehicle anywhere outside of Iceland without written and signed permission from Lava Car Rental.
- Allow an unregistered driver to drive the vehicle. Violation of this article is subject to a fine of ISK 35.000 by Lava Car Rental.
- Lava Car Rental is not responsible for the renter’s property that he/she or any other party leaves in or transports with the vehicle.
- The renter agrees to pay Lava Car Rental upon request:
- A deposit equivalent to the expected cost of hiring the vehicle.
- Any and all expenses accruing to Lava Car Rental in transporting the vehicle back to its premises, in the event that it has been left unattended and without supervision, without regard to the vehicle- weather condition.
- Expenses that may arise from the renter’s use of the vehicle.
- The renter is not authorised 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 Lava Car Rental.
- The renter is not permitted to use the vehicle for transportation of passengers for payment, lend it to others, or sublet it.
OBLIGATIONS OF LAVA CAR RENTAL
- Lava Car Rental is responsible for doing its utmost to guarantee the delivery of the vehicle at the predetermined time and in compliance with all requirements and to supply a clean vehicle with a full tank of fuel. If Lava Car Rental cannot for some reason supply the vehicle ordered at the correct time, a vehicle of a similar or higher class will be offered as a replacement. If the vehicle is not presented to the renter within 3 hours of the agreed time, the rental charges for the day will be dropped. If Lava Car Rental fails to supply a full tank of fuel, then the renter may return the vehicle with the same fuel level as supplied and stated on the rental inspection form.
- Lava Car Rental guarantees that the vehicle meets the set demands and that all official registration standards are met.
- If the vehicle malfunctions owing to normal wear and tear, or for other reasons for which the renter cannot be held responsible, Lava Car Rental shall deliver the renter with a comparable vehicle as quickly as possible at a location decided by Lava Car Rental or arrange to have repairs done without delay by a Lava Car Rental service partner. In the case of such malfunction, Lava 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 over 24 hours.
- Lava Car Rental must inform the renter of the contents of this rental agreement, particularly of the obligations that the renter undertakes by signing it.
- Lava Car Rental shall, to the extent possible, inform a foreign renter of Icelandic traffic regulations, traffic signs, and regulations on the prohibition of off-road driving. Furthermore, Lava Car Rental shall especially point out the risks posed by animals on the roads, gravel roads and icy roads.
- If Lava 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 this rental agreement.
- Lava Car Rental guarantees to maintain valid liability insurance for its operations.
- Lava Car Rental cannot be held responsible for damage or disappearance of items stored or transported in or on the vehicle by the renter or any other party.
- Lava Car Rental cannot be held responsible for items left in the rented vehicle after drop-off. Upon request and if the item is found, Lava Car Rental can ship the item back to its owner. A handling fee of ISK 4.500 minimum is charged by Lava Car Rental. Prices vary and depend on the size of the object and the distance of the shipment. The renter agrees that this fee may be charged from the credit card provided by the renter at the beginning of the rental.
INSURANCE AND OWN RISK
- The rental fee includes mandatory vehicle insurance, including liability insurance and accident insurance for the driver and the owner.
- Third-party liability insurance will consist of the amount stipulated by Icelandic law at any given time. If for some reason, the renter causes damage to a third-party vehicle without causing damage to the rented vehicle, the third-party liability is a total of ISK 35.000.
- In case of damage to the vehicle, the renter is fully responsible. The renter can purchase 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 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 agreement. The renter agrees that the amount of liability excess stipulated on the front of this agreement may be charged from the credit card provided at the beginning of the rental.
- This accident insurance does not cover:
- Intentional damage or damage due to gross negligence on the part of the driver.
- Damage resulting from the driver being under the influence of controlled or illegal substances, or in any other way incapable of driving the vehicle in a safe manner.
- Damage caused by a non-registered driver.
- Damage caused by a race or test driving.
- Damage caused by war, revolution, civil unrest, or riots.
- Damage done by animals.
- Holes burned into seats, carpets, or mats.
- Damages affecting only wheels, tyres, suspension, batteries, glass (other than windows), radios, or loss by theft of parts of the vehicle and damage resulting from this.
- Damage caused by driving on rough roads, e.g., to the transmission, the drive or driveshaft, and other parts in or attached to the chassis. Damage to the chassis, or any part of the vehicle, resulting from the vehicle scraping bottom on rough roads. The same applies to damage occurring when stones are thrown up, striking the underside of the vehicle when being driven. The underside of the vehicle is not insured.
- Damage resulting from driving in places where driving is banned, such as paths, tracks, banks of snow, ice, unbridged rivers or streams, beaches, places only accessible at low tide, or other trackless areas. The vehicle is not insured when crossing rivers or driving in water of any kind. River crossing must be done with extreme care.
- Damage to the vehicle caused by driving on mountain roads and 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 extend to 4wd and all-wheel drive vehicles accepted by Lava Car Rental for use on mountain roads – approved vehicles are insured on all marked roads and tracks).
- Water damage to the vehicle, its electrical system, accessories or engine.
- Damage caused by sand, gravel, ash, pumice, or another kind of earth material being blown onto the vehicle, unless the renter purchases SAAP insurance.
- Damage caused by wind blowing up the door while opening it.
- Damage caused to the top of the vehicle from standing, sitting, mounting or climbing on the vehicle or from any other action that does not fall under regular use of the vehicle.
- No compensation will be paid for damage caused by sea spray/seawater if the vehicle is transported by sea.
- Reference is made to the general conditions for accident insurance (Icelandic: kaskótrygging) as set by TM insurance company at www.tm.is
- 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 400 per km or a minimum of ISK 45.000. The ISK 400 per km charge is calculated from Lava Car Rental’s office.
The renter agrees that any damage not covered by the insurance of the vehicle may be charged from the credit card provided at the beginning of the rental.
- The renter may purchase special insurance for damages caused by gravel (GP) and to the tires (TIP), from Lava Car Rental. These insurances lower the liability excess of the renter in each case of damage caused by gravel, to ISK 35.000 and a flat tire to ISK Zero.
- In addition, the renter can purchase Sand and Ash Protection (SAAP), which covers damage to the vehicle's paint, windows, lights, plastic, chrome and wheels, which is caused by sand, gravel, ash, pumice or other earth material being blown onto the vehicle. The liability excess in each case of damage is ISK 120.000.
- No insurance covers damage to the underside of the vehicle or damage caused by water when driving over rivers, pools of water or lakes. The same applies if the renter puts fuel, water, oil or other solvents in the wrong tank on the vehicle. The liability excess amount for CDW or SCDW does not extend to any of the above damages. The renter bears all risk and all costs of such damage.
- The renter confirms with his or her signature on this rental agreement, the terms and conditions and the inspection form that he or she has received the vehicle and its accessories in good condition.
- This rental agreement with its terms and conditions shall remain in the vehicle during the rental period.
- Any changes to the rental are subject to availability and must be done in writing.
- Lava Car Rental is authorised 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 costs arising from such measures.
- Smoking is prohibited in all Lava Car Rental vehicles. Evidence of smoking in the vehicle will result in a cleaning fee of ISK 35.000.
- Additions and amendments to the conditions and provisions of this rental agreement shall be made in writing and confirmed in writing by a Lava Car Rental representative.
- By providing his/her credit card details to Lava Car Rental, the renter agrees with his/her signature on this rental agreement that Lava Car Rental is authorised 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:
- Item 5.a) Missing or damaged accessories.
- Item 5.c) Drop-off charges.
- Item 5.d) Fuel charges.
- Item 5.e) Clean-up charges.
- Item 6. Late return and related costs.
- Item 7. Damages to the vehicle by others than the renter/driver.
- Item 8. Damages to the vehicle by the renter/driver.
- Item 11 and 25. Fines and handling fees.
- Item 12.a). Fines for driving where prohibited by law.
- Item 12.b) Fines for driving 2WD vehicles on mountain roads.
- Item 12 c) Fines for driving under influence of alcohol or illegal substances.
- Item 12.f) Fines for smoking in the vehicle.
- Item 12 h) Fines for allowing an unregistered driver to drive the vehicle.
- Item 27. Liability excess for CDW or SCDW.
- Item 28. Damages not covered by the vehicle’s insurance.
- Item 29. Broken windshield
Lava Car Rental retains this right for a period of up to six months after the rental ends.
- 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 damage based on liability outside this agreement. If legal disputes arise concerning this lease agreement, they will be heard before Lava Car Rental’s legal venue, the district court of Reykjanes, Iceland.
- 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.