Terms & Conditions

1. Agreement & Acceptance

By signing this Rental Agreement, the renter confirms acceptance of these terms and conditions. A copy will always be available digitally or upon request.


2. Vehicle Condition & Availability

The renter confirms that the vehicle and its accessories are received in safe and proper condition.

While we always aim to deliver the exact reserved vehicle, Esja Car Rental reserves the right to provide a similar or upgraded vehicle if necessary — at no extra cost.


3. Driver Requirements

  • Minimum age: 20 years
  • Minimum age for larger vehicles/SUVs: 23 years
  • A valid driver’s license held for at least 12 months is required

All drivers must comply with Icelandic laws and safe driving practices.


4. Responsibility for the Vehicle

The renter is fully responsible for the vehicle from the moment it is collected until it has been returned and checked in by Esja Car Rental.


5. Returning the Vehicle

To keep things simple and transparent, we ask that the vehicle is returned:

a. Condition

With all accessories included and in the same condition as received (allowing for normal use).

b. Time

At the agreed return time. Late returns may incur additional charges.

c. Location

At the agreed return location, unless otherwise arranged in writing.

d. Fuel / Battery

Returned at the same level as received unless prepaid fuel is selected.
Missing fuel or charge will be billed according to our price list.

e. Cleanliness

Returned in reasonable condition. Excessive dirt (inside or outside) may result in a cleaning fee.

f. Smoking Policy

All vehicles are strictly non-smoking.


6. Rental Extensions & Late Returns

Extensions are always possible subject to availability — just contact us.

Late returns (1+ hour):

  • May be charged as an additional rental day
  • A late return fee may apply

If no contact is made, Esja Car Rental reserves the right to recover the vehicle if necessary.


7. Authorized Drivers

Only drivers registered in the agreement may operate the vehicle.

If an unregistered driver uses the vehicle:

  • All insurance becomes void
  • The renter becomes fully liable for all damages and costs

8. Driving Conditions & Responsibility

Iceland offers incredible landscapes — but also unique driving risks.

The renter is fully responsible for damages caused by:

  • Off-road driving (strictly illegal in Iceland)
  • River crossings or driving in water
  • Driving under the influence
  • Negligent or reckless driving
  • Driving on closed roads (see: www.road.is)
  • Driving non-4×4 vehicles on F-roads

👉 Violations may result in fines and full liability for damages.


9. Accidents & Damage Reporting

In case of any accident or damage:

  • Notify Esja Car Rental immediately
  • Complete an accident report
  • Do not leave the scene before documentation

All damages must be reported — regardless of insurance coverage.


10. Mileage & Vehicle Monitoring

Mileage is recorded via the vehicle’s odometer.

If malfunction occurs, the renter must notify Esja Car Rental immediately.


11. Fines, Tolls & Charges

The renter is responsible for all charges related to the vehicle, including:

  • Parking fees
  • Traffic violations
  • Speed cameras
  • Road tolls

A small handling fee may apply for processing these charges.


12. Prohibited Use

The vehicle may not be used for:

  • Off-road driving
  • Driving on restricted/highland roads without a suitable vehicle
  • Driving under the influence
  • River crossings
  • Racing or testing
  • Smoking inside the vehicle
  • Leaving Iceland without permission
  • Subleasing or commercial passenger transport

Violations may result in fines and full liability.


Insurance & Protection

13. Standard Insurance

All rentals include:

  • Third-party liability insurance
  • Accident insurance (driver & owner)

14. Damage Protection Options

We offer flexible protection packages for peace of mind:

CDW (Collision Damage Waiver)

Limits your financial liability in case of damage.

SCDW (Super CDW)

Further reduces your excess.

Gravel Protection (GP)

Covers damage from gravel to paint and windows.

Theft Protection (TP)

Covers theft of the vehicle.

Sand & Ash Protection (SAAP)

Protects against Iceland’s harsh natural elements.


⭐ Esja Summit – Premium Protection

Our top-tier protection package.

With Esja Summit, your liability is reduced to zero in most cases, including:

  • Body damage
  • Gravel damage
  • Sand & ash damage
  • Theft


👉 Exclusions still apply for:

  • Negligence
  • Off-road driving
  • River crossings
  • Driving under the influence

15. What Insurance Does NOT Cover

Even with protection, the following are not covered:

  • Negligence or reckless driving
  • Driving under the influence
  • Unauthorized drivers
  • Off-road or illegal driving
  • Water damage (rivers, floods)
  • Wrong fuel usage
  • Loosing car keys
  • Interior damage or burns
  • Damage caused by wind opening doors
  • Undercarriage damage

16. Roadside Assistance

If assistance is required due to renter-related issues:

  • A service fee may apply
  • Retrieval costs are distance-based

General Terms

17. Payments & Deposits

A valid credit card is required for booking and deposit.

We may charge for:

  • Rental costs
  • Damages
  • Fines
  • Additional services

Charges may occur up to 6 months after rental if needed.


18. Cancellations

  • Free cancellation: up to 24 hours before pickup
  • Late cancellations / no-show: full charge
  • Non-refundable bookings: no refund

19. Personal Belongings

Esja Car Rental is not responsible for items left in the vehicle.
Shipping can be arranged for a handling fee.


20. Vehicle Tracking

For safety and security, our vehicles may use GPS tracking systems to:

  • Prevent theft
  • Support insurance claims
  • Ensure safe usage

21. Legal Jurisdiction

This agreement is governed by Icelandic law.

Any disputes will be handled in Iceland, with the option of arbitration through:

  • Icelandic Consumers Association
  • Icelandic Travel Industry Association

Only individuals listed in the rental agreement and possessing a valid driver’s license are permitted to operate the vehicle.

By signing the rental contract or accepting possession of a vehicle, the renter confirms: – Understanding and acceptance of these Terms & Conditions. – Responsibility for the vehicle until formally returned and inspected.

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Drop-off Date
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