Terms & Conditions

Star Car Rental

Car types:

We reserve the right to substitute vehicles when the reserved car types is not available.

Age and driving license:

The lessee/driver of the rental car has to be at least 18 years old. For large 4x4 like Land Cruiser and Discovery has to be at least 20 years old.

A valid debit/credit card and drivers license for each driver. Debit card rentals needs an security deposit. Additional driver is included at Star Car Rental.

Method of payment:

Valid credit card is required. A credit card imprint will be taken at the start of all rentals for security reasons. This credit card imprint may be used to pay all extra charges, parking tickets, damages, tank refill or any cost due to the use of the rented vehicle.

All online payments are processed on a secure payment page from Borgun.


VAT is inlcuded in all prices shown on our website.

Obligations of the lessee:

The lessee agrees to the provisions of the lease and has received a copy of it.

The lessee will return the vehicle:

  1. With all attachments, including tires, tools, documents, maps and other items that were in or on the vehicle at the start of rental, in the same condition as upon reception, except for normal wear and tear from use. If something is missing the lessee agrees that the cost price of individual items that are absent when the vehicle is returned will be charged to his or her credit card. The same applies if extra parts that came with the vehicle are missing upon the vehicles return or if returned in an unsatisfactory condition, i.e. these items will be charged to the lessees credit card.
  2. On the date and time specified by the lease, unless otherwise agreed later.

If the lessee violates the terms of this contract or does not return the automobile at the time agreed according to lease, or does not declare his intention to extend the lease, the lessor or the police are authorized to repossess the vehicle without further notice and at the lessees cost. Extending the lease is dependent on the consent of the lessor. If the lessee returns the vehicle 1 hour or later after the lease has expired, the lessor is authorized to demand up to 24-hours rental under the terms of the lease. For every day that begins thereafter, lessor may collect all charges as per the lessors price list.

Driving rental cars on roads or tracks with no road-number is forbidden. Passenger cars and 2wd vehicles are strictly forbidden on roads that are marked with an F on public maps, as well as driving Kjölur (road F-35) or Kaldidalur (road 550). Driving on F-roads is only allowed on 4X4 (four-wheel drive) jeeps that the lessor agrees as appropriate for being driven on such roads. A breach of this article authorizes lessor to collect fines from the lessee, equaling the amount of own-risk as stated in lessors price list at any given time. The aforementioned provision on fines does not affect the lessees liability regarding damage.

The vehicle shall be handled and driven carefully. Only those named as drivers on the first page of the agreement are authorized to drive the automobile. If lessee drops off the vehicle at different location than stated in this rental agreement the lessor is allowed to charge lessee according to the lessors price list for the cost caused from fetching the vehicle. If the vehicle is not returned with a full fuel tank lessor is authorized to charge the lessee for refueling the vehicle according to the lessors price list. The lessee is liable for damage resulting from use of the automobile for which no compensation will be paid by the insurance company. This includes damages to the automobile and/or injury to passengers due to the following:

  1. Off-road driving, for example, in paths and tracks, on beaches, in areas only accessible during low tide, or in other trackless areas.
  2. Vehicle use that contravenes Icelandic law and/or the provisions of the lease or driving under the influence of any intoxicants.
  3. Driving in or across rivers or any kind of waterways. Such driving is totally the responsibility of the lessee.
  4. Driving in banks of snow and ice.

In the event of a collision or accident the lessee shall immediately notify the appropriate police authorities as well as the lessor of the incident, and the lessee may not leave the scene before the police have arrived.

The number of kilometers (km) that the vehicle is driven while the lease is in force is determined by reading a normal odometer supplied with the vehicle by the manufacturer. The lessee shall notify the lessor as soon as possible if the odometer is out of order or stops functioning during the term of the lease.

The lessor is not responsible for the disappearance of or damage to property that the lessee or any other party leaves in or transports with the vehicle. The lessee agrees to pay the lessor, upon request:

  1. a deposit amounting to the estimated cost of hiring the car.
  2. any and all expenses incurred by the lessor if he has to bring the vehicle back to his premises, in the event that it has been left somewhere without supervision, without regard to condition of the vehicle, the roads or the weather.

The lessee is not authorized to have repairs done or make changes to the vehicle or its accessories, or to put the vehicle up as any kind of security, without the prior consent of the lessor.

The lessee is liable for all parking meter charges and fines for breaking traffic laws.

The lessor reserves the right to collect a charge from the lessee, charged against his or her credit card, according to lessor's price list, lessor has to pay fines for the lessee and/or inform the authorities about the lessee because of traffic violations. The lessee is not authorized to use the vehicle to transport passengers for payment, lend it to others, or sublease it.

Obligations of the Lessor:

The lessor undertakes to supply the vehicle at the agreed time and see to that it meets the demands made for it.

If the vehicle malfunctions, the lessor shall supply the lessee with a comparable vehicle as soon as possible. If the damage is minor, the lessee is authorized to have repairs done on the vehicle after obtaining the lessors consent.

The lessor shall inform the lessee of the content of the agreement particularly as regards the obligations that the lessee undertakes by signing it.

The lessor shall inform the foreign lessee regarding Icelandic traffic regulations, traffic signs, and regulations banning off-road driving. The lessor shall particularly point out the dangers stemming from animals on the roads.

If the lessor wants to limit the use of the vehicle with regard to its equipment and/or conditions, this shall be done in writing when the lease is signed. The lessor undertakes to maintain valid liability insurance for his business operations.


The lease sum/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.

Each own-risk only applies to one incident. In instances of more damage that obviously did not occur at one and the same time, each own-risk SCDW applies to only one incident.

This Super Collision Damage Waiver - SCDW does not cover:

  1. Intentional damage or damage due to gross negligence on the part of the driver.
  2. Damage resulting from the driver being under the influence of alcohol, stimulants or sedatives, or in any other way incapable of driving the vehicle in safe manner.
  3. Damage due to race or test driving.
  4. Damage due to war, revolution, civil unrest or riots.
  5. Damage done by animals.
  6. Holes burned into seats, carpets or mats.
  7. Damage affecting only wheels, tires, suspension, batteries, glass (other than windows), radios, or loss by theft of parts of the vehicle and damage resulting from this.
  8. Damage caused by driving on rough roads to the vehicles transmission, drive, other parts that are in or attached to the chassis; damage to the chassis resulting from scraping the bottom on rough roads as a result of ridges being left by the road graders; stones lodged in the road surface or on the shoulder of the road. The same applies to damage occurring when stones are thrown up, striking the underside of the vehicle during driving.
  9. Damages resulting from driving in places where vehicle traffic 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.
  10. Damages caused by sand, gravel, ash, pumice, or other kinds of earth material being blown onto the vehicle.
  11. If the vehicle is transported by sea, no compensation will be paid for damage caused by sea spray/seawater.
  12. Damage to vehicles caused by driving on roads marked with an F in public maps as well as driving on Kjolur (Road F-35) or Kaldidalur (road 550) (This does not extend to 4wd and all wheel drive cars accepted by Star Car Rental for use on mountain roads – approved cars are insured on all marked roads and tracks).
  13. Lessors loss because of the vehicle being stolen.
  14. Water damage to the vehicle.
  15. Damages to the door structure caused by wind gusts.
  16. Damages or cost caused by renter putting the wrong kind of fuel on to the tank of the car.
  17. Loss of the key to the rental car.
  18. Cost of renter draining the battery of the rental car.

In other instances, reference is made to the general conditions for accident/all-risks insurance.

General provisions:

Super Collision Damage Waiver (SCDW) included

The SCDW liability limit for damages is 120.000 ISK total.

The renter is responsible for any damage to the car up to the liability limits.

Zero Excess for SCDW + SAAP+ GP

Renters can also purchase Zero Excess option for SCDW + SAAP + GP insurances.

Lowers the excess of these insurances to ZERO. Enjoy a carefree experience by reducing the self-risk/deductible to Zero.

Subjected to the terms and conditions of the insurances.

Theft Protection (TP) included

TP covers theft of rental vehicle. Self risk amount is 0.

Gravel Protection (GP) included

Gravel protection includes damage to windscreen, headlights and the car when gravel or rocks get thrown on the vehicle by another car, self risk is 0 except for broken windshield self risk is 15.000 ISK.

Sand and Ash Protection (SAAP) Not included

This is our new optional insurance which we offer and is the only insurance not included in the price.

For our customers protection we have decided to offer an insurance which covers our customers against damage due to sand and ash storm which damages the paint of the car, windows, lights and plastic. These damages can cost between 3000-9000 Euros to fix.

By purchasing SAAP the self risk in case of damage from sand and ash is lowered to 90.000 ISK. If you also have our Zero Excess option the self risk of the SAAP goes down to 0 ISK.

We offer the SAAP for only 1.500 ISK per day. Volcano eruptions in the past years have increased the risk of damage to the paint and windows of all cars and no insurance company will cover these damages. In high winds and dry weather the ash from the volcanos and sand in the south coast can cause huge damage to the cars and all the cost has fallen on the renter, until now.

General terms:

The Lessee confirms with his or her signature to this rental agreement that he or she received the vehicle and attachments in sound condition.

Signing this rental agreement is equal to lessees signature for a credit card transaction due to payments of charges which lessor charges to lessees credit card and is rightfully claimed by lessor according to provisions of this rental agreement.

This rental agreement shall always be in the vehicle while at the responsibility of the lessee.

Additions and amendments to the conditions and provisions of this lease agreement shall be made in writing.

Icelandic law applies to agreements made on the basis of terms stated above. 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 the lease agreement, they will be heard before the lessors legal venue.

It should be pointed out that disputes between the parties to the lease agreement can be submitted to the Arbitration committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.


No insurance covers damages to the underside of the rented vehicle or damages due to driving through rivers or any kind of waterfall. CDW and SCDW do not cover such damages. Such damages are always the lessees full responsibility. Please see more about insurance in the articles here above.

Taking the car outside of the country is forbidden


Free cancellation until 48 hours before start of the rental.

You can reply to your booking confirmation email to let us know that you will be cancelling your booking.

We will send you an e-mail back to confirm your cancellation.

Privacy Policy

You can view our privacy policy at the following link: https://starcarrental.is/privacy-policy