TERMS AND CONDITIONS
Insurances
We at Lotus Car Rental aim to provide you with peace of mind during your trip. We offer what is arguably the best car rental insurance available in Iceland: The Platinum Insurance Plan with a liability/deductible of 0 ISK, covering river crossings, damage to the chassis, engine, transmission, towing costs, and more. Third-party liability insurance is included with all rentals.
For more information about our insurance options, please click here.
Debit Card Imprint and Deposit
All rentals are subject to the full terms and conditions of the rental agreement at the time of rental. A debit card imprint and deposit equivalent to the selected insurance liability will be collected at the start of all rentals for security purposes, even when a voucher covers the rental cost. This deposit will be released after a thorough inspection by Lotus Car Rental at the end of the rental period. The debit card imprint or deposit may be utilized to cover additional charges, such as extra insurance, parking fines, damages, or any expenses resulting from the renter's use of the vehicle.
Note: that renters who purchase the Platinum Insurance Plan are exempt from paying any deposit. For the Gold Insurance Plan, the deposit is 65.000 ISK, for the Silver Insurance Plan, it is 150.000 ISK, and for the Bronze Insurance Plan, it is 360.000 ISK.
Credit Card Imprint
All rentals are subject to the full terms and conditions of the rental agreement 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 rental cost. This credit card imprint may be used to settle any additional charges, including extra insurance, parking fines, damages, or any expenses related to the rented vehicle resulting from the renter's use.
Age Requirement and Driver's License
All drivers must have held a valid driver’s license for at least 12 months and present it at the start of the rental.
The minimum age to rent smaller and medium-sized vehicles, as well as Dacia Duster and RAV4 roof-tent models, is 20 years.
For large vehicles, luxury vehicles, 9-seater vans, California models, and Hilux campers, the minimum age requirement is 23 years. For more details, please visit Our Cars. Renters who do not meet the minimum age requirements but have held a valid driver’s license for at least 12 months may pay a Young Driver Fee.
Cancellation Policy
- Cancellations made 24 hours or more before the scheduled pick-up time will receive a full refund.
- Cancellations made within 24 hours of the scheduled pick-up time will not be refunded. However, customers who have prepaid for their rental will have the option to receive a voucher for the full amount of their booking. The voucher can be used for future rentals with us.
This includes cancellations resulting from flight cancellations due to weather conditions or airline decisions. If your flight is canceled and your cancellation falls outside the 24-hour refund window, you will not be subject to a refund, but you will still be eligible for a voucher for the full amount of your booking, which can be used for future rentals.
This policy applies to all cars booked from 3/2/2025.
Pick-up and Drop-off Service
No additional fees are charged for pick-up and drop-off at Lotus Car Rental's office in Keflavik. An extra fee will be applied for pick-up and drop-off at a chosen hotel location in Keflavik. We offer a complimentary shuttle service from Keflavik International Airport to our office. For further details regarding the pick-up and drop-off service, please click here.
Late or Early Returns
Late returns exceeding one hour past the scheduled drop-off time will result in an additional day's charge. The renter(s) can return the vehicle earlier than the scheduled drop-off time, and any price difference will be refunded if Lotus Car Rental is notified at least 48 hours before the scheduled pick-up time; otherwise, no refund will be provided.
Fuel
The vehicle is typically provided with a full tank of fuel, and renters are required to return it in the same condition. If the vehicle is an electric vehicle (EV), it must be returned with a battery charge of at least 50%. A 3.500 ISK administration fee will be imposed if the vehicle is not returned with a full tank of fuel or above 50% battery charge. The renter(s) are fully responsible for repair costs if the wrong type of fuel is pumped into the vehicle.
Vehicle Types
Lotus Car Rental reserves the right to substitute vehicles if the reserved vehicle type is unavailable. In such cases, a similar vehicle class or a higher-class vehicle will be provided.
Subject to Terms and Conditions
In the event of a collision or accident, the renter must immediately notify the appropriate police authorities and Lotus Car Rental. The renter(s) may not leave the scene until the police have arrived or Lotus Car Rental has provided permission.
Failure to comply with any conditions of this contract may result in the renter(s) bearing all losses and damages incurred by the owner. The renter(s) agrees to rent the above vehicle and elects to pay all amounts due under this agreement using the payment method details provided in this document.
The renter(s) also accepts responsibility for all traffic violations. An administration fee of 2.000 – 5.000 ISK will apply for any unpaid fines or delayed processing of infringements.
Renters’ Responsibility
The renter(s) are responsible for maintaining antifreeze, AdBlue, and oil levels in the vehicle. Any costs incurred will be reimbursed upon presentation of a receipt. In the event of a vehicle malfunction or signs of overheating, the renter(s) must immediately stop the vehicle; otherwise, the renter(s) may be held liable, and a loss of the deposit may occur.
TAX
A local value-added tax (VAT) of 24% is included in all prices.
Road Tax (km fee)
Starting January 1, 2024, Iceland will require a kilometer fee for electric and hybrid cars. Lotus Car Rental will collect this fee on behalf of the Icelandic government: 6 ISK per kilometer for electric cars and 2 ISK per kilometer for hybrid cars. For convenience, Lotus Car Rental will charge this fee in advance, based on average kilometers driven. This aims to streamline processes and save time during vehicle returns. If the road tax is not prepaid, the fee will be charged after the rental. If the government adjusts the fee or extends it to other vehicle types, renters will be responsible for any additional payments to Lotus Car Rental.
Payment
For specific payment requests or inquiries regarding your car rental, please email us at: lotus@lotuscarrental.is.
Service Fee
The vehicle pick-up fee after damage is 400 ISK per km, with a minimum charge of 35,000 ISK.
The spare key delivery fee, in the event of lost vehicle keys, is 300 ISK per km.
Other Fees
Losing/damaging a Type 2 charging cable incurs a fee of 50.000 ISK
Losing/damaging a 220V charging cable incurs a fee of 70.000 ISK
Losing/damaging a GPS device incurs a fee of 45.000 ISK
Losing/damaging a Wi-Fi dongle incurs a fee of 15.000 ISK
Losing/damaging a booster seat incurs a fee of 15.000 ISK
Losing/damaging a child seat incurs a fee of 60.000 ISK
RENTAL AGREEMENT
Obligations of the Renter
1. The renter(s) agrees to the provisions of this lease and has received a copy of it.
2. The renter(s) will return the vehicle:
a. And all accessories (including tires, charging cables, and tools) in the same condition they were when received, apart from normal wear due to use.
b. On the date specified in this lease, unless otherwise agreed upon later.
c. To Lotus Car Rental’s premises unless otherwise specified.
d. With a full tank of the appropriate fuel. The lessor is permitted to charge the lessee for the missing fuel as well as a service fee according to the terms of the lessor.
e. If the vehicle is an EV, the renter(s) will recharge the vehicle above 50% battery charge. Renter(s) will be charged a service fee according to the terms of the lessor.
3. If the renter(s) do not return the vehicle at the time agreed upon in this lease or do not declare their intention to extend the lease, Lotus Car Rental or the police is authorized to repossess the vehicle without further notice and at the renter’s expense. Extending the lease is dependent upon the consent of Lotus Car Rental. If the renter(s) returns the vehicle 1 hour or later after the lease has expired, Lotus Car Rental is authorized to demand up to 24 hours of rental under the terms of this lease.
4. 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 vehicle. The renter is liable for damages resulting from the use of the vehicle for which no compensation will be paid by the vehicle’s insurance company. This includes damage to the vehicle and/or injury to passengers due to the following and towing cost of retrieving the vehicle:
a. Off-road driving and driving where driving is prohibited.
b. Driving across rivers or any kind of watercourse (Only covered by Platinum Insurance Plan).
c. Intentional acts or gross negligence.
d. Use of intoxicants by the driver.
e. Vehicle use that contravenes Icelandic law and/or the provisions of this lease.
5. In the event of a collision or accident, the renter(s) shall immediately notify the appropriate police authorities as well as Lotus Car Rental of the incident, and the renter(s) may not leave the scene before the police have arrived or received permission from Lotus Car Rental to do so.
6. The number of kilometers (km) that the vehicle will be driven while this lease is in force is determined by reading the odometer supplied with the vehicle by the manufacturer. The renter(s) shall notify Lotus Car Rental as soon as possible if the odometer is out of order or stops functioning during the term of the lease.
7. Lotus Car Rental is not responsible for the disappearance of or damage to property that the renter(s) or any other party leaves in or transports with the vehicle.
8. The renter(s) agrees to pay Lotus Car Rental, upon request:
a. A deposit amounting to the estimated cost of hiring the vehicle.
b. Any and all expenses incurred by Lotus Car Rental if they have to bring the vehicle back to their premises, if the vehicle has been left somewhere without supervision, regardless of the condition of the vehicle, the roads, or the weather.
9. The renter(s) are 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 Lotus Car Rental.
10. The renter(s) are not allowed to drive a vehicle on F-roads that are not allowed on F-roads by Lotus Car Rental. All 2-wheel drive vehicles, 9-seater vans, and electric vehicles are not allowed on any F-roads.
11. The renter(s) are liable for all parking meter charges and fines for breaking traffic laws.
12. The renter(s) are not authorized to use the vehicle for transporting passengers for payment, loan it to others, or sublease it.
13. The renter(s) are responsible for letting Lotus Car Rental know of any malfunctions or something not working properly with the vehicle during and/or at the end of the rental.
14. The renter(s) are strictly forbidden from driving any vehicle across the river Krossá on F249.
Obligations of Lotus Car Rental
15. Lotus Car Rental will supply the vehicle at the agreed time and make sure it meets all the demands.
16. If the vehicle malfunctions, Lotus Car Rental shall supply the renter(s) with a comparable vehicle as soon as possible. If the damage is minor, Lotus Car Rental is authorized to have repairs done on the vehicle after obtaining the renter’s consent.
17. Lotus Car Rental shall inform the renter(s) of the content of the agreement, particularly the obligations that the renter(s) undertakes by signing it.
18. Lotus Car Rental shall inform a foreign renter(s) about Icelandic traffic regulations, traffic signs, and regulations banning off-road driving. Lotus Car Rental shall particularly point out the danger stemming from animals on the roads.
19. If Lotus Car Rental wants to limit the use of the vehicle regarding its equipment and/or road conditions, this shall be done in writing before this lease is signed.
20. Lotus Car Rental will maintain valid liability insurance for its business operations.
Insurance Terms & Coverage
21. Lotus Car Rental ehf. acts as an insurance distributor on behalf of Sjóvá-Almennar tryggingar hf. Lotus is registered with the Central Bank of Iceland as an entity licensed to distribute insurances.
22. By accepting the lease agreement the renter accepts that Sjóvá-Almennar is notified of this lease agreement and its parties.
23. Product information documents with the main information about the insurance (IPID) can also be found on the Sjóvá-Almennar website.
24. Lotus Car Rental reserves remuneration or commission from the renter for any purchased insurances on the basis of an agreement between the parties.
25. The rental fee includes mandatory vehicle insurance, covering liability insurance and accident insurance for both the driver and the vehicle owner. Third-party liability insurance is provided in accordance with the coverage limits set by Icelandic law at any given time.
26. Lotus Car Rental shall carry out a visual inspection of the condition of the vehicle for the purpose of a risk assessment for insurance and exempt from insurance cover any damage that may occur to it before the insurance takes effect. By accepting this lease agreement, the renter confirms that he has received the vehicle in good condition.
27. The terms of the insurance can be found on this link Skilmálar and are a part of these terms. The renter is also encouraged to familiarize himself with Sjóvá's general terms and conditions on the website, which apply to all Sjóvá insurance policies.
28. Depending on the type of damage and the level of insurance coverage chosen, the renter(s) may be held liable for up to the full value of the vehicle. Renters have the option to purchase additional damage protection coverage as follows:
a. Silver Insurance Package
The Silver Insurance Package includes:
• Third-Party Liability Insurance: Covers damages to third parties, with coverage limits determined by Icelandic law. This also applies to individual driver liability.
• Super Collision Damage Waiver (SCDW): Reduces financial liability for vehicle damage caused by collisions, except for damages occurring on F-roads, incidents involving animals, or exclusions specified in the rental agreement. This coverage also includes personal accident protection for the driver and passengers, covering medical expenses such as emergency treatment, hospital stays, and medical examinations. This waiver does not apply when driving on closed roads, off-road, F-roads, or in prohibited areas.
• Theft Protection (TP): Covers theft of the rented vehicle.
• The deductible for Silver Insurance is 150.000 ISK per accident.
b. Gold Insurance Package
The Gold Insurance Package includes everything covered by the Silver Insurance Package and also provides additional protections:
• Gravel Protection (GP): Covers damages to the windscreen, headlights, front bumper, mirrors, hood, or any other part of the vehicle caused by gravel or rocks thrown onto the car by another vehicle, machine, or person. Exclusions: This protection does not cover damage to the radiator or engine.
• Sand & Ash Protection (SAAP): Standard car insurance does not cover damages caused by sand or ash storms. This coverage protects against such damage.
• The deductible for Gold Insurance is 65.000 ISK per accident.
To purchase the Gold Insurance Package, the renter must first purchase the Silver Insurance Package.
c. Platinum Insurance Package
The Platinum Insurance Package provides full protection with a 0 ISK deductible for all insurable instances and significantly reduces the maximum towing cost to 35.000 ISK, except for exclusions outlined in paragraph 24.
In addition to everything covered under the Silver and Gold Insurance Packages, the Platinum Package includes:
• Tire Insurance: Covers damage to the tires and wheels. Flat tires: The renter is responsible for changing the tire and installing the spare wheel. If the renter is unable to change the tire, they must arrange for transportation to the nearest tire shop for repair or replacement.
• River Crossing Protection (4x4 Vehicles Only): Covers water damage to the engine, transmission, and radiator when crossing rivers. This protection is only valid for 4x4 vehicles authorized by Lotus Car Rental to drive on F-roads.
• F-road Insurance (4x4 Vehicles Only): Covers damages incurred while driving on F-roads (highland roads). Also covers damages to the vehicle's chassis.
• Animal Damage Protection: Covers damage caused by animals, such as horses or sheep. Standard rental insurance in Iceland does not cover these types of damages.
• Towing Cost Coverage: With this insurance, the maximum deductible for towing is reduced to 35.000 ISK.
To purchase the Platinum Insurance Package, the renter must first purchase the Silver Insurance Package.
29. The following damages and incidents are not covered by any insurance unless explicitly stated otherwise:
a. Intentional damage or damages due to gross negligence by the driver.
b. Damages resulting from the driver being under the influence of alcohol, stimulants, or sedatives or in any other way incapable of driving safely.
c. Damages due to racing or test driving.
d. Damages caused by war, revolution, civil unrest, or riots.
e. Damages caused by animals (only covered by the Platinum Insurance Package).
f. Holes burned into seats, carpets, or mats.
g. Damages affecting only: wheels, tires, suspension, 12V batteries, non-window glass, radios, or theft of vehicle parts.
h. Damages to the vehicle’s transmission, drivetrain, and chassis caused by rough roads, scraping against road ridges, or stones being thrown up against the underside of the car (only covered by the Platinum Insurance Package).
i. Damages or towing costs due to driving in restricted areas, including but not limited to:
i. Closed roads, off-road areas, or locations where driving is prohibited.
ii. Paths, snowbanks, ice, unbridged rivers or streams, beaches, areas accessible only at low tide, or any other trackless terrain.
iii. F-roads when driving a vehicle not approved for F-road use (e.g., 2WD vehicles, 9-seater vans, and electric vehicles are NOT permitted on F-roads).
j. Damages caused by sand, gravel, ash, pumice, or other airborne debris (only covered by the Gold and Platinum Insurance Packages).
k. Damage to the bodywork or door frame caused by strong winds (only covered by the Platinum Insurance Package).
l. Damages caused by seawater or sea spray if the vehicle is transported by sea.
m. Loss or damage to vehicle keys (not covered by any insurance).
n. Filling the vehicle with the wrong fuel (not covered by any insurance).
o. 12V vehicle batteries (not covered by any insurance).
p. If the vehicle is transported by sea, no compensation will be paid for damages caused by sea spray/seawater.
q. Electric Vehicles (EVs):
If the renter fully depletes the EV’s battery, they are fully responsible for any transportation fees and recharging costs. Loss of the charging cable is not covered by any insurance.
r. Crossing the river Krossá on F249 (not covered by any insurance).
s. For further details, reference is made to the general terms and conditions for accident insurance (Kaskótrygging) set by Sjóva Insurance Company at www.sjova.is.
30. The renter(s) may decline all optional insurance coverage when booking the vehicle. However, the mandatory third-party liability insurance is always included. If the renter(s) choose to decline all insurance coverage, they must pay a deposit of 500,000 ISK upon arrival. All rental prices are displayed with the Silver Insurance Plan included by default online.
31. A customer may appeal a dispute to the Complaints Committee on transactions with financial undertakings:
Úrskurðarnefnd um viðskipti við fjármálafyrirtæki,
Guðrúnartún 1,
105 Reykjavík,
phone: 578-6500,
E-mail: fjarmal@nefndir.is
To request a ruling from the Committee, a special form must be filled out which can be found on www.nefndir.is/fjarmala. Further information about the committee, appeal fees, who can apply to the committee, etc. can be found on the committee's website, www.nefndir.is/fjarmala.
General Provisions
32. This lease agreement should always be kept in the vehicle either in printed or in electronic form.
33. Additions and amendments to the conditions and provisions of this lease agreement shall be made in writing.
34. Icelandic law applies to agreements made based on the terms cited above. This includes any claims for compensation that might be made. It also applies 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 Lotus Car Rental’s legal venue.
35. Disputes between the parties to this lease agreement can be submitted to the active Arbitration committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.
36. It’s the driver’s responsibility to know road conditions and whether the road is open or closed.