Terms and Conditions

1. Vehicle & Delivery

Project Car Rental will deliver the vehicle at a predetermined time and place. The vehicle will be clean, in working condition, and with a full tank of fuel, in compliance with official registration standards.

If the vehicle malfunctions due to normal wear and tear, or for reasons for which the renter cannot be held responsible, Project Car Rental will deliver a comparable replacement vehicle as quickly as possible or arrange authorised repairs without delay. No compensation will be paid for accommodation or any other incidental expenses resulting from such a malfunction. A refund will be issued for any lost rental day if the renter is unable to use the vehicle for more than 24 hours.

Project Car Rental will maintain valid liability insurance for its operations and all mandatory insurances for each vehicle.

Project Car Rental reserves the right to substitute the reserved vehicle type with a similar or upgraded model if the original is unavailable.

No responsibility is taken for items left in the vehicle after drop-off. Upon request, if the item is found, it will be shipped back at the renter's expense with a minimum handling fee of ISK 5,500. Prices vary depending on the size of the item and shipping distance. The renter agrees this fee may be charged to the credit card provided at the start of the rental.

All vehicles are strictly non-smoking. Evidence of smoking — including stubs, ash, or odour — will result in a cleaning fee of ISK 50,000. The renter agrees this fee may be charged to the credit card provided at the start of the rental.

If the vehicle shows any sign of malfunction, the renter must contact Project Car Rental immediately. If any red warning lights appear on the dashboard, the vehicle must be stopped immediately and Project Car Rental contacted before continuing.

2. Renter Requirements

The renter agrees to all provisions of this contract and confirms having received a copy of the rental agreement and these terms and conditions. The renter confirms the vehicle and its accessories were received in proper and safe condition.

The driver must be at least 21 years old and must have held a valid driver's licence for at least one year prior to rental. The licence must be presented at the start of the rental. The driver must abide by Icelandic law and regulations at all times.

The renter is responsible for the vehicle from the moment the keys are received until the vehicle has been returned and inspected by Project Car Rental.

Only drivers registered in this agreement may operate the vehicle. If an unregistered driver operates the vehicle, all insurance becomes null and void. The renter will be fully liable for the vehicle and all resulting damages, and will be subject to a fine of ISK 35,000.

The renter is not permitted to:

• Authorise repairs or modifications to the vehicle or its accessories
• Use the vehicle as collateral or guarantee
• Use the vehicle for paid passenger transport
• Lend or sublet the vehicle to others
• Take the vehicle outside of Iceland

3. Minimum Rental Period

The minimum rental period is 4 days. No refunds are issued for early returns.

4. Return Conditions

The vehicle must be returned with all accessories (including tyres, tools, and documents) in the same condition as received, except for normal wear and tear. Missing or damaged accessories will be charged at cost price to the card provided at the start of the rental.

The vehicle must be returned at the predetermined time, date, and location stated in the rental agreement, or earlier if requested by Project Car Rental.

Returning the vehicle to a location other than agreed will result in a drop-off charge based on the distance from the agreed return point.

The fuel tank must be returned at the same level as at pick-up. Missing fuel will be charged to the renter's card along with an additional service fee of ISK 5,000.

The vehicle must be returned reasonably clean. A vehicle returned excessively dirty — covered in mud, tar, or similar — is subject to a cleaning fee of ISK 50,000.

An extension of the rental period is subject to availability and must be confirmed in writing by Project Car Rental in advance.

5. Usage Restrictions & Fines

The vehicle must be driven with due care and in compliance with Icelandic law at all times. The following are strictly prohibited, and the renter accepts full liability — including all damages and applicable fines — for any violations:

Only 4×4 vehicles specifically approved by Project Car Rental may be driven on F-roads. The above fines do not limit the renter's obligation to pay compensation for any loss or damage to the vehicle resulting from a violation.

The renter is responsible for all traffic fines, parking charges, speeding fines, and toll charges incurred during the rental period. A handling fee of ISK 5,500 is charged for each official inquiry Project Car Rental must respond to on the renter's behalf. The renter agrees these fees and charges may be charged to the card on file.

Project Car Rental is not responsible for the renter's property left in or transported with the vehicle.

6. Collision & Accident

In the event of a collision or accident, the renter must immediately notify both the police and Project Car Rental. The renter may not leave the scene before the police arrive or an accident report has been completed. All damage to the vehicle must be reported to Project Car Rental regardless of insurance coverage.

The number of kilometres driven is determined by the vehicle's odometer. The renter must notify Project Car Rental without delay if the odometer malfunctions during the rental period.

7. Government Road Usage Fee (Kílómetragjald)

Iceland has a government-imposed road usage fee (kílómetragjald), effective from 1 January 2026. Project Car Rental collects this fee on behalf of the Icelandic authorities.

• Flat daily rate: The fee is ISK 1,550 per rental day, regardless of kilometres driven.
• Collected at pick-up: The full amount for the rental period is collected at the start of the rental.
• Pass-through of fees: The renter agrees to pay Project Car Rental for any kílómetragjald or successor government road usage fees at the rates and rules in force under Icelandic law.
• Changes: Rates, vehicle categories, and calculation methods may change. Project Car Rental may pass through any such changes without prior notice.
• Non-refundable: Government road usage charges are non-refundable, including in the event of early return.

8. Insurance

The rental fee includes mandatory vehicle insurance, including third-party liability and accident insurance for the driver. Third-party liability coverage is at the level stipulated by Icelandic law. If the renter causes damage to a third-party vehicle without causing damage to the rented vehicle, the third-party liability is ISK 55,000.

All rentals include Basic insurance. The renter may upgrade to a higher coverage plan through Project Car Rental:

No insurance plan covers the following:

• Intentional damage or damage due to gross negligence
• Damage caused while driving under the influence of alcohol, drugs, or controlled substances
• Damage caused by a non-registered driver
• Damage caused during racing or test driving
• Damage caused by war, revolution, civil unrest, or riots
• Damage caused by animals
• Burns to seats, carpets, or mats
• Damage to wheels, tyres, suspension, batteries, glass (excluding windows), or radios
• Undercarriage damage
• Damage from driving where prohibited
• Water damage to the vehicle, its engine, electrical system, or accessories
• Sand, gravel, ash, or pumice damage — Gravel Protection covers gravel/windshield damage only
• Damage caused by wind blowing up the door while opening it
• Damage to the roof or hood caused by standing, sitting, or climbing on the vehicle
• Damage from adding the wrong fuel, oil, coolant, AdBlue, or other liquids
• Damage from running the vehicle with insufficient oil, coolant, or fuel

The vehicle retrieval fee is ISK 550 per km (round trip), with a minimum of ISK 45,000, calculated from Project Car Rental's office.

9. Loss of Use

If the vehicle is unavailable for rental due to damage caused by the renter, the renter is liable for lost rental income at the vehicle's standard daily rate for each day the vehicle is out of service.

10. Cancellation Policy

All cancellations must be submitted in writing by email to Project Car Rental.

• More than 48 hours before pick-up: Full refund of any confirmation fee paid
• Less than 48 hours before pick-up: No refund — the confirmation fee is retained
• No show or early return: No refund

11. General Provisions

The renter confirms by signing the rental agreement and inspection form that the vehicle and its accessories were received in good condition. A copy of this rental agreement shall remain in the vehicle during the rental period.

Any changes to the rental are subject to availability and must be confirmed in writing by a Project Car Rental representative.

Project Car Rental is authorised to repossess the vehicle without notice if it has been illegally parked, used in breach of this agreement, or appears to be abandoned. All costs arising from such repossession will be charged to the renter.

By providing credit card details, the renter authorises Project Car Rental to charge the card for the rental fee and any fees, charges, fines, or damages arising from this agreement. Project Car Rental retains this right for up to six months after the rental ends.

This rental agreement is governed by Icelandic law. Any legal disputes will be heard at the District Court of Reykjanes, Iceland. Disputes may also be submitted to the Arbitration Committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.