Terms and conditions

In these terms and conditions „Lessor“ is who provides the rental service and the „Client“ is company or person referred to as the hirer in the rental contract.

1. Vehicle

Project Car Rental will provide the delivery of the vehicle a predetermined time and place. The vehicle will be clean and with a full tank of gas. The vehicle will be in working condition and comply with official registration standards.

If the vehicle malfunctions owing to normal wear and tear, or for other reasons for which the renter cannot be held responsible, Project Car Rental shall deliver the renter with a comparable vehicle as quickly as possible at a location decided by Project Car Rental or arrange to have repairs done without delay by an authorised service partner. In the case of such malfunction, Project 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.

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

No responsibility is taken for items left in the rented vehicle after drop-off. Upon request and if the item is found, items will be shipped back with a handling fee of ISK 5.500 minimum. 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.

All vehicles are non-smoking. Failure to comply will result in a cleaning fee of ISK 35.500 minimum. The client agrees that this fee may be charged from the credit card provided by the renter at the beginning of the rental.

If the vehicle shows any sign of mail function, the client will contact Project Car Rental immediately for a solution. If any red lights appear in the dashboard, the car must be stopped immediately.

2. Client

The client agrees to the provisions of this contract and has received a copy of the rental agreement and the terms and conditions. The client has received the mentioned vehicle and its accessories in a proper and safe condition. The driver shall be at least 21 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 driver shall abide by Icelandic law and regulations when driving.

The client is responsible for the rented vehicle from the time it receives the keys and agrees with the state of the car as appointed in the contract until it has been returned and inspected.

If an unregistered driver is allowed to drive the vehicle the client will be subject to a fine of ISK 35.000.

The client 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.

The client is not permitted to use the vehicle for transportation of passengers for payment, lend it to others, or sublet it.

3. Return of the vehicle

The client shall return the vehicle 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.

The vehicle shall be returned at the predetermined time and date as stated on the rental agreement or sooner if Project Car Rental demands it.

Failing to return the vehicle to the predetermined place as stipulated in the contract will result in a drop-off charge in accordance with the distance from the predetermined. 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.

The fuel tank shall be 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. Additional service charge of ISK 5.000 is added to the price of the fuel.

The vehicle shall be 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 of 15.000. The renter agrees that the cleaning fee will be charged from the credit card that the renter provided at the beginning of the rental.

An extension of the rental agreement is dependent on the approval of Project Car Rental. If the renter returns the vehicle one hour or more after the expiry of the rental agreement, Project 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, Project 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 Project Car Rental of the renter’s intention to extend the rental, Project Car Rental or the police are also permitted to repossess the vehicle without further notice and at the expense of the renter.

4. Specific conditions

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 Project Car Rental. The above-mentioned provision does not affect the obligations of the renter to pay Project Car Rental compensation for the loss or damage of the vehicle. Only 4×4 vehicles that are specifically approved by Project 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.
• Project 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 Project Car Rental upon request:

• A deposit equivalent to the expected cost of hiring the vehicle.
• Any and all expenses accruing to Project 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.

5. Collision or accident

In the instance of a collision or accident, the renter shall immediately notify the police as well as Project 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 Project 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 Project 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 5.500 is charged by Project Car Rental for any official inquiry the company must respond to or any fine or charges Project 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 Project 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 Project Car Rental. Failing to comply with this article is subject to a fine of a minimum of ISK 80.000, plus ISK 150 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 Project 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 Project 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.

6. Insurance

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 additional coverage, 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 driving under conditions that are prohibited in the Terms & conditions. In addition, no insurance will 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.
• 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.
• 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 Project 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.

7. General Provisions

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.

Project 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.

Additions and amendments to the conditions and provisions of this rental agreement shall be made in writing and confirmed in writing by a Project Car Rental representative.

By providing his/her credit card details to Project Car Rental, the renter agrees with his/her signature on this rental agreement that Project 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 unauthorized 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

Project 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 Project 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.