Terms & Conditions of a Rental

General rental information



Deposit policy

Total rental estimate.

Cash rental deposit

No Cash Rentals accepted. A valid Credit Card is a must.

Financial qualification

Renters valid Credit Card required.

Credit cards accepted

Mastercard, Visa, Diner's club, Eurocard, American Express.

Age and Driver’s license

Minimum driver age is 20 or 23 years, according to the car group and driver license held for at least one year.

Airport surcharge

Applied to all rentals starting or ending at Keflavík International Airport

Fuel Policy

The car will have full tank at the start of a rental and should be returned full. If the car is returned with missing fuel the cost will be charged with addition of a refueling charge.

Per-km Tax

Starting from January 1, 2024, Iceland Authorities have introduced a new Road Tax. The purpose of this tax is to contribute to the construction and maintenance of the Icelandic road system. Under this new Per-km Tax system, Plug-in Hybrid Electric Vehicles (PHEV) are charged ISK 2 per kilometer (approximately Euro 0.014), while electric cars face a rate of ISK 6 per kilometer (approximately Euro 0.04). Conventional fossil fuel cars will have this tax added in the price of petrol or diesel. As part of the regulations, Europcar Iceland is required to apply this Per-km Tax upon the return of rental cars, as it is based on the total distance driven. Therefore, we will be charging for this additional cost after the return of the rental vehicle.

Charging Policy

Electric Vehicles should be charged to at least 60% upon return, otherwise Charging & administration fee may apply.

Pet Policy

Pets are allowed in vehicles with no additional fees. Renters are responsible for any damage caused by the pet, and to avoid cleaning charges, vehicles should be returned clean and free of pet hair.

Smoking and Vaping Policy

Our fleet is 100% smoke-free. All types of smoking are prohibited in our cars, including vaping. A cleaning fee will be charged if the non-smoking policy is violated.

Handling fee

ISK 1500 handling fee is added to charges if Höldur must pay fines for the renter and/or inform the authorities about the renter because of traffic violations.

Cancelation policy for online reservations made through our website¹ www.holdurcarrental.is

Reservations canceled more than 48 hours prior to pick up time²
You pay no cancelation fee.
If prepaid, you get 100% refund of what you have already paid.

Reservations canceled less than 48 hours prior to pick up time / no-show²
You pay 10% of the total reservation value.
If prepaid, you get 90% refund of what you have already paid.

Renter does not pick up car (No-Show)

If renter does not pick up the car as stated in the booking confirmation or fails to show up at the selected rental station, Höldur car rental is authorized to collect a non-compliance fee, referred to here as "No-Show Fee" according to pricelist. Prepaid bookings will not be refunded if the renter does not pick up the car as stipulated in the booking confirmation or fails to show up at the rental station.

¹ You can only modify or cancel the reservations which have been made online by yourself on our website. For changes to reservations made via a Travel Agency, Tour Operator or Car Rental Broker site please contact the relevant agent.

² Prepaid reservations can only be amended or canceled by contacting our customer services by phone Tel +354 461 6000 during office hours on weekdays (9am - 5pm GMT).


Extras & Services

Additional driver

With the consent of Europcar and the renter, the vehicle may be driven by other persons which must be included on the rental agreement at time of pick up. Conditions and additional driver charges apply.

Available Extras

Child Seat Baby, Child Seat Infant, Child Booster Seat, Navigation System, Mobile WI-FI, Free Travel App, Carbon Offset Option, The Europcar Magazine and Detailed Roadmap.

One-way rentals

A) Domestic: Available at additional cost between all stations. B) International: Not Available.

Chauffeur driven service

Yes, we provide chauffeur driven service. Please contact us for details.

Delivery / Collection

Available within city limits. Please contact us prior to rental for arrangements and pricing.

Winter Tires

From November 1st until April 15th our cars come equipped with studded winter tires. Exception from this could be, but not necessarily, certain models (such as electric vehicles) intended for use in the Reykjavík capital area only.


Driving Restrictions

  • Driving outside marked trails is prohibited and is subject to nature conservation law. 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 35) or Kaldidalur (road 550). Driving on F-roads is only allowed on 4X4 (four-wheel drive) jeeps that Höldur car rental agrees as appropriate for being driven on such roads.

  • If you rented a Motorhome from us, do not drive if the wind speed exceeds 15m/sec on public meters of the Icelandic Road & Coastal Administration. You are responsible for checking the weather conditions before your set out. Strong gusts can blow the vehicle off the road. If you ignore this warning and damage the car it will result in full payment of damages regardless of your insurance coverage.


Charges that are not covered by any insurance or protection

  • Charges applied when incorrect fuel has been added to the rented vehicles fuel tank, workshop hours and any damages to the vehicle’s mechanism.
  • Towing cost and vehicle replacement related to breakdown or damage that is the driver´s responsibility.
  • Towing cost and/or vehicle replacement if the renter/driver of the car runs out of fuel or electricity.
  • Fees and service charges resulting from the renter’s use of the car, such as parking charges and road-tolls as well as parking fines and fines resulting from violating traffic laws.
  • Fines and service charges resulting from driving rental cars on roads or tracks with no road number and/or driving Passenger cars and 2wd vehicles on roads that are marked with an F on public maps, as well as driving Kjölur (road 35) or Kaldidalur (road 550).
  • Fees and replacement cost for lost car keys and extra equipment.
  • Cleaning fee for Campers and Motorhomes.
  • Fine/cleaning fee if someone smokes inside the car because all our cars are non-smoking.

- Please see our pricelist for details.


Damages that are not covered by any insurance or protection

  • Damage caused by driving on rough roads to the vehicle's transmission, drive, battery, and other parts that are in or attached to the chassis; damage to the chassis resulting from scraping the bottom on rough roads.
  • Damages caused by driving in or across rivers or any kind of waterways. Such driving is totally the responsibility of the renter.
  • Damages to the rented vehicle caused by driving rental cars on roads or tracks with no road number and/or off-road driving, for example, on paths and tracks, on beaches, in areas only accessible during low tide, or in other trackless areas.
  • Damage done by animals.
  • Damage affecting only wheels, tires, suspension, batteries, and damage resulting from this.
  • Damages to the interior of the vehicle, such as holes burned into seats, carpets, or mats.
  • 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 a safe manner.
  • Damages to passenger cars and/or 2wd vehicles caused by driving on roads marked with an F on public maps as well as driving such cars on Kjölur (Road 35) or Kaldidalur (road 550).
  • Theft or damage because of the authorized driver’s/renter's lack of reasonable care in protecting the rental vehicle (for example, leaving the vehicle running and unattended).

- Please refer to the Rental Agreement for a full understanding of Damage Cover inclusions and exclusions.


Insurance options and self-risk amounts

CDW (Collision Damage Waiver) is included in our rates and covers you against Third Party Loss. Your Excess is ISK 250000 for passenger cars and/or ISK 450000 for 4x4 SUVs and bigger cars. CDW is included in our Basic Protection Package.

PAI (Personal Accident Insurance) is included in our rates according to Icelandic law. PAI provides protection for injuries suffered by you or your passengers and/or a lump sum indemnity if you or your passengers are disabled or if you die because of the collision (or an accident). PAI is included in our Basic Protection Package.

TP (Theft Protection) is included in our rates and covers you against theft of the vehicle. Does not cover the loss or theft of personal belongings. TP is included in our Basic Protection Package.

SCDW (Super Collision Damage Waiver) This option lowers the excess of the standard Collision Damage Waiver (CDW). Your Excess is reduced from ISK 250000 to ISK 60000 for passenger cars and/or from ISK 450000 to ISK 110000 for 4x4 SUVs and bigger cars. SCDW is included in our Medium Protection Package.

GP (Gravel Protection) Covers you against damages to the windshield and headlights caused by stones or gravel getting thrown at your car by another vehicle. Your Damage Liability Fee is reduced to zero amount in case of such damages. GP is included in our Medium Protection Package.

SADW (Sand & Ash Damage Waiver) Covers you against damage caused by sand, stone or ash storm. Such as ruined paint job, lights, glass, and plastic. SADW can be bought separately and is in no relation with other insurances. SADW is included in our Premium Protection Package.

ZERO (Zero Excess Cover) Our premium Damage Cover reduces your excess of the SCDW and SADW insurances to a Zero amount. This insurance option is only available when our Premium Protection Package is selected.