How damage works — evidence first
Damage charges need a policy reason, condition evidence, and an itemised repair basis — capped by the cover you chose.
How our fair-damage process works
360° video at pickup
Timestamped walkaround filmed before you drive — copy sent to you immediately.
Your trip
Drive with confidence knowing pre-existing damage is already on record.
360° video at return
Same walkaround filmed when you bring the car back.
New damage checked against evidence
Return video compared to pickup video. Pre-existing damage documented at pickup is not charged to you.
The pickup and return videos are our record for exterior damage — evidence before exterior-damage charges. Other fees (fuel, cleaning, fines) are backed by their own invoice or notice.
1. Your maximum exposure is one capped excess — and you choose the cap
Every price on this site includes Plus cover — our damage waiver with a capped excess for accidental exterior damage, with Gravel & Glass, Sand & Ash and Tyre Protection bundled. Zero Excess, the one optional upgrade, takes that cap to zero before you confirm your booking.
| Cover level | Your excess (own-risk) | Day rate |
|---|---|---|
| Essential (CDW) — included as standard | ISK 450,000 | Included in every rental |
| Plus (Super CDW) | ISK 150,000 | Included in every price |
| Zero Excess | ISK 0 | ISK 5,250/day |
Your exact excess and day rate are confirmed at booking before you pay.
| Add-on protection | Covers | Protection excess | Day rate |
|---|---|---|---|
| Gravel & Glass Protection (GP) | Front-windscreen, headlight & foglight stone-chips (gravel thrown by another vehicle) | ISK 0 | ISK 2,100/day |
| Sand & Ash Protection (SAAP) | Wind-blown sand & volcanic ash damage | ISK 0 | ISK 1,800/day |
| Tyre Protection | Tyre damage (excl. from standard CDW) | Covered with TP | ISK 1,800/day |
All day rates and protection excesses are confirmed at booking. No desk up-sell — every rate is shown online before you confirm.
2. Fair on damage — we both watch the same video
Our 360° handover-video practice — recorded at both ends and yours to keep
At pickup you sign a Vehicle Condition Report, and before you drive away — and again when you return the car — we record a timestamped walkaround video covering the entire exterior. You receive a copy — a link or a shared file — at the moment of pickup. If you spot damage that is not yet recorded, report it within 24 hours of pickup (email or WhatsApp) and it is logged as pre-existing.
- 1
At pickup
Timestamped 360° walkaround video — you get a copy on the spot.
- 2
On your trip
If anything happens, photograph it and call us first.
- 3
At return
A quick 360° video, compared frame-by-frame against pickup.
- 4
If there's a claim
We show you the exact frame and the itemised invoice before any charge.
- 5
Settled fairly
Covered damage is capped at your chosen excess; disputes go to a named board.
Our fair-damage practice:
We only bill for damage that appears in the return inspection and was not in the pickup inspection — and we show you the frame that proves it. You get the handover video at pickup, so pre-existing damage documented there is not charged to you.
The car is inspected on return at our Keflavík office during opening hours. If new damage is identified, it is photographed and priced per the published Damage Price List, and you receive an itemised Damage Liability Form together with the evidence.
Two promises around that record: you have 24 hours after pickup to report anything we missed (email or WhatsApp) and it is logged as pre-existing — no liability; and the handover video and photos are deleted within 30 days of return unless a claim is open.
If you return the car after hours, it is inspected the next business day and remains at your risk until that inspection. Before leaving the vehicle, record a clear 360° walkaround with your own phone and send it to us — it documents the car's condition at the moment of handback and gives both sides the same evidence standard.
Evidence before damage charges
For staffed returns we go through the car with you at the Keflavík office and talk through anything new on the spot. For after-hours returns, we inspect the next business day against the pickup record — the vehicle remains at your risk until that inspection — and bill only damage that is new against it, sharing the evidence with you on the itemised Damage Liability Form.
Fair wear and tear
We don't bill for tiny stone chips, normal tyre or brake wear, or the small marks any car picks up on Icelandic roads — only genuine new damage beyond normal use. Iceland is a hard environment; we factor that in.
What we have to prove before we charge you
A signed agreement on its own isn't enough. Under Icelandic consumer rules we only charge for damage when we can show all of:
- new — present in the return video and not in the pickup video;
- your responsibility, not fair wear and tear (the damage is genuinely yours);
- exclusion — any exclusion we rely on was shown to you before you paid;
- a published price basis — priced per the published Damage Price List, not an improvised figure;
- not already reimbursed — that we have not already been reimbursed for it by our own insurer.
If we can't show all five, we don't charge.
3. A card pre-authorisation hold — not a cash deposit
We do not hold your money. At pickup, we place a pre-authorisation hold on your credit or debit card — a small verification amount, not a deposit. This is a temporary block, not a payment — the amount does not leave your account, and it is released per your card issuer's procedures.
- The hold amount is shown on your booking page before you confirm.
- On a clean return, the hold is released — typically within a few working days, depending on your card provider.
- If covered (CDW-class) damage is found, it is priced per the published Damage Price List — capped at your chosen excess — and charged to the card on file with an itemised notification, plus a damage administration fee of ISK 25,500 per claim. The card may be charged for amounts owed under the rental agreement during the rental and for a reasonable period after it ends. Damage from an excluded use (river crossings, off-road, a 2WD on an F-road, wrong fuel) is your full liability and is not capped.
If you have bought Zero Excess, the covered-damage excess is ISK 0. Exact card authorisation rules are confirmed at booking.
4. Named exclusions — at every cover level
Some damage types remain excluded under Ring Road Cars cover rules regardless of what you buy. We tell you this upfront:
- Gravel and windscreen chips — unless you have added Gravel & Glass Protection.
- Sand and volcanic ash — unless you have added Sand & Ash Protection (SAAP).
- Water damage and river crossings — not permitted under any circumstances; not covered under any protection level.
- Underbody, suspension, and wheel arch — damage beneath the vehicle is excluded from CDW.
- Tyres — unless covered by your chosen protection.
- F-roads and off-road driving — F-roads require a suitable 4x4 in summer; driving off marked roads can void cover and is illegal in Iceland.
- Wrong fuel — misfuelling is entirely the renter's liability.
- Interior damage — burns, stains, tears, and contamination inside the vehicle are not covered by any damage waiver.
- Negligent, intoxicated, or intentional damage — any damage caused while impaired, or through recklessness or deliberate action, can void cover.
5. The published Damage Price List — how damage is priced
We do not invent repair costs. If new damage is found, it is photographed and priced per the published Damage Price List, capped at your chosen excess, and you receive an itemised Damage Liability Form together with the evidence that shows the damage.
Below is a per-item guide from the price list — the charge is capped at your chosen excess:
| Item | Cost range (ISK) |
|---|---|
| Small body panel repair (dent/scratch) | ISK 40,000–120,000 |
| Windscreen replacement | ISK 80,000–200,000 |
| Mirror replacement | ISK 30,000–80,000 |
| Tyre replacement (per tyre) | ISK 20,000–60,000 |
Actual charge = the published Damage Price List rate for the item, capped at your chosen excess, + a damage administration fee of ISK 25,500 per claim.
6. If you disagree with a charge
Disputes are rare when both parties have the same evidence. Here is the calm, step-by-step path if one arises.
- 1
Talk to us — we share the evidence
Email or call us. We share the pickup and return videos plus the itemised Damage Liability Form. If the damage was pre-existing, we correct the charge immediately. Most disagreements end here.
- 2
Request an independent Cabas assessment
Within 14 days of the damage notification, you can request an independent assessment through the Cabas claims system at an independent repair shop. The outcome of that assessment is binding on both parties.
- 3
Escalate to a regulatory or consumer body
If the dispute is still unresolved, you can escalate to any of these — free of charge:
Samgöngustofa (Icelandic Transport Authority)
Transport and vehicle-rental regulatory oversight in Iceland. samgongustofa.is
Kærunefnd vöru- og þjónustukaupa (Complaints Board for Goods and Services) / Neytendastofa
The Complaints Board rules on individual disputes about goods and services — including rental-car charges — free of charge. Neytendastofa supervises unfair contract terms and market practices. neytendastofa.is
European Consumer Centre (ECC) — for EU/EEA visitors
Free cross-border dispute assistance for EU and EEA residents dealing with businesses in Iceland. ECC-Net
Chargeback via your card provider
Your card issuer has a formal dispute process for charges you believe are incorrect. We will cooperate fully with any chargeback enquiry.
Your home-country consumer rights are unaffected. Nothing in these terms reduces the statutory rights you hold under your own national consumer protection law.
Governed by Icelandic law; Reykjavík venue.
Quick answers
Will I be charged for old scratches?
No. At pickup you sign a Vehicle Condition Report, and we record a timestamped 360° walkaround video and share it with you. If you spot damage that is not yet recorded, report it within 24 hours of pickup (email or WhatsApp) and it is logged as pre-existing. Pre-existing damage documented at pickup is not charged to you on return — the return inspection is compared against the pickup record, and we only bill for new damage.
What is the deposit — and how much will be held on my card?
There is no deposit. Your card is verified by a small pre-authorisation — a temporary block, not a charge — released per your card issuer's procedures, usually within a few working days. The exact hold amount is shown on your booking page before you confirm. If amounts are owed under the rental agreement (damage not covered by your waivers, excess amounts, fees, fines, tolls, missing fuel), the card on file may be charged with an itemised notification.
What if I disagree with a damage charge?
Contact us first. We will send you the itemised Damage Liability Form and the specific frame from your return video that shows the damage. Within 14 days of the damage notification you can request an independent assessment through the Cabas claims system at an independent repair shop — the outcome binds both parties. You can also escalate to the Icelandic consumer complaints board (Kærunefnd vöru- og þjónustukaupa), ECC-Net (if you are an EU resident), or initiate a chargeback with your card provider. Your home-country statutory consumer rights are unaffected by these terms.
Can I buy my excess down to zero?
Yes. Zero Excess brings your covered-damage excess to ISK 0 and already includes Gravel & Glass, Tyre, and Sand & Ash Protection. We confirm the day rate and cover level before you commit — no desk hard-sell.
What happens if I return the car after hours?
After-hours returns at our Keflavík base are available by arrangement — give us your flight time when you book and the handover details are confirmed in your booking. The car is inspected the next business day and remains at your risk until that inspection. Before you hand the car back, record a clear 360° return video yourself using your phone and send it to us — it documents the car's condition at handback. The pre-authorisation hold is released once we inspect and confirm a clean return.