Terms & conditions

The rental agreement is between the customer named on the booking (the “renter”) and Barev ehf. (trading as Ring Road Cars), kennitala 620914-0100, VSK-nr. 141747, registered at Bogatröð 1, 262 Reykjanesbær, Iceland, operating from Keflavík, Iceland (“Ring Road Cars”, “we”, “us”). All communication can be directed to info@ringroadcars.is or +354 779 9499.

To rent a vehicle from us you must:

• Be at least 20 years old for economy, compact, and most SUV categories.
• Be at least 23 years old for large 4x4 vehicles and 9-seat vans.
• Hold a full, valid driving licence that has been held for at least one year at the time of pickup.
• If your licence is in the Latin alphabet, it is accepted on its own. If it uses a different script (Arabic, Cyrillic, Chinese, etc.), also bring an International Driving Permit (IDP) where your country issues one. Some countries — including mainland China — do not issue IDPs; in that case bring a certified (notarised) translationof your licence together with the original. If you're unsure, check with us before you travel.
• Present the physical licenceat pickup — digital or photographed copies are not accepted. If you arrive without a valid physical licence and we cannot release the vehicle, the booking is treated as a no-show under Section 11 (first rental day charged), not a full forfeiture.

Additional drivers must meet the same requirements and must be registered on the booking before the vehicle is collected. If anyone who does not meet these requirements — or who is not registered on the booking — drives the vehicle, cover can be void for that period and you may be liable for the full, uncapped cost of any damage, not just the excess.

Bookings are confirmed when we issue a written confirmation by email. Accepted card types are confirmed before booking. All prices include Icelandic VAT at the standard rate (currently 24%). Prices are shown in ISK — with indicative EUR/USD/CNY conversions for convenience — and you are always charged in ISK.

Your booking confirmation shows the complete breakdown of all known charges — rental rate, road-use charge, any add-ons, and the pre-authorisation hold amount — before you confirm. Conditional later charges are listed in these terms and require evidence.

We use a card pre-authorisation hold equal to your chosen excess (own-risk) amount — not a cash deposit. The hold is a temporary block on funds; it does not leave your account and earns no income for us.

• The exact hold amount is shown on your booking page before you confirm. It equals the excess tier you have chosen.
• On a clean return, the hold is released — typically within a few working days, depending on your card provider.
• If you have purchased Zero Excess, the covered-damage excess is ISK 0. Exact card authorisation rules are confirmed at booking.

By completing your booking you authorise Ring Road Cars and our payment provider to charge the card used for booking for the amounts set out in these terms — covered damage up to your chosen excess, fuel, fines, tolls, and any extras you use — each evidenced to you as described here. This is a stored-credential authorisation you may withdraw in writing before any charge is taken.

Every Ring Road Cars rental includes the following as standard — no extras required:

• Collision Damage Waiver (CDW) — standard excess/own-risk level (see Section 6).
• Unlimited mileage— drive as far as Iceland's roads take you.
• Winter tyres in season — fitted as required by Icelandic regulations and conditions.
• 24/7 emergency contact number — provided at pickup; assistance depends on your location, weather, road access and supplier availability.
• Pickup walkaround record — a timestamped 360° video whenever the handover is staffed and operationally possible, otherwise a documented condition record; a copy is shared with you.

Our pricing separates rental, selected cover, extras, the road-use charge, card hold, exclusions, and possible later charges before payment. The 2026 road-use charge (kílómetragjald) is shown as its own line — see Section 8.

Every vehicle is covered by mandatory third-party liability insurance in accordance with Icelandic law. Standard CDW is included, capping your personal liability for accidental exterior damage to the vehicle at one excess (own-risk) amount. For exterior collision damage, you are billed only for damage the return walkaround shows that the pickup walkaround did not.

How billing works:at pickup and at return we record a timestamped 360° walkaround video of the vehicle whenever the handover is staffed and operationally possible; for after-hours or key-box handovers, a documented condition record (timestamped photos or your own video — see Section 14) applies instead. You receive a copy. We bill only for damage shown in the return record that was not present in the pickup record. Pre-existing damage documented at pickup is not charged to you. Any charge is supported by (a) the return record showing the damage and (b) the documented actual repair invoice. For damage covered by your chosen protection level, the charge is capped at your chosen excess. Damage falling under the exclusions listed below in this section and in Section 10 — for example river crossings, off-road or F-road driving, or wrong fuel — is not capped and is charged at the actual documented repair cost.

Optional upgrades — Plus (Super CDW / SCDW), Gravel & Glass Protection (GP), and Sand & Ash Protection (SAAP, ISK 1,850/day) — are available to reduce or eliminate your excess. Theft and attempted theft are covered in the base cover, up to your excess (keys left in the car and gross negligence are excluded). Full details on our Insurance page and How damage works.

Regardless of the protection level chosen, the following are excluded unless specifically covered or approved: gravel and windscreen chips (without GP), sand and ash (without SAAP), river crossings, underbody damage, F-road or off-road driving, wrong fuel, interior damage, and damage caused by intoxication, negligence, or deliberate action.

Excess tiers (confirmed at booking before payment):

• Essential — CDW included, excess ISK 350,000
• Plus (Super CDW / SCDW) — excess ISK 120,000–150,000 (by car size)
• Zero Excess — covered-damage excess is ISK 0; card authorisation rules confirmed at booking

We operate a full-to-full fuel policy by default: you receive the vehicle with a full tank and return it full. If you return with less than a full tank, we charge the cost of the missing fuel at current pump prices plus a refuelling service fee of ISK 5,000.

Prepaid fuelis also available: pay for a full tank up front — priced from your vehicle's tank capacity at the current pump price, shown at booking — and return the car at any level with no refuelling needed. We don't refund fuel left in the tank. Full details: see our Fees page.

Unlimited kilometres are included in the rental price. Since 1 January 2026, Iceland requires every car rental to account for the statutory Road Tax (kílómetragjald) on behalf of the government. The official rental-car daily fee is ISK 1,390 per started rental day. Our current estimate shows ISK 1,550 per started rental day, which includes an ISK 160 processing estimate. It is shown as a separate line in your invoice before payment. The exact wording and tax treatment of this line are confirmed on your booking invoice. Full details: Driving in Iceland — costs section.

The vehicle may only be driven on public roads open to the vehicle category rented. The following are strictly prohibited:

• Driving under the influence of alcohol, drugs, or any substance that impairs driving. Iceland's legal limit is very low — 0.02% blood alcohol (0.2‰), and driving at or above 0.05% is a criminal offence. In practice, do not drink and drive at all.
• Off-road driving of any kind. Driving off marked roads or tracks is illegal in Iceland and causes irreversible damage to protected natural land. The damage is not covered — you are liable for the actual documented repair cost — and it is a criminal offence carrying separate police fines.
• F-roads and highland tracks may only be driven with a suitable 4x4 vehicle, in summer when the roads are officially open. Check road.is before entering any F-road.
• River crossings and ford driving — not permitted under any circumstances, not covered by any protection level, and illegal for rental vehicles.
• Smoking or vaping inside the vehicle.
• Driving outside Iceland without prior written agreement from us.
• Subletting or lending the vehicle to any person not registered as a driver.

At pickup and at return we record a timestamped 360° walkaround video of the vehicle whenever the handover is staffed and operationally possible; for after-hours or key-box handovers, a documented condition record (timestamped photos or your own return video — see Section 14) applies instead. You receive a copy of both records. We inspect at return against the pickup record. Visible exterior damage is billed only when it is present in the return record but absent in the pickup record. Other charges — interior cleaning, missing fuel, traffic fines, lost equipment, or at-fault mechanical or roadside costs — are billed only on their own suitable evidence, such as an itemised invoice, an official notice, or an inspection record. Pre-existing damage documented at pickup is not charged to you.

If damage is found, we will contact you within two working days of return with a written assessment and the itemised actual repair invoice before any charge is processed, and we take any agreed charge within 14 days of that assessment. We charge only our actual documented cost — a real repair invoice, not a one-sided estimate — and only to the extent we have not already been compensated by our own insurer. For covered (CDW-class) damage the charge is capped at your chosen excess: we do not charge above that cap, add loss-of-use fees without documented evidence, or add flat administration fees as profit. Damage caused by a use your cover excludes— river or water crossings, off-road or F-road driving, a 2WD on an F-road, or wrong fuel — is the renter's full liability and is not capped at the excess.

If you disagree with a charge, see the dispute process on our How damage works page. You may also escalate to the Icelandic consumer complaints board (Kærunefnd vöru- og þjónustukaupa) or your card provider. Your statutory consumer rights are unaffected.

Our standard cancellation policy for refundable bookings:

• Free cancellation up to 48 hours before your scheduled pickup: cancel any time up to 48 hours before pickup and receive a full refund. No questions asked.
• Cancellation within 48 hours of pickup: the first rental day is charged as a proportionate short-notice fee; the remainder is refunded.
• No-show (failure to collect without notice): the first rental day is charged as a proportionate short-notice fee.
• Date or vehicle changes: free of charge, subject to vehicle availability at the time of the change. Contact us as early as possible.
• Non-refundable rates: some booking channels offer a discounted non-refundable rate. Where this applies, it is clearly stated at the time of booking and in your confirmation email. Non-refundable bookings are charged in full at booking and are not refundable except where required by Icelandic consumer law.

To cancel or change your booking, contact us at info@ringroadcars.is or +354 779 9499 with your booking reference. Refunds are processed to the original payment method within a few working days.

Iceland's environment is extraordinary — and occasionally disruptive. Volcanic eruptions, sudden road closures (published at road.is), and severe weather can affect your travel plans through no fault of either party.

If we cannot provide the vehicle because our operation is directly affected by a force-majeure event, you will receive a full refund of any amounts paid.

If your travel is affected (e.g. a road closure forces an extended rental, or you cannot return on time due to a closed route):

• Contact us as soon as you know — we will work with you on a fair resolution. Extensions due to documented force-majeure events are handled on a case-by-case basis and we will not apply late-return fees where the delay was genuinely outside your control.
• Check road.is for official road-closure status before each driving day, especially in volcanic zones and mountain passes.
• Travel insurance (your own policy) may cover costs arising from eruptions, closures, or weather delays — check your policy before your trip.

We will always aim for a fair, non-punitive outcome in genuine force-majeure situations. When in doubt, call us first.

A 24/7 emergency contact number is provided at pickup; assistance depends on your location, weather and road access. In the event of a breakdown, contact us first before arranging any third-party repair — unauthorised repairs will not be reimbursed. If the vehicle cannot be repaired within a reasonable time and you are stranded, we will work to provide a replacement or alternative arrangement.

Who pays: if the breakdown is due to a mechanical fault or normal wear, recovery and any replacement are at our cost. If it results from misuse (wrong fuel, prohibited or F-roads, lost keys, and similar), we recover the actual documented call-out and recovery cost — see the Fees page — and we tell you the amount with evidence before any charge.

The agreed return time is shown in your booking confirmation. A grace period of up to 60 minutes applies without charge. Returns more than 60 minutes late are charged one further rental day at the daily rate, plus an ISK 10,000 administration fee (see Fees). If you know you will be late, contact us as soon as possible — we will do our best to accommodate you without penalty where we can.

After-hours returns: after-hours key-box drop-off at our Keflavík base is available by arrangement, confirmed with your booking. Before leaving the vehicle, record a 360° return video using your phone and send it to us — this freezes your liability at the moment of handback. The card pre-authorisation hold is released once we inspect the vehicle and confirm a clean return.

You are responsible for any fines (speeding, parking, traffic-camera), tolls (including road tunnels such as Vaðlaheiði), and parking-app charges incurred during your rental period.

Where a notice is issued to the vehicle's registered keeper (us), we will forward it to you promptly so you can pay directly — many Icelandic fines carry a 25% reduction for prompt payment, and we want you to have that option. If we are required to settle an unpaid notice, we recover the actual fine or toll amount plus a handling fee of ISK 3,000 to cover the administrative cost of receiving, recording, and forwarding the notice. We notify you in writing with the itemised amount and the original notice as evidence before any charge is taken from the card used for your booking, held by our PCI-compliant payment provider.

For the main possible charges — excessive cleaning, fuel shortfall, late return, lost equipment, wrong fuel, towing, and more — see our Fees & charges page. Exact amounts are confirmed in your rental agreement.

• Non-smoking: all vehicles are non-smoking (and no vaping). If there is evidence of smoking or vaping (smell, ash, or burns), we recover the actual documented cost of the required deep-clean / ozone treatment — typically around ISK 45,000, with evidence — not a flat penalty.
• Additional drivers: any additional driver must be registered on the booking before pickup. An unregistered driver is not covered by our insurance, and their driving can void waivers — meaning you may be liable for the full, uncapped cost of any damage during that period, not just the excess.
• Fuel:check the fuel cap or dashboard badge and fill with the correct fuel. Wrong-fuel damage is not covered by any protection level and is entirely the renter's liability.
• Off-road, F-road, and river crossings: driving off public roads, onto closed tracks, or through watercourses is not permitted under any circumstances. It is illegal in Iceland, can void cover, and may result in criminal liability and full repair costs.

Ring Road Cars is not liable for loss of personal belongings left in the vehicle, indirect or consequential losses, or delays caused by breakdown or circumstances outside our control. Our liability for direct losses is limited to the amounts you have paid us for the rental.

Nothing in this section reduces your mandatory statutory rights under Icelandic consumer protection law or under the consumer law of your home country.

We are a data controller under Regulation (EU) 2016/679 (GDPR) and the Icelandic Personal Data Protection Act (Lög um persónuvernd og vinnslu persónuupplýsinga). We collect and process your personal data solely to fulfil your rental booking, communicate with you, and meet our legal obligations. We do not sell your data to third parties.

Icelandic data protection is supervised by Persónuvernd. A full privacy notice is published on this site. To exercise your rights under GDPR, contact us at info@ringroadcars.is.

Handover video — data protection

The 360° pickup and return videos we record contain visual data (your vehicle, the immediate surroundings, and potentially bystanders). We process this data on two lawful bases under GDPR Article 6(1):

• Performance of contract (Art. 6(1)(b)): the video is the agreed evidence mechanism for documenting the vehicle condition at pickup and return. Without it, neither party has a reliable record of pre-existing damage.
• Legitimate interest (Art. 6(1)(f)): we have a legitimate interest in retaining video evidence to resolve damage disputes accurately and fairly.

Retention: handover videos are retained for approximately 3 years from the rental end date, aligned with the standard Icelandic limitation period for civil claims arising from rental agreements. After that period, videos are securely deleted.

Your rights: you have the right to request access to your own handover videos, to correct inaccurate data, and (where no overriding legal basis applies) to request erasure. Contact us at info@ringroadcars.is to exercise these rights. You also have the right to lodge a complaint with Persónuvernd.

Vehicle telematics (GPS)

Our vehicles are fitted with a GPS telematics device. It records data such as location, speed, harsh-impact / collision events, distance travelled, and the device identifier. We process this on the basis of our legitimate interest (Art. 6(1)(f)) to:

• prevent theft and recover a stolen vehicle;
• support insurance and damage claims;
• detect unauthorised or prohibited use (for example off-road or F-road driving); and
• keep our fleet safe and well-maintained.

It is not continuous surveillance for marketing, and we do not sell this data. Telematics data is retained only as long as needed for these purposes (and any related claim), then deleted; our telematics provider acts as our processor under a data-processing agreement. Where telematics evidence supports a charge, the charge is still the actual documented cost on a fault basis — not an automatic penalty. You have the same access, rectification, and erasure rights as above.

These terms are governed by the laws of Iceland. Any dispute that cannot be resolved between the parties shall be referred to the District Court of Reykjavík (Héraðsdómur Reykjavíkur) as the court of first instance, unless mandatory consumer-protection rules in your home country require otherwise.

For renters resident in EU member states, EEA countries, or the United Kingdom, any mandatory consumer-protection rules applicable in your country of habitual residence remain fully in force and override any conflicting provision in these terms.

Any separate arrangement relating to debt collection for renters not resident in the EEA is a back-office collections matter and does not reduce your statutory consumer rights under these terms or under Icelandic law.

Consumer disputes (alternative dispute resolution).As required by Iceland's Act no. 81/2019 on out-of-court dispute resolution for consumers, you may refer a dispute to the Complaints Board for Goods and Services (Kærunefnd vöru- og þjónustukaupa). If we do not formally object to a Board ruling within 30 days, it becomes enforceable against us. You may also contact Neytendastofa(the Consumer Agency, which supervises unfair contract terms), use the European Consumer Centre (ECC-Net) if you live in the EEA, or your card provider's chargeback process. These routes are in addition to — and do not reduce — your statutory rights.