1. The renter agrees to the provisions of this contract and has received a copy of the rental agreement and the terms and conditions.
        2. The renter has received the mentioned vehicle and its accessories in proper and safe condition.
        3. The renter/driver shall be at least 18 years old and shall have held a valid driver’s license for at least one year before renting the vehicle and must present the license on signing the agreement. The renter/driver shall abide by Icelandic law and regulations when driving.
        4. The renter shall be responsible for the rented car from the time it leaves the Lagoon Car Rental office until the Lagoon Car Rental signs for the car as returned.
        5. The renter shall return the car as stated below:
          1. With all accessories (including tires, keys, tools, documents and other items) in the same condition that they were in when received. The renter agrees that missing or damaged accessories will be charged at cost price to the credit card provided by the renter at the beginning of the rental.
          2. At the predetermined time and date as stated on the rental agreement or sooner if Lagoon Car Rental requests it.
          3. To a Lagoon Car Rental premises, unless otherwise agreed upon in writing. Failing to return the car directly to a Lagoon Car Rental venue is subject to a drop-off charge as per Lagoon Car Rental´s current price list. The renter agrees that the drop-off charge will be charged from the credit card provided by the renter at the beginning of the rental.
          4. With the fuel tank in the same level as stated on the inspection form. The renter agrees that missing fuel will be charged to the credit card provided by the renter at the beginning of the rental should the renter fail to return the car with the fuel tank at the same level. The missing fuel will be charged according to Lagoon’s current price list.
          5. The interior of the vehicle should not be excessively dirty. Trash and personal belongings shall be removed from the vehicle. A car returned excessively dirty on the inside is subject to a clean-up fee according to the Lagoon Car Rental´s current price list. The renter agrees that the clean-up fee will be charged from the credit card provided by the renter at the beginning of the rental. The vehicle may be returned excessively dirty on the outside and no cleaning fee applies to the outside of the vehicle unless something has been glued to the outside of the vehicle.
          6. All cars are non-smoking. Evidence of smoking in the car will result in a cleaning fee according to Lagoon Car Rental’s current price list.
        6. If the renter fails to return the car at the agreed return time pursuant to this rental agreement or fails to inform Lagoon Car Rental of his/her intention to extend the rental, Lagoon Car Rental or the police are permitted to repossess the vehicle without further notice and at the expense of the renter. An extension of the rental is dependent on the approval of Lagoon Car Rental. If the renter returns the vehicle one hour or more after the expiry of the rental agreement, Lagoon Car Rental is permitted to charge the renter for up to a whole day´s rental fee according to their current price list. For each day thereafter, Lagoon Car Rental may continue to collect fees according to its price list. The renter agrees that any such charge may be charged from the credit card provided by the renter at the beginning of the rental.
        7. The vehicle shall be handled and driven with due care. Only those registered as drivers in this agreement and those 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 case the renter is fully liable for the vehicle, and this liability includes damage it may sustain, damage it may cause others, items or vehicles, and the renter is obligated to pay such damage in full. The cost of damages occurring under aforementioned circumstances may be charged from the credit card provided by the renter at the beginning of the rental.
        8. The renter has objective liability for damages resulting from the use of the car for which no compensation will be paid by the car insurance. This includes damages to the car and/or injury to passengers on the account of the following:
          1. Driving where prohibited by law, that is, off beaten tracks or marked roads, unmarked paths or tracks, beaches or other sandy areas, and shoals of water or any other trackless areas.
          2. Driving in or across rivers or any kind of watercourse.
          3. Intentional acts, gross negligence or total carelessness of the driver.
          4. Operating the car under the influence of controlled or illegal substances.
          5. Use of the car that is in breach of Icelandic law and/or the provisions of this rental agreement.
          6. Driving vehicles that are not four-wheel drive (4×4) on roads that are F-marked on official maps. The same applies to Kjalvegur (Road No. 35), Kaldidalur (Road No. 550) and Jökulhálsleið (Road No. 570).
          7. 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 the incurred overhead caused by any of the aforementioned actions may be charged from the credit card provided by the renter at the beginning of the rental.

        9. In the instance of a collision or accident, the renter shall immediately notify the police as well as Lagoon 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 damages to the car to Lagoon Car Rental, regardless of any collision damage waivers (CDW) or super collision damage waivers (SCDW) assigned to the rental.
        10. 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 Lagoon Car Rental without delay if the odometer is out of order or stops functioning during the rental period.
        11. The renter is responsible for any fines or charges that result from his/ her use of the car. This includes but is not limited to the following: parking, traffic violations, speeding and speed camera fines and parking and toll charges. A handling fee according to the price list is charged by Lagoon Car Rental for any official inquiry that the company must respond to or any fine or toll that Lagoon Car Rental must pay due to the use of the of the rented car by the renter/driver. The renter agrees that this handling fee and the fine/toll/charge may be charged from the credit card provided by the renter at the beginning of the rental.
        12. The renter/driver may not do the following:
          1. Drive the car where prohibited by law, i.e. closed roads as specified by the Icelandic road Administration (published at www.road.is), off beaten tracks or marked roads, unmarked paths or tracks, 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 €2,000 by Lagoon 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.
          2. Drive the car on mountain or highland roads, or roads marked “F” on a map or a road sign, including Kjalvegur (Road No. 35), Kaldidalur (Road No. 550), Jökulhálsleið (Road No. 570) and Sprengisandur (road 26), unless the car is a four-wheel drive (4×4) or an all-wheel drive intended and accepted for such use by Lagoon Car Rental. Failure to comply with this article is subject to a fine of €2,000 by Lagoon 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.
          3. Operate the car under the influence of controlled or illegal substances. Failure to comply with this article is subject to a fine of €2,000 by Lagoon Car Rental in addition to the fine charged by the police. Furthermore, the renter has no right to the further use of the vehicle.
          4. Drive on banks of snow, on ice, on glaciers or on frozen lakes.
          5. Smoke in the car. Evidence of smoking in the car, such as stubs, ashes or odour, will result in a clean-up fee according to Lagoon Car Rental’s current price list. The renter agrees that this fee may be charged from the credit card provided by the renter at the beginning of the rental.
          6. Take the car anywhere outside of Iceland.
          7. Allow an unregistered driver to drive the car. Violation of this article is subject to a fine of €2,000 by Lagoon Car Rental.
        13. The renter is not authorized to make repairs or changes to the car or its accessories or put the vehicle up as any kind of collateral or guarantee without the prior, written consent of Lagoon Car Rental.
        14. The renter is not permitted to use the vehicle for the transportation of passengers for payment, to lend it to others, or to sublet it.
        15. Lagoon Car rental guarantees that the vehicle meets set demands and that all official standards are met.
        16. Lagoon guarantees to do its utmost to make the vehicle available at the agreed hour and in compliance with all the requirements and to supply the vehicle in a clean condition and with a full tank of fuel. If Lagoon Car Rental cannot for some reason supply the vehicle reserved at the correct time, a car of similar or higher class will be offered as a replacement. If the vehicle is presented to the renter more than three hours after the agreed rental hour, the rent for said day shall be dropped. If the vehicle is not supplied with a full tank of fuel, the renter may return the car with the same fuel level as supplied and stated on the rental condition report.
        17. If the car malfunctions because of normal wear and tear, or for other reasons for which the renter cannot be held responsible, Lagoon Car Rental shall deliver the renter with a comparable vehicle as soon as possible at a location decided upon by Lagoon Car Rental, or arrange to have repairs made as soon as possible by a Lagoon Car Rental service partner. In the case of such malfunction, Lagoon Car Rental will not pay any kind of compensation, neither for accommodation or for other reasons. The aforementioned situation does not affect the payment of the rent or other payments that the renter is obligated to pay according to this rental agreement. A refund will be made for a lost rental day if the renter is unable to use the rented car for a period of over 24 hours.
        18. Lagoon Car Rental shall inform the renter of the contents of this agreement, particularly the obligations that the Renter undertakes by signing it.
        19. Lagoon Car Rental shall, to the extent possible, inform a foreign renter about Icelandic traffic regulations, traffic signs and rules regarding the prohibition of off-road driving as well as the hazards caused by gravel roads, the presence of animals on the roads and icy roads.
        20. If Lagoon Car Rental wishes to limit the use of the vehicle with the respect to its structure, equipment and/or the conditions of the roads, in respects other than those stated in this rental agreement, this shall be done in writing upon the signing of this rental agreement.
        21. Lagoon Car Rental guarantees the maintenance of a valid liability insurance for its operations.
        22. The rental fee includes the mandatory vehicle insurance, including liability insurance and accident insurance as well as accident insurance for the driver.
        23. Third-party liability insurance will consist of the amount stipulated by Icelandic law at any given time.
        24. In case of damage to the car, the renter is fully responsible. The renter can purchase a separate accident insurance against damages to the car, a collision damage waiver (CDW), which sets the amount that 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 a super collision damage waiver (SCDW), 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 deductible stipulated on the front of this agreement may be charged from the credit card provided by the renter at the beginning of the rental.
        25. This accident insurance (CDW/SCDW) does not cover the following:
          1. Intentional damages or damages due to gross negligence on the part of the driver.
          2. Damages resulting from the driver being under the influence of controlled or illegal substance or being in any other way incapable of driving the vehicle in a safe manner.
          3. Damages caused by a race or test driving.
          4. Damages caused by a driver not registered on the rental agreement.
          5. Damages caused by war, revolution, civil unrest or riots.
          6. Damages done by animals.
          7. Holes burned into seats, carpets or mats.
          8. Damages affecting only wheels, tires, suspension, batteries, glass (other than windows) and radios.
          9. Loss by theft of parts of the vehicle and damage resulting from this.
          10. Damages caused by driving on rough roads, e.g. damage to the transmission, the drive or drive shaft and other parts in or attached to the chassis. Damages to the chassis, or any part of the car, resulting from the vehicle scraping the bottom on rough roads. The same applies to damages occurring when stones are thrown up, striking the underside of the car. The underside of the car is not insured.
          11. Damages resulting from driving in places where driving is banned, such as paths, tracks, banks of snow, ice, unbridged rivers or streams, beaches or other sandy areas, places accessible at low tide, or other trackless areas.
          12. Damages to the car when used on mountain roads and roads marked “F” on map or a road sign, including Kjalvegur (Road No. 35), Kaldidalur (Road No. 550), Jökulhálsleið (Road No. 570) and Sprengisandur (road 26). This does not extend to 4WD and all-wheel drive cars accepted by Lagoon Car Rental for use on mountain roads – approved cars are insured on all marked roads and tracks.
          13. Damages sustained when crossing a river or driving in water of any kind. River crossing must be done with extreme care.
          14. Water damages to the car, its electrical system, accessories or engine.
          15. Damages caused by wind blowing against the doors of the vehicle, forcing them to open excessively, causing damages to the doors, door hinges and/or other parts of the vehicle.
          16. Damages caused by sand, gravel, ash, pumice or other kind of earth material being blown onto the vehicle.
          17. Damages caused to the top of the vehicle from standing, sitting, mounting or climbing on the car or from any other action that does not fall under the regular use of the car.
          18. Damages caused and cost-related from when fuel, oil, AdBlue, water or other liquids are put into a wrong tank in the vehicle.
          19. s. No compensation will be paid for damages caused by sea spray/ seawater, if the vehicle is transported by sea.
          20. Cost for picking up a damaged vehicle that is not returned to the predetermined drop-off location. The recovery fee will be charged according to Lagoon Car Rental’s price list.
          21. Reference is made to the general conditions for accident insurance (Icelandic: Kaskótrygging) as set by the Tryggingamiðstöðin insurance company at www.TM.is

          The renter agrees that any damages not covered by the insurances of the car may be charged from the credit card provided by the renter at the beginning of the rental.

        26. The renter may purchase one or more the following additional standalone insurance products that cover the renter for various types of damages:
          1. Gravel protection (GP) – Provides coverage with a deductible of €98 for windscreen damages caused by gravel.
          2. Sand and ash protection (SAAP) – Provides coverage with a deductible of €690 for any damages caused due to sand, dust, ash, pumice or other earth materials being blown onto the vehicle during high winds. Only the SAAP provides coverage for these damages.
          3. Super collision damages waiver (SCDW) – Lowers the deductible of the standard collision damage waiver from €3,490 to €690.
          4. Theft protection (TP) – Covers the cost of the vehicle in case it is stolen with a deductible of €0. Please note that this does not cover personal items that may be stolen.
          5. Tire protection (TIP) – Tire protection fully covers the cost of tire repair or replacement in case of damage to the tires. Please note that this does not cover transport of the vehicle to a tire shop or serviced roadside assistance in case of tire damage

        27. The renter may purchase one of the following bundled insurance products that cover the renter for various types of damages:
          1. Bronze package – The Bronze package includes the GP, SCDW and TP with the conditions as they are listed for each standalone insurance product in section 26.
          2. Silver package – The Silver package includes the GP, SAAP, SCDW, TP and TIP with the conditions as they are listed for each standalone insurance product in section 26.
          3. Gold package – The Gold Package includes the GP, SAAP, SCDW, TP and TIP with the conditions as they are listed for each standalone insurance product in section 26, with the exception that the deductible is €0 instead of the standard of €690 for the SAAP and SCDW or the €98 for the GP.

        28. The renter, with his or her signature on this rental agreement, the terms and conditions and inspection form, confirms that he or she has received the car and its accessories in good condition.
        29. This rental agreement with its terms and conditions shall remain in the car during the rental period.
        30. Any changes to the rental agreement are subject to availability and must be done in writing. Early returns are not refundable.
        31. Lagoon Car Rental is authorized to repossess the car at their discretion and without notice if the car 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 car appears to be abandoned. The renter will pay for the cost arising from such measures.
        32. Smoking is prohibited in all Lagoon Car Rental cars. Evidence of smoking in the car will result in the levy of a cleaning fee according to Lagoon Car Rental’s price list.
        33. Additions and amendments to the conditions and provisions of this rental agreement shall be made in writing and confirmed in writing by a Lagoon Car Rental representative.
        34. Lagoon Car Rental is not liable for the damage or disappearance of items that the renter or any other party keeps or transports in or on the vehicle.
        35. Lagoon Car Rental is not liable for items left in the rented vehicle after return. If an item is found, the renter of the vehicle can request to have the item shipped back to him/her. The renter must pay the cost of shipping to their location as well as a handling fee according to the valid price list of Lagoon Car Rental at the time. The renter agrees that the total shipping and handling cost may be charged from the credit card provided by the renter at the beginning of the rental.
        36. By providing his/her credit card details to Lagoon Car Rental, the renter agrees with his/her signature on this rental agreement that Lagoon Car Rental is authorized to charge the card for the rental fee and any other fees, charges or fines that may arise from this rental agreement or the renters use of the car in accordance with the price list, terms & conditions or amounts stipulated on the front and back of this rental agreement. This includes the following:
          1. Missing or damaged accessories.
          2. Drop-off charges.
          3. Fuel charges.
          4. Cleaning charges.
          5. Late return fees and related costs.
          6. Damages to the car by people other than renter/driver.
          7. Damages to the car by the renter/driver.
          8. Towing and recovery fees.
          9. Fines and handling fees.
          10. Fines for driving where prohibited by law.
          11. Fines for driving standard cars on mountain roads.
          12. Fines resulting from unregistered drivers’ use of the vehicle.
          13. Fines for smoking in the car.
          14. Fines for driving under the influence of alcohol or illegal substances.
          15. Damages not covered by the car’s insurance.
          16. Broken windshield.
          17. Deductible for CDW, SCDW, GP and SAAP.
          18. Any other expenses that may arise from the renter’s use of the car

          Lagoon Car Rental retains this right for a period of up to six months after the rental ends.

        37. The cancellation policy for bookings made directly with Lagoon Car Rental through the company’s website or by other means varies based on the payment method chosen when the booking is made. The cancellations policy is as follows:
          1. PAY NOW – FREE CANCELLATION: If you cancel your booking 24 hours or more before pick-up, you get a 100% refund of what you have paid. If you do not show up or cancel within 24 hours of the scheduled pick-up, the payment is non-refundable.
          2. PAY AT PICK UP – 10% DEPOSIT: The 10% deposit is always non-refundable
          3. PAY NOW – 5% DISCOUNT: If you chose this payment method, the payment is non-refundable.

          For information regarding the cancellation policy for bookings with Lagoon Car Rental made indirectly through our partners (travel or booking agencies), please contact the relevant partner.

        38. Lagoon Car Rental has the right to cancel bookings if one or more of the following conditions applies:
          1. Booking is made less than 24 hours before scheduled pick-up time. If the availability has been confirmed by phone call or email before the reservation is made through the website, Lagoon Car Rental will not in any case cancel a booking that is made due to the fact the booking is made less than 24 hours before pick-up.
          2. In case of any system error or input error that results in vehicles being displayed as available when they are unavailable.
          3. In case of any system error or input error that results in a wrong price being quoted for a vehicle.
          4. The driver of the vehicle is not able to provide a valid credit card and is unwilling or unable to buy the required insurance coverage in lieu of the missing valid credit card.
          5. The driver of the vehicle is not able to provide a valid driver’s license. No refund is issued in such cases.
          6. The group of people travelling in the vehicle is larger than the registered capacity of the vehicle. No refund is issued in such cases.

        39. This rental agreement and any agreements made on the basis of 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 damages based on liability outside this agreement. If legal disputes arise concerning this rental agreement, they will be heard before Lagoon Car Rental´s legal venue, the district court of Reykjanes, Iceland.
        40. Any disputes between the parties of this rental agreement can be submitted to the active Arbitration Committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.