Useful Information

Bookings and Payments

  • expand_moreIs it possible to modify my reservation after it is confirmed?
    After you book your rental car in Iceland you can always modify your booking in accordance with our acceptance terms and conditions. If the modification changes the total price of your booking, you will be refunded/charged for the difference. However, if you have opted for the “Book now and receive a 3% discount” payment method no refunds will be made, as per our cancellation policy. Send us an email and our customer service representative will assist you. However, we cannot guarantee changes within 24 hours before the scheduled pickup.
  • expand_moreHow will I know that my reservation for my rental car in Iceland has been confirmed?
    At the end of the reservation process you will receive a “Reservation Confirmation” page with the reservation number indicated. You will also receive a confirmation email containing the details of your reservation within 10 minutes of the booking. You should print and keep these for your record. If you do not receive a conformation mail, please send us an email.
  • expand_moreDo I get a full refund if I cancel my reservation after it is confirmed?
    Our cancellation policy varies according to the payment method:
    • PAY NOW – FREE CANCELLATION: If you cancel your booking 24 hours or more before pickup, you get a 100% refund of what you have paid. If you do not show up, or cancel within 24 hours of the scheduled pickup, the payment is non-refundable.
    • PAY NOW – 3% DISCOUNT: If you chose this payment method the payment is non-refundable.
    • PAY AT PICK UP – 10% DEPOSIT: The 10% deposit is always non-refundable.
  • expand_moreDo you guarantee that I will receive the vehicle I booked?
    When you book your rental car in Iceland with Lagoon Car Rental, we try our very best to provide exactly the vehicle type you booked. You are always assigned to an available vehicle within the vehicle group you chose, and not similar models. However, sometimes unanticipated circumstances can occur, such as damages or repairs that prevent us from providing the vehicle reserved. In such an eventuality, we guarantee the same category of vehicle or a higher category.
  • expand_moreIs there a minimum / maximum age for renting a vehicle in Iceland?
    To rent a car in Iceland from Lagoon Car Rental, the driver needs to be at least 18 years old. The driver should also be in possession of a valid driving license and should have held it for at least one year. There is no maximum age if you have a valid driving license.
  • expand_moreWhat documents are necessary to rent a car in Iceland?
    • A valid driving license issued in your country of residence and held for at least one year is required. We accept all foreign drivers’ licenses. However, we require the license to be in English, with Latin characters or accompanied by a valid translation, since we need to be able to understand the information on the license. Please note that your international driving license is valid only if accompanied by your regular driving license, which must be valid.
    • Your passport or an ID card will also be required for car rentals, according to Icelandic law.
    • Your valid credit card with an expiry date after the due drop-off date. You must also present a credit card for those charges which have not been prepaid (such as extras, refueling charge, service fees, parking and speeding tickets and excess due in the event of damage to or loss of the rented vehicle). We accept all major credit cards. Please note that we do not take any pre-authorization or require our customers to leave a deposit while they have the rental car in Iceland.
  • expand_moreIs there a minimum duration for my car rental?
    There is no minimum rental period. However, when renting a car, you always pay for the first 48 hours.
  • expand_moreWhat is included in the rental rate?
    The rental rate always includes:
    • Unlimited mileage on your rental vehicle in Iceland
    • 24% Value added tax (VAT)
    • Collision damage waiver (CDW). Please note that the customer has the option of declining CDW at pick-up
    • Third party liability insurance
    • Accident insurance
  • expand_morePayment
    The quoted total rate will include any extras you select during the booking process, as well as tax. Credit cards are charged the same day the booking is made. We accept all major credit cards (Visa, MasterCard, American Express, Diners Club). If you want to pay via bank transfer, please contact us by email.
  • expand_moreMy driving license has been stolen; can I present a theft declaration instead?
    Under certain restricted conditions, the declaration of theft or loss of the license may be accepted if the issue date is sufficiently recent in terms of local legislation and if the local regulations are complied with. Please contact customer support for more details.
  • expand_moreDo you take pre-authorization/deposit on my credit card or a deposit for my rental car in Iceland?
    We require all customers to present a valid credit card at pickup. However, we do not take any pre-authorization/deposit or require our customers to leave a deposit while they have the rental car in Iceland. If the renter is not able to present a credit card, we require the customer to buy our silver insurance package.
  • expand_moreDo all your rental cars in Iceland come with studded tires?
    Yes, during winter all our rental cars in Iceland come with studded tires. Our top priority is customer safety, and studded tires are the safest way to travel the icy roads of Iceland during winter.

During the rental period

  • expand_moreCan I modify my booking after I receive my car for rental in Iceland?
    Any changes to dates during the rental are possible at any time after you have received your rental car, in accordance with our acceptance terms and conditions. However, adding insurance during the car rental is not allowed. All extensions and vehicle changes are subject to availability and additional charge. To change the booking, you must contact us via email, telephone or come in person to our nearest rental location. Please note that we do not issue any refund if the rental period is shortened within 24 hours of the scheduled pickup or if you opted for the Pay Now - 3% discount payment option.
  • expand_moreWhat can I do if there is a problem with the car?
    We offer 24/7 breakdown assistance. Customers can call us at any time of the day or night on any day of the week if they have any problems with the vehicle. Lagoon Car Rental has service partners all around the country who are ready to help if something breaks down or needs to be replaced. If you have a more severe problem with the car, we will replace it with a new vehicle as soon as possible. If the problem is due to underlying problems that were not the customer’s fault we cover all towing fees. If the customer is responsible for the problems of the car, they will bear all towing fees. The towing fees are as follows: Kilometer fee for every kilometer driven is €2,19. Starting fee is €99 on weekdays between 07:00 and 17:00. Starting fee after hours between 17:00 and 07:00 is €249. The starting fee on weekends and public holidays is €249.
  • expand_moreWhat happens if I damage my rental car in Iceland?
    If the car is damaged during the rental, you should contact our customer support immediately. By contacting us and sending pictures of the damages, we can speed up the process of getting an estimated repair cost. If a car comes in with a damage that was not noted in the initial condition report, we charge an estimated amount for the repairs. If you have insurance with us, you will be charged the self-risk. Please keep in mind that repair costs in Iceland may be considerably higher than what you may encounter in your own country. We try to keep our damage procedure as transparent as possible. After the customer has been charged for the damage, photos are taken of the damages and an initial damage report is filed. The vehicle is taken to a repair shop to receive a CABAS examination, an internationally acknowledged damage estimation system, to assess the cost of repair. If the initial deposit, or the self-risk, is higher than the damage estimates you will be refunded the difference. If the extent of the damage is such that the car is inoperable, we provide towing services. The cost of picking up a damaged vehicle which is not returned to the predetermined drop-off location is the following: Kilometer fee for every kilometer driven is €2,19. Starting fee is €99 on weekdays between 07:00 and 17:00. Starting fee after hours between 17:00 and 07:00 is €249. The starting fee on weekends and public holidays is €249. Damage claims can take up to 30 days to be processed, depending on how severe the damages are. Any enquiry regarding the status of the damage assessment and resolution procedure, missing documents or general questions regarding a damage case are to be sent to our claims department at claims@lagooncarrental.is
  • expand_moreFines: Parking tickets, traffic violations during your rental in Iceland
    Any parking tickets and traffic violations are the responsibility of the renter, who must pay the applicable fines before returning the vehicle. Congestion charges or fines received by us after the rental will be charged directly to the renter, including an administrative fee and a surcharge for late payment, if any.

Insurance

  • expand_moreWhat kinds of insurance are included in the rental fee?
    A standard collision damage waiver is always included in the rental fee. It covers only collision damage and carries a deductible of €3.490. We offer many alternatives that include reduced deductibles and more comprehensive coverage.
  • expand_moreI have my own insurance – can I decline Lagoon’s insurance and use my own?
    Yes. If you need to decline our CDW, please inform our representative when you pick up the car. Please also note the procedure, in the unfortunate event of anything happening to the car during the rental – you pay the full amount for the repair costs at the drop-off, and then make a claim to your insurance provider. Lagoon will be happy to provide any relevant documents for the insurance claim. We also recommend that you contact your insurance provider prior to arriving in Iceland and ask them exactly what is covered by your insurance, since many insurers do not cover all incidents and risks.
  • expand_moreWhat insurance can I add to my reservation?
    Gold package includes:
    • Gravel protection – Deductible / Self-risk is €0
    • Super collision damage waiver - Deductible / Self-risk is €0
    • Sand and ash protection – Deductible / Self-risk is €0
    • Tire protection - Deductible / Self-risk is €0
    • Theft protection – Deductible / Self-risk is €0
    Price: €48 per day Silver package includes:
    • Gravel protection – Deductible / Self-risk is €98
    • Super collision damage waiver – Deductible / Self-risk is €690
    • Sand and ash protection – Deductible / Self-risk is €690
    • Tire protection – Deductible / Self-risk is €0
    • Theft protection – Deductible / Self-risk is€0
    Price: €37 per day Bronze package includes
    • Gravel protection – Deductible / Self-risk is €98
    • Super collision damage waiver – Deductible / Self-risk is €690
    • Theft protection – Deductible / Self-risk is€0
    Price: €27 per day   Super collision damage waiver (SCDW) The super CDW lowers the deductible of the standard collision damage waiver from €3.490 to €690. Price: €14 per day   Sand and ash protection (SAAP) The sand and ash protection lowers the deductible to €690 for any damages due to sand, dust, ash, pumice, or other earth materials being blown onto the vehicle during high winds. These damages cost between €3.000 to €20.000, as they can cause severe damage to the paint, windows, lights, plastics and chrome parts of the rental car. Price: €9 per day   Theft protection (TP) The Theft Protection 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. Price: €5 per day   Gravel protection (GP) Gravel protection limits the deductible for damages to the windscreen caused by gravel to 98€. This is the most common type of damage here in Iceland. Price: €11 per day   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. Price: €7 per day

Pickups and Returns

  • expand_moreCan I modify my booking when I receive my rental car in Iceland?
    Any changes to the rental are possible at the time of pickup in accordance with our acceptance terms and conditions. Adding or declining insurance or extras during pickup is always possible. All extensions and vehicle changes are subject to availability and additional charges. Please note that we do not issue any refund if the rental period is shortened within 24 hours of the scheduled pickup or if you opted for the Pay Now - 3% discount payment option.
  • expand_moreDo you have your car rental outlet in Reykjavik?
    If you are picking up your rental vehicle in Reykjavik, then you can always come directly to our office at Sundagarðar 8, 104 Reykjavik. We charge a location charge of €19 for all vehicle pickups at our Reykjavik office. That fee is already included in the price quoted on our website when Reykjavik is selected as a pickup location.
  • expand_moreDo you offer a shuttle service?
    We offer shuttle services both in Reykjavik and Keflavik within the city limits. If you provide us with your hotel or apartment details, we can pick you up and bring you to our office. The price for the shuttle services is as follows:
    • For our Keflavik car rental office:
      • Shuttle service between our Keflavik car rental office and Keflavik International airport is always free
      • Shuttle service from a hotel or address in Keflavik and to our office in Keflavik is €19
      • Shuttle service from our office in Keflavik and to a hotel or address in Keflavik is €19
    • For our Reykjavik car rental office:
      • Shuttle service from a hotel or address in Reykjavik and to our office in Reykjavik is €29
      • Shuttle service from our office in Reykjavik and to a hotel or address in Reykjavik is €19
    If you would like to change the delivery place or time, then just send us an email or give us a call.
  • expand_moreOne of the drivers will not be present at the pickup of the vehicle – can they still be registered as a driver on the rental agreement?
    Yes, if you send us a copy of their driver’s license before you arrive, we can add them as a driver on the rental agreement in their absence.
  • expand_moreWhen I get to Keflavik international airport, how will I collect my car?
    If you are picking up your rental car at Keflavik Airport, Iceland, a Lagoon Car Rental representative will be waiting in the arrival hall for you, holding a placard with the Lagoon Car Rental logo. Our employee is ready to help you with your luggage and drive you to our rental office where you collect your car. The drive to the rental office from the arrival hall at the Keflavik International airport takes 5 minutes. The shuttle service between our Keflavik car rental office and Keflavik Airport is free of charge. If you can’t locate our employee in the arrival hall, please call us at 00354-515-2220.
  • expand_moreDo I need to return the rental car with a full tank?
    Vehicles are supplied with a full tank of fuel and you should return the vehicle with a full tank. Otherwise, you will be charged for missing fuel at the end of the rental. Our rates do not include fuel. Refueling charge applies.