Insurance Policy

Terms and Conditions

  1. Territorial and Temporal Scope of Insurance Coverage

1.1. This insurance policy is operative within the geographical confines of Iceland for the duration of the vehicle rental period.

1.2. Should there be an extension of the rental period arising from unforeseen and compelling circumstances beyond the lessee’s control, the policy’s validity extends to include one additional day.

  1. Extent of Insurance Protection

2.1. Insurance coverage, as delineated in the rental agreement, shall encompass the stipulated protections.

2.2. This policy extends to include mandatory third-party liability insurance for bodily harm and property damage caused by the insured vehicle, alongside personal accident insurance for the operator, in adherence to Icelandic statutory requirements.

2.3. Optional Insurance Coverages:

2.3.1. Collision Damage Waiver (CDW): The CDW provision mitigates the renter’s financial responsibility for vehicular damage, limiting it to the excess amount specified in the rental agreement, excluding circumstances of theft, burglary, or conditions outlined in sections 3.2.1 – 3.2.13. Absent of CDW, the renter is fully accountable for all damage costs, up to the vehicle’s total valuation.

2.3.2. Super Collision Damage Waiver (SCDW): As a supplement to CDW, SCDW further diminishes the obligatory excess payment. The conditions of exception align with those under CDW.

2.3.3. Theft Protection (TP): covers the vehicle for theft and is included in all rentals. (does not count towards personal belongings) 

2.3.4. Gravel Protection (GP): covers the vehicle against damages to the paint on bumpers, hood and doors by thrown gravel from a passing vehicle (Excluding the windshield). 

  1. Limitations of Liability for Infringements of Safety Protocols or Insured Duties

3.1. Responsibilities of the Insured:

3.1.1. The vehicle operator must possess a valid driving license for the relevant vehicle category and have had a drivers License for a minimum of 1 year.

3.1.2. Upon departure from the vehicle, it must be secured, and keys must be kept from unauthorized access.

3.1.3. Items within the vehicle should be stowed securely to prevent damage.

3.1.4. The vehicle must not be employed for competitive speed trials or racing.

3.1.5. For damages beyond the CDW/SCDW scope, the insured bears full fiscal liability as per the rental company’s pricing or cost assessment.

3.1.6. The lessee or operator is obliged to furnish a comprehensive account and endorse the damage documentation to invoke coverage efficacy. A refusal or failure to comply may render the damage waivers void, compelling the renter to compensate up to the vehicle’s full market value.

3.2. Exclusions Under CDW/SCDW:

The following circumstances are exempt from coverage:

3.2.1. Intentional damage or damage due to gross negligence on the part of the driver 

3.2.2. 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.  

3.2.3. Damage due to race or test driving 

3.2.4. Damages resulting from driving in places where vehicle traffic is banned, such as paths, tracks, banks of snow, ice, unabridged rivers or streams, beaches, places only accessible at low tide, or other trackless areas 

3.2.5. Damage due to natural forces, war, revolution, civil unrest, or riots. 

3.2.6. Wind damages caused by nature (sand and ash storms),  

3.2.7. Holes burned into seats, carpets, or mats 

3.2.8. Damage to vehicles caused by driving where prohibited by law. 

3.2.9. Damage caused to the tires, chassis and undercarriage of a vehicle and water damage caused by driving in rivers, lakes, or the sea. These can be caused by driving recklessly on rough roads, damaging the vehicle´s transmission or other parts that are in or attached to the chassis, by scraping the bottom of the car on ridges left by road graders, on stones lodged in the road surface or riverbanks or on the shoulder of the road. The same applies to damage occurring when stones are thrown up, striking the underside of the vehicle during driving. 

3.2.10. Pumping wrong fuel in the tank 

3.2.11. Damage caused to the roof of the vehicle by irresponsible actions such as climbing on top of the car, putting heavy objects on the roof or any other negligent behavior that is not a direct result of an accident or force majeure event. 

3.2.13. Damage to engine or other mechanical parts due to lack of or incorrect use of; lubricants, oil, coolant or fuel.

3.2.14. Damage to or loss of accessories, such as the car keys, WIFI hotspot, GPS unit, kitchen utensils, sleeping bags, chairs, tables, roof box, or rooftent. 


  1. Insurer Information

4.1. The insurance underwriter is Vátryggingafélag Íslands ehf, with the organizational identifier 690689-2009, located at Armuli 3, 108 Reykjavik, Iceland.

4.2. Konvin Car Rental functions solely as an intermediary for insurance services.

  1. Resolution of Disputes

In instances of dissatisfaction with the insurer’s response, the insured is entitled to consult the Insurance Ombudsman or the Consumer Agency of Iceland at Borgartún 29, 105 Reykjavík (Neytendastofa) for arbitration.