Insurance

25) The lease sum/rental fee includes mandatory vehicle insurance, including liability insurance and accident insurance for the driver and passengers.

26) Third-party liability insurance will consist of the amount stipulated by Icelandic law at any given time.

27) The lessee can purchase separate accident (CDW) insurance. This policy will specify the amount deductible in each instance of loss.

28) Each own-risk only applies to one incident. In instances of more damage that obviously did not occur at one and the same time, each own-risk CDW applies to only one incident.

29) This Collision Damage Waiver - CDW does not cover:
a) Intentional damage or damage due to gross negligence on the part of the driver.
b) 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 safe manner.
c) Damage due to race or test driving.
d) Damage due to war, revolution, civil unrest, or riots.
e) Damage done by animals.
f) Holes burned into seats, carpets, or mats.
g) Damage affecting only wheels, tires, suspension, batteries, glass (other than windows), radios, or loss by theft of parts of the vehicle and damage resulting from this.
h) Damage caused by driving on rough roads to the vehicles transmission, drive, other parts that are in or attached to the chassis; damage to the chassis resulting from scraping the bottom on rough roads as a result of ridges being left by the road graders; stones lodged in the road surface 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.
i) Damages resulting from driving in places where vehicle traffic is banned, such as paths, tracks, banks of snow, ice, un bridged rivers or streams, beaches, places only accessible at low tide, or other trackless areas.
j) Damages caused by sand, gravel, ash, pumice, or other kinds of earth material being blown onto the vehicle, only SADW (Sand and Ash Damage Waiver) covers such damage – please refer to General provisions.
k) If the vehicle is transported by sea, no compensation will be paid for damage caused by sea spray/seawater.
l) Damages to passenger cars and/or 2wd vehicles caused by driving on roads marked with an F in public maps as well as driving on Kjölur (Road 35) or Kaldidalur (road 550)
m) Lessors loss because of the vehicle being stolen.
n) Water damage to the vehicle.

In other instances, reference is made to the general provinsions for accident/all-risks insurance.