FAQ

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Booking and Payments

  • Renter must be at least 23 years old.

  • Driver must have obtained drivers licence at least 12 months before date of rental.

  • Passport, driving licence and valid credit card are required.
  • The listed rental price includes: unlimited mileage, free GPS and 4G WIFI box, discount for fuel all around Iceland, 24% VAT tax, and an extra insurance, including Collision Damage Waiver.
  • Credit card payment is the best option to pay for the booking online.

  • Payment might be also done with debit card, if the online payment is available on it.

  • Credit card must be presented upon arrival. The pre-authorisation will be done for security reasons, the amount depends on the chosen insurance and its self-risk liability (ISK 350.000 for CDW, aprox. EUR 2.800 and ISK 150.000 for SCDW, aprox. EUR 1.200.).

  • Visa, MasterCard, American Express, Union Pay, Discovery, Diners Club and JCB are accepted.
  • Change, modify or cancel your reservation by sending an e-mail to magic@magiccarrental.is and we will sort it out.

  • Cancellation policy:

    • Free cancellation and change of booking 24H prior to your pickup time.
    • No refund: cancellations within 24H to your booking or no-shows.
  • Minimal rental period is 72h - 3 days.
  • If the vehicle you selected during the reservation is unavailable during pick up, we will supply you with a similar model. We always guarantee the category, but not brand and/or model.

Pickups and Returns

  • Our office is located in Keflavik, at Framnesvegur 19C. The office hours are from 8 am to 8 pm.

  • KEF arrivals: After exiting the terminal, a Magic Associate will greet you with a sign listing your name and Magic Car Rental logo.

  • We will shuttle you and your luggage to our rental office where you will pick up your car. The drive is 5 minutes.

  • If you cannot locate the Magic Associate upon arrival, please call +354 77 13 555
  • Yes, make sure you provided us with right address and time details. E-mail change requests to magic@magiccarrental.is
  • No, we do not provide delivery to Reykjavik and area.

  • Return the car to our office at Framnesvegur 19C, Keflavik.

  • We will drive you to departure terminal after quick checkout. The drive is 5 minutes.
  • The driver's valid passport (same applies to additional drivers).

  • The driver's valid driving licence (same applies to additional drivers), held for at least one year. Note that your international driving license is valid only with your normal driving licence.

  • A valid credit/debit card. You must also present a credit/debit card for those charges, which have not been prepaid (such as extras, refueling charge, excess due in the event of damage to or loss of the rented vehicle). We accept all major credit cards. Please note we hold the deposit on the card amounting self-risk in chosen insurance.
  • You should return the car with the same level of fuel as stated in the agreement. Otherwise, you will be charged for missing fuel at the end of the rental. Our rates do not include fuel. Refueling charge applies.
  • Unfortunately, no refunds can be given for unused or partly used rental period.

During the Rental Period

  • Please, call us anytime at +354 77 13 555. We will provide you with assistance.
  • Contact first the emergency if needed. Emergency number in Iceland: 112

  • Contact police if needed.

  • Contact us +354 77 13 555

  • In each of our cars you can find the Accident Statement form. Fill it out with its guidelines.
  • F-roads are Highland roads, marked on most maps e.g. F-35 (Kjölur) or F-26 (Sprengisandur).

  • You can only drive on them with 4x4 (4 wheel drive) cars. Driving (2WD) cars on these roads is strictly forbidden under penalty of fines and the cancellation of insurance. More information in our Terms and Conditions.
  • Driving in Iceland, especially in wintertime is very difficult. It is always good to monitor road conditions while driving across Iceland, as the weather changes very fast and unexpectedly. Some of the roads are full of snow or covered with ice and some of them are even closed.

  • For these informations go to road.is; safetravel.is. You can also get an information at every petrol station.
  • Parking tickets and any traffic violations are the responsibility of the renter who must pay them before returning the vehicle. Charges or fines received by us after the rental will be charged directly to the renter. A local administration fee applies: this will be charged in addition to the fines.

Insurance

    • Please note, the pre-authorisation on the credit card will be done for security reasons, the amount depends on the chosen insurance and its self-risk liability.
  • CDW – with Collision Damage Waiver the renter is liable for damages with the amount ISK 350.000 (approx. EUR 2.800, USD 1.450). Special offer: This insurance is included now for free! Please note, if you have insurance with your credit card, often is required to decline any insurance from car rental. Check your insurance policy and let us know before.
  • SCDW – Super Collision Damage Waiver lowers the liability of the renter from the standard amount of collision damage waiver to ISK 150.000 (approx. EUR 1.200, USD 1.450).

  • GP – Gravel Protection covers damages to the body and headlights of the vehicle when gravel or rocks get thrown onto the vehicle by another car. The liability of renter is lowered to 0. The excess for the damaged windshield is reduced to 20.000 ISK ( approx. EUR 120, USD 150) This insurance is highly recommended in Iceland. These damages (f.e. stone chips in the windscreen) are very common.

  • SAAP – Sand and Ash Protection covers damages to the car paint, windows, lights, plastics, chromes and wheels, which is caused by sand, ash, pumice or other earth material being blown onto the vehicle. In high winds and dry weather, the ash from the volcanoes and sand in the south coast can cause huge damage to the cars. These damages can be very expensive. The self-risk in each case of these damages is lowered to ISK 150.000 (approx. EUR 1.200, USD 1.450)

  • GOLD PACKAGE.
    • CDW self-risk 150.000 ISK (approx. EUR 1.200, USD 1.450).
    • GP self-risk 0ISK / 20.000 ISK to the windshield
    • SAAP - The liability is lowered to 100.000.

Terms and Conditions

  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. Renter’s valid credit card is required. A credit card imprint will be taken at the start of all rentals for security reasons, even when a voucher covers the cost of rental. This credit card imprint may be used to pay all extra charges, including extra insurance, parking fines, damages, tank re-fill or any cost due to the use of the rented vehicle.

  3. Renter has received the mentioned vehicle and its accessories in proper and safe condition.

  4. The renter/driver shall be at least 23 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.

  5. The renter shall be responsible for the rented car from the time it leaves Magic Car Rental office until Magic Car Rental signs for the car as returned.

  6. The renter shall return the car as stated below:

    1. With all accessories (including tires, tools, documents and other items) in the same condition they were in when received, with the exception of normal wear and tear due to normal use. The renter agrees that missing or damaged accessories will be charged at cost price to the credit card, which the renter provided at the beginning of the rental.

    2. At the predetermined time and date as stated on the rental agreement or sooner if Magic Car Rental demands it.

    3. To the Magic Car Rental premises, unless otherwise agreed in writing. Failing to return the car directly to the Magic Car Rental venue is subject to a drop-off charge as per Magic Car Rental’s current pricelist. The renter agrees that the drop-off charge will be charged from the credit card, which the renter provided 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, which the renter provided at the beginning of the rental. Service charge for refueling is determined by Magic Car Rental’s current pricelist.

    5. Sufficiently clean, not excessively dirty. The interior should no be excessively dirty. The exterior should not be excessively dirty, i.e. not covered in mud, tar or dirt. A car returned excessively dirty is subject to a cleanup fee according to the Magic Car Rental’s current pricelist. The renter agrees that the cleanup fee will be charged from the credit card, which the renter provided at the beginning of the rental.

    6. Smoking is strictly prohibited in the car. Evidence of smoking in the car will result in a cleaning fee according to the Magic Car Rental’s current pricelist. The renter agrees that the fee will be charged from the credit card, which the renter provided at the beginning of the rental.

  7. If the renter fails to return the car at the agreed return time pursuant to this rental agreement or fails to inform Magic Car Rental of his/her intention to extend the rental, Magic 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 lease is dependent on the approval of Magic Car Rental. If the renter returns the vehicle one hour or more after the expiry of the rental agreement, Magic Car Rental is permitted to charge the renter for up to a whole day’s rental fee according to this agreement. For each day thereafter Magic Car Rental may collect fees according to its pricelist. The renter agrees that any such charge may be charged from the credit card, which the renter provided at the beginning of the rental.

  8. The vehicle shall be handled and driven with due care. Only those registered as drivers in this agreement 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 instance the renter is fully liable for the vehicle, for damage it may sustain, damage it may cause others, items or vehicles, and obligates to pay such damage in full. The cost of damages occurring under aforementioned circumstances may be charged from the credit card, which the renter provided at the beginning of the rental.

  9. 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 account of:

    1. Driving where prohibited by law, which is off beaten tracks, in unmarked paths or tracks, on beaches or other sandy areas, in shoals of water or any other trackless areas.

    2. Driving in or across rivers or any kind of water course.

    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 Icelandic law and/or the provisions of this rental agreement.

    6. Driving vehicles that are not four-wheel drive (4x4) on roads that are F-marked on official maps. The same applies to Kjalvegur (Road No. 35) through Kaldidalur (Road No. 550) and Jökulhálsleið (Road No. 570). Violation of this article is subject to a fine of ISK 350.000 by Magic Car Rental in addition to the fine charged by the police. The abovementioned provisions on fines do not affect the obligations of the renter to pay Magic Car Rental compensation for loss or damage. 4x4 jeeps may be driven on the above roads.The renter agrees that the cost of damages as well as incurring overhead caused by any of the above actions may be charged from the credit card provided by the renter at the beginning of the rental.

  10. In the instance of a collision or accident, the renter shall immediately notify police as well as Magic 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 Magic Car Rental, regardless of any collision damage waivers (CDW or SCDW) assigned to the rental.

  11. The number of kilometers (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 Magic Car Rental, without delay if the odometer is out of order or stops functioning during the rental period.

  12. The renter is responsible for any fines or charges that result from his/ hers use of the car. This includes but is not limited to; parking-, traffic violations, speeding and speed camera fines, parking and toll charges. A handling fee of ISK 6.000 is charged by Magic Car Rental for any official inquiry the company must respond to, or any fine Magic Car Rental must pay due to the use of the renter/driver of the rented car. The renter agrees that this fee and the fine/charge may be charged from the credit card provided by the renter at the beginning of the rental.

  13. The renter/driver may not:

    1. Drive the car where prohibited by law, i.e. off beaten tracks or marked roads, in unmarked paths or tracks, on 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 ISK 350.000 by Magic 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 Kjölur (road 35), Kaldidalur (road 550) routes, unless the car is a 4 wheel drive or all wheel drive, intended and accepted for such use by Magic Car Rental. Failing to comply with this article is subject to a fine of amount stated in Magic Car Rental’s pricelist at any given time. Mentioned provision on fines does not affect the renter’s liability regarding damage. The renter agrees that this fine 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.

    4. Drive in or across water or rivers of any kind, without assuming all responsibility for the car.

    5. Drive in banks of snow, or ice, on glaciers, or on frozen lakes.

    6. Smoke in the car. Evidence of smoking in the car, such as stubs, ashes or odour, will result in a cleanup fee of minimum ISK 15.000. The renter agrees that this fee may be charged from the credit card provided by the renter at the beginning of the rental.

    7. Take the car anywhere outside of Iceland.

  14. Magic Car Rental is not responsible for renter’s property that he/she or any other party leaves in or transports with the vehicle.

  15. The renter agrees to pay Magic Car Rental upon request:

    1. A deposit equivalent to the expected cost of hiring the car.

    2. Any and all expenses accruing to Magic Car Rental in transporting the car back to its premises, in the event that it has been left unattended and without supervision, without regard to the condition of the vehicle, roads, or weather.

    3. Expenses that may arise from the renter’s use of the car.

  16. The renter is not authorized to have repairs or changes made to the car or its accessories, or to put the vehicle up as any kind of collateral or guarantee, without the prior, written consent of Magic Car Rental.

  17. The renter is not permitted to use the vehicle for transportation of passengers for payment, lend it to others, or sublet it.
  1. Magic Car Rental is responsible for doing its utmost to guarantee the delivery of the vehicle at the pre-determined time and in compliance with all requirements and to supply a clean car with a full tank of fuel. If Magic Car Rental cannot for some reason supply the car ordered at the correct time, a car of similar or higher class will be offered as a replacement. If the vehicle is not presented to the renter within 3 hours from the agreed time, the rental charges for the day will be dropped. If Magic Car Rental fails to supply a full tank of fuel, then the renter may return the car with the same fuel level as supplied and stated on the rental inspection form.

  2. Magic Car Rental guarantees that the car meets the set demands, and that all official registration standards are met.

  3. If the car malfunctions owing to normal wear and tear, or for other reasons for which the renter cannot be held responsible, Magic Car Rental shall deliver the renter with a comparable vehicle as quickly as possible at a location decided by Magic Car Rental, or arrange to have repairs done without delay by Magic Car Rental service partner. In a case of such malfunction, Magic Car Rental does not pay any kind of compensation, neither for accommodation nor for other reasons. A refund will be made for a lost rental day if the renter is unable to use the rented car for a period over 24 hours.

  4. Magic Car Rental must inform the renter of the contents of this rental agreement, particularly of the obligations that the renter undertakes by signing it.

  5. Magic Car Rental shall, to the extent possible, inform a foreign renter on Icelandic traffic regulations, traffic signs, and regulations on the prohibition of off-road driving. Furthermore Magic Car Rental shall especially point out the risks posed by animals on the roads, on gravel roads and icy roads.

  6. If Magic Car Rental wants to limit use of the vehicle with as regards to its equipment and/or road conditions, this shall be done in writing upon signing of this rental agreement.

  7. Magic Car Rental guarantees to maintain valid liability insurance for its operations.

  8. Magic Car Rental cannot be held responsible for damage or disappearance on items stowed or transported in or on the car by the renter or any other party.

  1. The rental fee includes mandatory vehicle insurance, including liability insurance and accident insurance for the driver and the owner.

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

  3. 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 which 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 self-risk stipulated on the front of this agreement may be charged from the credit card provided at the beginning of the rental.

  4. This insurance (CDW/SCDW) does not cover:

    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 substances, or 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 war, revolution, civil unrest, or riots.

    5. Damages done by animals.

    6. Holes burned into seats, carpets, or mats.

    7. Damages 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.

    8. Damages caused by driving on rough roads, e.g. 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 scraping bottom on rough roads. The same applies to damages occurring when stones are thrown up, striking the underside of the car when being driven. The underside of the car is not insured.

    9. Damages resulting from driving in places where driving is banned, such as paths, tracks, banks of snow, ice, unbridged rivers or streams, beaches, places only accessible at low tide, or other trackless areas. The car is not insured when crossing rivers or driving in water of any kind.

    10. Damages to the car caused by driving on mountain roads and roads marked F on a map or a road sign, including the Kjölur (road 35), Kaldidalur (road 550). (This does not extend to 4wd and all wheel drive cars accepted by Magic Car Rental for use on mountain roads. Approved cars are insured on all marked roads and tracks).

    11. Water damages to the car, its electrical system, accessories or engine.

    12. Damages caused by sand, gravel, ash, pumice, or other kind of earth material being blown onto the vehicle.

    13. Damages caused by wind blowing up the door while opening it.

    14. No compensation will be paid for damage caused by sea spray/ seawater, if the vehicle is transported by sea.

    15. Reference is made to the general conditions for accident insurance (Icelandic: kaskótrygging) as set by SJOVA insurance company at www.sjova.is.

    16. Cost for picking up a damaged vehicle which is not returned to the pre-determined drop off location. The retrieval fee is ISK 250 per km outside of Reykjavik City or a minimum of ISK 25.000.

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

  6. The renter may purchase special waivers for damages or loss caused by gravel (GP) or theft (TP) from Magic Car Rental. These waivers lower the self- risk of the renter in each case of damages caused by gravel, or loss due to theft, to zero.

  7. In addition, the renter can purchase Ash and Sand Protection (SAAP), which covers damage to the cars paint, windows, lights, plastic, chromes and wheels, which is caused by sand, gravel, ash, pumice or other earth material being blown onto the vehicle. Self-risk in each case of damage is lowered to ISK 90.000.

  8. No insurance covers damages to the underside of the car, to the tires and wheels of the car, or damages caused by water when driving over rivers, pools of water or in lakes. The same applies if the renter puts fuel, water, oil or other solvents in a wrong tank on the car. The self-risk fees with CDW or SCDW do not extend to any of the above damages. The renter bears all risk and all cost of such damages.
  1. The renter confirms with his or her signature on this rental agreement, the terms and conditions and inspection form that he or she has received the car and its accessories in good condition.

  2. This rental agreement with it's terms and conditions shall remain in the car during the rental period.

  3. Any changes to the rental are subject to availability and must be done in writing.

  4. Magic 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 cost arising from such measures.

  5. Smoking is prohibited in all Magic Car Rental cars. Evidence of smoking in the car will result in a cleaning fee of ISK 15.000 minimum.

  6. By providing his/her credit card details to Magic Car Rental, the renter agrees with his/her signature on this rental agreement that Magic 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. This includes:

    1. Missing or damaged accessories.

    2. Drop-off charges.

    3. Fuel charges.

    4. Clean-up charges.

    5. Late return and related costs.

    6. Damages to the car by others than renter/driver.

    7. Damages to the car by the renter/driver.

    8. Fines and handling fees.

    9. Fines for driving where prohibited by law.

    10. Fines for driving standard cars on mountain roads.

    11. Fines for smoking in the car.

    12. Self-risk for CDW or SCDW.

    13. Damages not covered by the car's insurance.

    14. Broken windshield

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

  1. Cancellation may be done via e-mail magic@magiccarrental.is . Cancellation policy:

    1. Cancel more than 30 days prior to the rental - full refund (100%)

    2. Cancel between 7-29 days prior to the rental - 80% refund of the rental amount.

    3. Cancel a week prior to the rental - 70% refund of the rental amount.

    4. In case of a no-show or last day cancellation - charge 100% of the rental amount.

  2. Local value added tax (VAT) 24% is included in all prices.

  3. 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 lease agreement, they will be heard before Magic Car Rental's legal venue.

  4. Any disputes between the parties to this rental agreement can be submitted to the active Arbitration committee of the Icelandic Consumers Association and the Icelandic Travel Industry Association.