Frequently Asked Questions
Everything you need to know about renting with Carfare.
Getting Started
Carfare is a peer-to-peer car rental marketplace in Iceland. It connects people who want to rent a car with local car owners who list their vehicles. You book and pay through the platform — no phone calls or cash needed.
You can browse available cars without an account. You'll need to create a free account to send a booking request.
You need a verified email address, an approved driving licence on your profile, and to be at least 20 years old. At pickup, the host will verify your physical licence and ID.
Yes. You can create an account using your Google account — no password required. Your email is automatically verified through Google.
Booking
Find a car, pick your dates, and send a booking request with a short message to the host. The host has 24 hours to accept or decline. Once accepted and payment is confirmed, you're all set. You'll receive a confirmation email with pickup details.
You can book as far in advance as the host's calendar allows. Some hosts open their calendar months ahead; others only a few weeks. Check the listing for availability.
Yes. You can cancel from your bookings page. Cancellation fees depend on how far in advance you cancel: no fee if more than 48 hours before pickup; 25% fee 24–48 hours before; 40% fee 3–24 hours before; 100% fee less than 3 hours before or no-show. See our Cancellation Policy for full details.
If a host cancels a confirmed booking, you receive a full refund and the host pays a cancellation fee. Repeated host cancellations may result in their listing being removed.
Booking extensions are not currently available through the platform. Contact your host directly through the Carfare messaging system and, if they agree, submit a new booking request for the extra days.
Driving in Iceland
Only if it is expressly stated in the car listing and booking agreement that the vehicle is approved for F-roads. Driving a standard car on an F-road voids insurance and you become personally liable for any damage — including recovery costs, which can be very expensive. Always check the listing before heading into the highlands.
Never attempt a river crossing unless it is explicitly approved in writing for your specific vehicle and route. River crossings are extremely dangerous in Iceland and any damage or recovery costs will fall entirely on you.
Iceland has strict rules about which vehicles can use which roads. F-roads require a 4WD vehicle with high clearance. Many highland roads are closed from September to June. Check road.is (Vegagerðin) for real-time road conditions and closures before every trip.
A valid driving licence from your home country is required. If your licence is not in the Roman alphabet (e.g. Arabic, Chinese, Cyrillic script), you must also carry an International Driving Permit (IDP). EU/EEA licences are valid without an IDP.
Contact your host immediately via the Carfare messaging system. Also contact CarFare support at [email protected]. If the breakdown is due to normal wear and tear or a maintenance issue, the host is responsible for recovery and any unused rental days may be refunded.
Damage & Insurance
The standard self-risk is 330,000 ISK. This is the maximum amount you pay for eligible damage during the rental. Some listings may show a different self-risk amount — always check the booking page before confirming.
SCDW (Supplementary Collision Damage Waiver) is an optional add-on that reduces your self-risk. If offered on a listing, it will be shown on the booking page with its price and reduced self-risk amount. SCDW does not cover prohibited use, F-road damage, river crossing damage, or other excluded incidents.
You have unlimited personal liability for damage caused by prohibited driving (F-roads without approval, river crossings, off-road driving, closed roads), DUI, racing, intentional damage, tyre and underbody damage, water ingress, sand/ash/gravel damage, theft, and recovery costs where excluded by the insurance policy.
Stop safely, ensure everyone is safe, and call emergency services if needed (112). Report the incident to your host and CarFare immediately via the in-app messaging. Document everything with photos, including the odometer, damage, and road conditions. Do not admit fault or make payments without going through CarFare.
Hosting
Create an account, go to your profile and click 'List Your Car', fill in your car details, upload photos, set your pricing and availability, then submit for review. Our team approves listings before they go live.
Hosts receive payouts after the rental period has been completed. Payout timing is shown on the Host Dashboard. You'll need to enter your Kennitala and bank account number in your profile to receive payments.
Yes. Hosts must ensure their vehicle has mandatory insurance and any additional coverage required for peer-to-peer or private rental use. You may also need a private rental operating licence — check island.is for requirements.
Yes. You can decline any booking request before accepting it with no penalty. Once you've accepted a confirmed booking, cancellation fees apply. Always keep your calendar up to date to avoid double bookings.