Terms and Conditions

Definitions

• "CarFare" means the peer-to-peer car rental platform operated at carfare.is.
• "Host" means the owner or authorised operator who lists a vehicle on CarFare.
• "Guest" means the person who rents a vehicle through CarFare.
• "Confirmed booking" means a booking accepted by the Host and paid or authorised through CarFare.
• "Rental period" means the period when the Guest is responsible for the vehicle under the booking and handover agreement.
• "Self-risk" means the amount payable by the Guest for eligible damage before insurance or waiver protection applies.
• "SCDW" or "reduced self-risk" means a booking addon that reduces the self-risk only according to its stated terms and exclusions.

1. General Terms

• By registering, making a booking, listing a vehicle, accepting a booking, signing a rental agreement, or using CarFare, you agree to these Terms.
• CarFare is an intermediary marketplace connecting Hosts and Guests. CarFare does not own, inspect, or operate listed vehicles.
• A booking request is not binding until accepted by the Host and paid or authorised through CarFare.
• The Guest's right to use the vehicle begins only after handover is completed and the Guest's licence/identity have been verified.
• The Car Rental Agreement and Car Return Document form part of these Terms for each booking. If a booking-specific agreement conflicts with these Terms, the stricter safety, insurance, or liability rule applies unless CarFare states otherwise in writing.
• Users must not exchange contact or booking details to avoid CarFare fees or complete payment outside the platform.
• CarFare may review platform messages, documents, uploaded photos, timestamps, payment records, and booking data for support, trust and safety, dispute, fraud, and legal purposes.
• If vehicle damage must be assessed, the parties should use a verified repair shop. If they cannot agree within 48 hours, CarFare may appoint or suggest a repair shop for assessment.

2. Digital Acceptance and Paper Backup

• A user may accept these Terms and a booking-specific agreement electronically through checkbox acceptance, typed name, drawn signature, account login, payment confirmation, uploaded documents, and other website actions showing clear consent.
• CarFare may store the accepted terms version, timestamp, user ID, IP address, device/browser information, booking ID, uploaded licence/passport images, and signed PDF as evidence of acceptance.
• Failure to complete the handover or return process may affect insurance, SCDW/reduced self-risk, damage claims, payouts, and dispute outcomes.

3. Eligibility and Driving Licence

• Guests must be at least 20 years old, hold a valid driver's licence for the vehicle category, provide accurate information, and pass CarFare's verification checks.
• Hosts must be at least 20 years old and have legal authority to list and rent the vehicle.
• Guests must present a valid driver's licence and passport, national ID, or kennitala-based ID at pickup when requested.
• Guests who do not hold an EU/EEA driving licence or a licence written in the Roman alphabet must present an international driving permit or certified English translation where required.
• Only the primary Guest and additional drivers approved in the booking agreement may drive the vehicle.
• CarFare may reject, suspend, or cancel a user or booking where identity, licence, payment, safety, insurance, or eligibility cannot be verified.

4. Payments, Fees, Refunds, and Cancellations

• Full payment is collected or authorised when a rental request has been approved by the Host.
• Cancellation rules apply only to confirmed bookings. If a booking request is cancelled before Host acceptance, no rental cancellation fee applies.

Renter cancellation fees:

Host cancellation fees:

• If the Host cancels, fails to deliver the vehicle, or cannot lawfully provide the vehicle, the Guest receives a full refund.
• Refunds are issued to the original payment method and may take 1–5 banking days or longer.
• If a total or partial vehicle breakdown makes the vehicle unusable and is not caused by Guest conduct, the Guest may receive a refund for unused rental time, subject to CarFare review.
• CarFare pays Hosts after the rental period has been completed according to the payout schedule shown on the Host dashboard.
• The Guest is responsible for extra charges incurred during the rental period, including fines, tolls, parking, fuel/charging, excess kilometres, cleaning, lost keys/accessories, recovery, damage, and administration fees.
• For additional charges, CarFare may charge a 2,000 ISK administration fee plus 3% transaction fee where applicable.

5. Guest Obligations

• Return the vehicle and accessories in the same condition as received, except normal wear and tear.
• Use the vehicle only within the agreed rental period, location rules, kilometre allowance, road restrictions, and listing-specific terms.
• Pay all fines, tolls, parking charges, fuel/charging costs, excess kilometres, and traffic violations incurred during the rental period.
• Do not transport passengers or goods for payment, lend the vehicle, sublease it, tow with it, race it, use it for driver training, or use it for illegal activity.
• Return the vehicle at the agreed date, time, and location. A 15-minute grace period applies; after that, late return fees may apply.
• Late return fees: 15 min – 24 h late: 0.7% of daily rate per minute (including the initial 15 min); more than 24 h: the first 24-hour fee plus the daily rental price for each started day.
• Early returns do not entitle the Guest to a refund unless CarFare agrees otherwise in writing.
• Return the vehicle with the same fuel or battery level unless another policy is stated.
• Report collisions, damage, warning lights, theft, breakdowns, fines, or incidents to the Host and CarFare immediately.
• Complete the pickup and return documentation truthfully, including photos, odometer, fuel/battery, damage, and signatures.
• Do not smoke or carry pets unless expressly permitted in the listing.
• Do not drive on F-roads/highland roads unless expressly approved for the vehicle in the listing and booking agreement.
• Do not attempt river crossings unless expressly approved in writing for the vehicle and route.
• Do not drive on closed roads or off road without explicit approval.

6. Host Obligations

• Deliver the vehicle as agreed: clean, roadworthy, legally eligible, and equipped for the season and intended use.
• Ensure the vehicle has mandatory insurance and any additional insurance required for peer-to-peer/private rental use.
• Hold any required private rental operating licence through island.is before listing the vehicle.
• Ensure the vehicle has passed valid legal roadworthiness inspection and is mechanically safe.
• Only list vehicles you own or have legal authority to rent out.
• Provide accurate listing information, photos, pricing, pickup instructions, road restrictions, fuel/charging policy, smoking/pet policy, kilometre allowance, and insurance information.
• Verify the Guest's licence and identity before handover.
• Complete the pickup and return documentation with the Guest, including photos, odometer, fuel/battery, accessories, and damage notes.
• Report damage, missing items, late return, or disputes to CarFare within 24 hours after return.
• Do not charge the Guest for pre-existing damage, normal wear and tear, or issues caused by Host maintenance failures.
• Notify CarFare immediately if insurance, licence, ownership, inspection, registration, or vehicle condition changes.

7. Damages and Self-Risk

• The Guest is liable for eligible damage up to 330,000 ISK unless a different self-risk is shown for the booking.
• CarFare may charge, authorise, or hold an amount up to the self-risk while a damage dispute is investigated.
• Unlimited Guest liability may apply for intentional damage, gross negligence, DUI, racing, prohibited use, illegal use, unapproved drivers, unreported incidents, false information, or violation of these Terms, the booking agreement, insurance terms, or Icelandic law.
• Unlimited liability may also apply for tyres, underbody, water, river crossing damage, closed-road driving, off-road driving, prohibited F-road/highland driving, theft, vehicle parts theft, wind damage, sand, ash, pumice, gravel, and recovery costs where excluded by the policy or booking terms.
• Recovery costs are separate from self-risk unless expressly included.

8. SCDW / Reduced Self-Risk

• Guests may be offered SCDW or another reduced self-risk product at booking.
• SCDW applies only to eligible incidents and does not cover excluded or prohibited use.
• Each incident may carry a separate self-risk.

9. Taxes and Compliance

• CarFare operates as an intermediary and may invoice the Host for its commission before transferring the remaining payout.
• Hosts are responsible for their own tax, VAT, accounting, licensing, insurance, and regulatory obligations.
• Company-owned vehicles or professional rental operations may require additional licences, insurance, VAT treatment, and consumer-law compliance.

10. Disputes

• Users should first try to resolve booking issues in good faith through CarFare messaging and support.
• Damage, additional charge, or return disputes must be reported within 24 hours of return unless impossible due to emergency or delayed third-party notice.
• CarFare may make a platform decision using available evidence, including agreements, photos, timestamps, messages, payment records, repair assessments, invoices, fines, road records, and user history.
• CarFare's platform decision does not prevent either party from pursuing legal remedies under Icelandic law.

11. Privacy and Cookies

For the privacy policy, cookie policy, and data collection/deletion procedures, visit carfare.is/privacy.

12. Changes to These Terms

CarFare may update these Terms. Users will be notified of significant changes by email or website notice. Continued use after publication constitutes acceptance of the updated Terms for future bookings.

13. Disclaimer and Liability

CarFare is an intermediary between Host and Guest. CarFare will make reasonable efforts to support safe bookings and dispute handling, but cannot guarantee user conduct, vehicle condition, insurance response, weather, road conditions, or third-party services. To the maximum extent permitted by law, CarFare's total liability for a transaction is limited to the service fee collected on that transaction.

14. Governing Law

These Terms are governed by Icelandic law. Disputes are subject to the Icelandic courts unless mandatory law requires otherwise.