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.

 

 2.    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. 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 down to 150.000 ISK. The conditions of exception align with those under CDW. 

2.3.3. Theft Protection (TP): Incorporated within CDW/SCDW without additional charge, TP limits the renter’s liability for vehicle theft or burglary to the excess amount designated in the rental contract. It does not insure personal property within the vehicle against theft or burglary. TP exclusions necessitate renter accountability up to the vehicle’s full value and mandate theft or burglary reporting to law enforcement by the renter. 

2.3.4. Gravel Protection (GP): covers the vehicle against damages to the paint on bumpers, hood and doors caused by a passing vehicle (excluding Windshield)

2.3.5. Sand and and ash protection (SAAP): covers the vehicle against damages caused by volcanic ash and sandstorms. Self-excess for SAAP is 150.000 ISK if purchased the Gold Package and 0 ISK if purchased with Platinum Package  

2.3.6. Tire Damage (TD): covers the vehicle for flat tires and is only included in the Gold and Platinum Insurance packages. Can be reduced to 90.000 ISK by purchasing Gold and Zero ISK by purchasing the Platinum Insurance.  

2.3.7. Windshield Protection (WP): covers the the vehicle against damages to the Front windshield. Windshield excess is 150.000 ISK and can be reduced to 90.000 ISK by purchasing Gold and Zero ISK by purchasing the Platinum Insurance.

 

3.    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. 

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. Damage owing to war, revolution, civil unrest or rioting. 

3.2.2. Damage inflicted by animals. 

3.2.3. Damage to seats, carpets, mats or other parts of the interior. 

3.2.4. Damage affecting only wheels, tires, suspension, roof, batteries, glass (except for windscreens when additional coverages is purchased), radio receivers, charging cables, charging ports or adapters. 

3.2.5. Damage to the vehicle’s parts, other than body panels, when the vehicle bottoms out while driving on rough or uneven road surfaces, including but not limited to causes like; ridges left by road graders, stones lodged in the road surface or at the edge of the roadway, speedbumps or potholes. The same applies to damage resulting from loose rocks hitting the vehicle or the bottom of the vehicle whilst being driven. 

3.2.6. Damage affecting only batteries and/or electric motors of electric and hybrid vehicles including but not limited to causes like; incorrect charging, collision, bottoming out, driving on rough roads. 

3.2.7. Damage resulting from driving in places where the vehicle is not permitted to be driven, such as tracks, rough trails, in snowdrifts, on ice, across un-bridged rivers or streams, on beaches, on causeways accessible only at low tide or in other off-road areas. 

3.2.8. Damage caused by wind or damage caused by sand, gravel, ash, pumice, or other earth material being blown onto the vehicle. Additional coverages, lowering the excess amount for such damages is offered by the rental company for an additional fee. 

3.2.9. Any damage occurring while driving in water, rivers, streams etc. or any damage caused by water flooding the engine or other components of the vehicle. 

3.2.10. Damage caused by sea spray/seawater if the vehicle is transported by sea. 

3.2.11. Loss of parts of the vehicle which fall off while driving. 

3.2.12. Damage resulting from gross negligence entails that the right to compensation lapses. 

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. If the rental company needs to collect the vehicle, or have it collected, owing to a collision or an accident, the renter shall bear all costs thereof according to the tariff of the rental company at each time. 

3.2.15. In other respects, reference is made to the general terms and conditions for CDW coverage.

4.    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. Volcano Car Rental functions solely as an intermediary for insurance services.

    5.    Resolution of Disputes