At Thrifty Car Rental Iceland, we are committed to clear and honest communication about potential charges related to damages or additional services. Below you’ll find everything you need to know about insurance coverage, non-covered items, and fees that may apply during your rental.

Included Protection

  • Collision Damage Waiver (CDW): Included in all rentals. Reduces your liability for bodywork damage, excluding damage to the undercarriage, windshield, tires, headlights, or interior.
  • Third-Party Liability Insurance (TPL): Covers damage or injury to others in the event of an accident.

Optional Add-ons

  • Super Collision Damage Waiver (SCDW): Reduces your liability even further.
  • Theft Protection (TP): Limits liability in case of theft.
  • Windshield Protection (WSP): Covers damages to the windshield and headlights caused by gravel.
  • Sand and Ash Protection (SAAP): Protects against sand or ash damage, which can be extremely costly in Iceland.

Each protection plan has its own non-waivable excess (N.W.), which is the maximum amount you will pay out-of-pocket in case of damage. This varies by vehicle type – please refer to our pricing table for exact amounts.

What Is Not Covered?

Regardless of coverage, the renter remains fully liable for the following types of damages:

  • Undercarriage damage
  • Water damage (e.g., river crossing)
  • Off-road driving damage
  • Damage from negligence or reckless driving
  • Damage from unauthorized drivers
  • Driving under the influence
  • Tire punctures or blowouts (unless covered by additional protection)
  • Theft of individual car parts
  • Driving on prohibited or F-roads without proper 4×4 vehicle
  • Sand/ash damage if SAAP was not purchased

Damages and Additional Fees

ItemPrice per DayMax. FeeMin. FeePer RentalPer Km
Additional Driver1.150 kr.8.050 kr.
Airport Service Charge5.500 kr.
Car Returned at Hotel (available only where Thrifty station is located)24.900 kr.
Administration Fee4.000 kr.
Car Returned After Opening Hours14.900 kr.
Cleaning Fee24.900 kr.
Labour Hour (repair cost)15.000 kr.
Damaged Vehicle Towing (with trailer)64.900 kr.500 kr.
Car Replacement Delivery (incl. key replacement)64.900 kr.250 kr.

Important Notes:

  • The renter is always responsible for the cost of transporting a damaged vehicle.
  • Towing and roadside assistance fees are not included in any protection package – the renter must pay these in full.
  • Minimum towing/replacement charges apply according to the official Thrifty Iceland price list at the time of rental.

Returning the Vehicle

  • The rental car must be returned to the Thrifty return station, located just 300m from the Keflavík Airport departure hall.
  • Follow signs for “Car Rental Return” or enter Thrifty Return Station – Keflavík International Airport on Google Maps.
  • For after-hours returns, park in the designated blue return spots and drop your keys in the “out-of-hours key drop” box.

Other charges – if you didn’t pay the toll or any tickets

Fuel Policy

Our cars go out with a full tank, and we ask that you return them the same way.
If the tank isn’t full when you bring it back, we’ll top it off—and a fuel and service fee will apply.

Looking for info on fuel charges, extra drivers, gear rentals, or protection plans?
You’ll find it all on our Car Protection & Extras Price List.

Parking, Tunnel Fees & Fines

You’re in the driver’s seat when it comes to paying for parking, tunnel fees, speeding tickets, or other fines during your rental. These aren’t included in your rental price, so be sure to pay as you go—especially in paid parking areas around Iceland.

Skip a payment? No problem—we’ll handle it.
But we’ll need to charge your card for the original fee plus an admin fee to cover processing.

Your next cheap rental in Iceland is await.

Keflavík International Airport Arrivals Hall (KEF)

Keflavík International Airport Arrivals Hall (KEF)

Leifur Eiríksson International Airport (KEF), 235 Reykjanesbaer,

Reykjavík Downtown

Reykjavík Downtown

Flugvallarvegi 5, 101 Reykjavík,

Reykjavík Domestic Airport (RKV)

Reykjavík Domestic Airport (RKV)

Reykjavík Domestic Airport, 102 Reykjavík,