Terms and Conditions


(CDW) Collision damage waiver

  • The lease sum/rental fee includes mandatory vehicle insurance, including liability insurance and accident insurance for the driver and the owner. Third-party liability insurance will consist of the amount stipulated by Icelandic law at any given time.
  • The lessee can purchase separate accident (CDW) insurance. This policy will specify the amount deductible in each instance of loss. CDW insurance is included in the rental price, the driver liability in excess of ISK 350,000. CDW covers damages to the rental vehicle; it waives liability in case of any damages to the vehicle in excess of ISK 350.000 for 2wd and ISK 450.000 for 4wd and vans.
  • Each own-risk only applies to one incident. In instances of more damage that obviously did not occur at one and the same time, each own-risk CDW applies to only one incident.
  • This Collision Damage Waiver – CDW does not cover:
  • Intentional damage or damage due to gross negligence on the part of the driver.
  • Damage resulting from the driver being under the influence of alcohol, stimulants or sedatives, or in any other way incapable of driving the vehicle in safe manner.
  • Damage due to race or test driving.
  • Damage due to war, revolution, civil unrest, or riots.
  • Damage done by animals.
  • Holes burned into seats, carpets, or mats.
  • Damage 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.
  • Damage caused by driving on rough roads to the vehicles transmission, drive, other parts that are in or attached to the chassis; damage to the chassis resulting from scraping the bottom on rough roads as a result of ridges being left by the road graders; stones lodged in the road surface or on the shoulder of the road. The same applies to damage occurring when stones are thrown up, striking the underside of the vehicle during driving.
  • Damages resulting from driving in places where vehicle traffic 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.
  • Damages caused by sand, gravel, ash, pumice, or other kinds of earth material being blown onto the vehicle, only SADW (Sand and Ash Damage Waiver) covers such damage – please refer to General provisions.
  • If the vehicle is transported by sea, no compensation will be paid for damage caused by sea spray/seawater.
  • Damages to passenger cars and/or 2wd vehicles caused by driving on roads marked with an F in public maps      as well as driving on Kjölur (Road 35) or Kaldidalur (road 550)
  • Lessors loss because of the vehicle being stolen.
  • Water damage to the vehicle.

(GP) Gravel protection

Gravel protection includes damage to windscreen, headlights and the car when gravel or rocks get thrown on the
vehicle by another car. Best advice is to keep your distance from other cars. Self-risk is except for
damages caused to the windscreen which has a self-risk of 35.000 ISK.
In Iceland there are over 500 km of public gravel roads. If you plan on driving around the country we highly
recommend this protection.
​​GP does NOT cover gravel damage under the car, such as water damage or F-road trips.

(SADW) Sand & ash damage waiver

Sandstorm protection covers damage to the paint, windows, lights, plastics, chromes and rims of the rental cars, caused by sand or other earth materials being blown onto the vehicle. No regular insurance cover damage from ash or sandstorm. The damage to paint, glass and plastic parts can cost up to 2.000.000ISK. Therefore we offer an extra insurance (SADW) covering these damages, lowering your cost to 150,000 ISK as self-risk

(TP) Theft protection

Theft protection (TP) covers you against theft of the rented vehicle. By choosing this insurance the excess in the event of theft will be 800€. The excess for hirers without TP will depend on the terms stated in their respective CDW or SCDW policy.

(SCDW) Super collision damage waiver

When you take Super CDW you change the self-risk from 350.000kr to ISK 170.000 for 2wd and 200.000 ISK for 4wd and vans. Super CDW is available for ISK 1.500,- per day. But no insurance covers damage to the underside of the car. The renter is always responsible for the following damages, which are not covered by CDW or SCDW insurance: e.g. negligence, driving while intoxicated, damage to tires, headlights, wind screen and the underside of the car, damage caused by loose rocks which get thrown at the car on gravel roads, damages to the engine of the car.

(PIP) Premium Insurance Package – Recommended 

All insurance are included in this package (Collision Damage Waiver, Super Collision Damage Waiver, Gravel Protection, Sand and Ash Protection, Theft Protection)
Before you leave from our office we have to lock the self risk amount on your credit card and you get it back if the car is without damage.



You can pay 25% deposit when you book your motorhome and pay the rest when you arrive.

Drive and Sleep will never give or sell any personal information about its customers to any unaffiliated third parties, persons or companies (unless court ordered).

The minimum billed rental period is two days – 48 hours. When the drop off time is one hour or more after the pick-up time, it is regarded as a full day.

We do pick-up our customers at Keflavik International Airport KEF (also called Reykjavik International Airport)(from 9.900ISK) or from hotels, guesthouse or other accommodation in Hafnarfjordur for free. We deliver cars at our office in Rauðhella 14, Hafnarfjordur.
When we pick-up from hotels, guesthouse or other places outside Hafnarfjordur we charge a low fee.

You can drop off the car at our office in Hafnarfjordur and we take you free of charge to the next bus stop that goes to airport.
If you have any problems with dropping off the car please email info@driveandsleep.is or call +354 6978643
Taking the rental car outside of the country is forbidden

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

In Iceland it is mandatory for young children to travel in safety seats while in a vehicle. Children seats and cushions are available if order before. The seats are generally suitable for children from new born to 36 kg. Cushions are available as well for kids, 15-36 kg.


  • For picking up damaged car ISK 350 + vat per km outside Reyjavik and surroundings minimum ISK 100.000
  • If car is returned extra dirty or someone smoked inside the car which is forbidden, the renter has to pay ISK 15.000 cleaning fee.
  • The car will be handed to you with a full tank of gas, and should be returned with a full tank of gas. If forgotten, a fee of 15000kr will be credited / billed.


Cancellation policy

Until 50 days before beginning of rental 20% with a minimum of 25.000 isk of rental price

  • Between 49 to 15 days before beginning of rental 50 % of rental price
  • Less than 15 days before beginning of rental 80 % of rental price
  • At rental day / day of pick up or by no show 95 % of rental price
  • Later changes are not permitted. Each rental amendment will be charged according to the valid price list. After conclusion of the contract the customer is not entitled to any changes with
  • regard to begin of term of rental


Terms of payment, security deposit

  • The security deposit from 170.000 isk to 250.000 isk must either be received together with the hire charge in the Rental Firm’s account at the latest when the vehicle is collected. (MasterCard or Visa) A payment of the deposit with Prepaid Credit Cards or cash are not possible.