Cancellation Policy – Prepaid Bookings
In case of a cancellation, the rental needs to be cancelled more than 3 days prior to rental pick up for a full refund. If a rental is cancelled with less than 3 days notice or in case of no show the full rental price will be charged.
- 3 days or earlier – Full refund
- Less than 3 days – Non refundable
If you need to cancel your prepaid reservation please do so by sending an email to dollar@dollar.is stating your name and reservation number.
Cancellation Policy – Pay on Arrival Bookings
Pay on arrival bookings (pay later) can be cancelled up to the time your rental is due to begin. You can cancel pay on arrival bookings on our website by clicking the View/Cancel booking button in the top right hand corner of the website.
Want To Extend Your Booking?
- Extensions depend on availability at the time of request. Additional charges apply based on the extension period and rental rate for an available vehicle.
- Please note, if the rental was originally paid through a third party but is not extended through them, standard rates from Dollar Rent a Car Iceland apply.
- Extensions are confirmed only after the renter has electronically signed a new rental contract and paid for the extension.
Flexible Cancellation and Refund Policy
To cancel your car rental booking promptly, please contact us and provide your reservation number, which can be found in your confirmation email.
Refunds may take 3-10 business days to reflect on your credit card statement. If you do not see the
Rental Requirements:
A credit card under the renter’s name is obligatory. The credit card must remain valid for at least 6 months beyond the vehicle’s scheduled return date. The physical credit card must be presented during vehicle pickup. A valid driver’s license is necessary for all rentals.
Credit Card Policy:
Credit Card Requirements at Pickup – Dollar Iceland – To collect your rental vehicle, you must present a valid credit card in the main driver’s name. Please note the following important conditions:
- The cardholder must be the renter.
- The physical credit card must be presented at the rental desk.
- Debit cards and prepaid credit cards are accepted if sufficient funds are available and the card has a 16-digit number starting with 4 or 5.
- The card used for online prepayment must be presented at pickup.
- Virtual cards, Apple Pay, Google Pay, and similar payment methods are not accepted.
- Cash payments are not accepted under any circumstances.
Driver License Policy
- All drivers must present their valid driver’s licenses at pickup. The renter has the option to designate another driver if they prefer not to drive.
- A valid driver’s license with Latin letters is sufficient. If the license does not include Latin letters, an International Driver’s License must be provided. Please note, an International Driver’s License must always be presented alongside the national driver’s license at pickup.
- You can rent a car with a newly issued driver’s license; however, please review the minimum age requirement below.
- The minimum age for drivers is 20 years old. For more details about car classes, please visit our cars page.
Dollar Rent a Car Iceland Late Arrival Policy
Reservations will be held for two (2) hours beyond the reserved pick-up time, unless you contact us to adjust your arrival time. After two hours, the reserved vehicle may be made available to other customers. If you arrive later than two hours after the reserved pick-up time, we will attempt to provide a vehicle, but availability cannot be guaranteed.
In case of a flight delay extending beyond the opening hours of the location, the facility will remain open provided the reservation includes the correct flight number and the airline has notified us of the delay and revised arrival time. An out-of-hours fee will apply after regular opening hours.
Administration Fees and Other Charges
Familiarize yourself with our administration fees and additional charges, which can be avoided by adhering to the terms and conditions of the rental agreement. Please read them thoroughly. It is crucial to ensure parking fees are paid, adhere to speed limits, and refill the fuel tank before returning the car, as this can lead to cost savings.
*New in 2026 – A government-mandated road usage tax now applies to all plug-in hybrid (PHEV) and electric vehicles (EVs) in Iceland. This fee supports general road maintenance and replaces traditional fuel-based road taxes.
For PHEV and EV rentals, the Road Usage Tax will appear as a separate charge on your rental agreement and receipt.
| Fines/Charges/Fees | Amount [ISK] |
| Fine for smoking in car | 100.000 |
| Extra cleaning charge | 24.900 |
| Fuel cost per liter for missing fuel | According to daily rate at Olis |
| Fuel filling administration fee | 6.000 |
| Administration fee for parking tickets | 4.000 (per ticket) |
| Administration fee for traffic violations | 4.000 (per request) |
| Administration fee for postal services of lost and found | 6.000 |
| Hybrid Car Kilometre Charge (kílómetragjald) | 500kr (per day) |
| Electric Car Kilometre Charge (kílómetragjald) | 1500kr (per day) |
Emergency assistance
If a renter is responsible for immobilizing a vehicle and requires assistance from Dollar, an emergency assistance fee will be applied as follows:
| Fines/Charges/Fees | Amount [ISK] |
| Emergency assistance fee | 500 ISK/KM |
| Emergency assistance starter fee | 64.900 ISK |
If the car rental agency or renter needs to engage a third party to recover or retrieve the vehicle, the emergency assistance fee will be based on the rates specified by the rescuing party, which the renter should review. Additionally, Dollar Rent a Car will charge a starting emergency fee of 64.900 ISK.