At a Glance
The biggest worry travelers have isn’t really “scams” — it’s being charged a large, unexpected damage fee after returning the car, often for gravel chips, undercarriage damage, or other wear that’s easy to miss at a quick glance. The best defense is understanding your self-liability upfront and documenting the car at pickup and return.
Breaking it Down
Iceland’s gravel and F-roads mean rental companies inspect returned vehicles closely, and a genuine damage charge can still feel like a shock if you didn’t know what you were liable for going in. This is really an insurance-literacy issue more than a scam issue: every rental includes basic CDW and TPL by law, but Basic Cover still leaves you responsible for an excess amount on covered damage, and some things — like underbody, water, damge due to illegal driving or off-road damage — are never covered regardless of coverage level.
Choosing a higher coverage tier (Medium or MAX) reduces or removes that exposure, so it’s worth matching your protection level to your planned route before you pick up the car. To protect yourself either way: photograph or video the vehicle’s exterior at pickup and return, note any existing marks with staff before you drive off, and keep your final invoice and any correspondence.
If a charge is ever disputed, it can be raised with Hertz Iceland directly, and unresolved consumer disputes in Iceland can also be taken to the Icelandic Consumer Agency (Neytendastofa) or the European Consumer Centre (ECC) for cross-border bookings. For a full walkthrough of what’s covered at each level, please check our Coverage & Protection page, and for general trip-safety guidance, please check our Safe Travel Tips blog.
