Law Passed Allowing Peer-to-Peer Car Sharing Skip to content

Law Passed Allowing Peer-to-Peer Car Sharing

Alþingi, the Icelandic parliament, recently passed a law permitting so called peer-to-peer car rental services.

This new law enables private individuals to rent out up to two cars per year through a certified car sharing agency—allowing more Icelanders to reap the benefits of increased tourism.

The arrangement is similar to that of popular website airbnb where people can temporarily rent out their homes to travelers, while the interests of both parties are protected through the intercession of the agency.

Certain requirements are in place regarding proper insurance and inspection of rented vehicles, and car sharing agencies will be responsible for ensuring that they are met.

“This really means that a person can rent their car for an unlimited time over the course of the year,” says Sölvi Melax at car sharing agency VikingCars.

“So if people want to bike to work in the summer, take the bus when the weather’s good, or rent their car out while they’re abroad, they can now get greater utility from their private vehicle.”

According to Sölvi, a relatively new sedan rented out for a month can bring in about ISK 260,000 (USD 1950/ EUR 1760).

Of this amount about 30 percent goes to the agency, but that nonetheless leaves the car owner ISK 180,000 richer (USD 1350/ EUR 1220), pre-tax.

Such arrangements can similarly be beneficial to travelers, potentially saving them both time and money.

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