Car Rental Guide

Insurance / Compensation

Car insurance is included!

Japanese major rental car companies always include automobile liability insurance and automobile damage insurance in the basic contract charges. In the event of a car accident or damage to another car or people, insurance companies will pay the compensation up to the limit of liability. Insurance coverage should be confirmed before making a reservation.

The following limits of liability are often standard.

<Compensation up to the limit of liability of an insurance company (example)>

Bodily injury Unlimited per person (including automobile liability insurance)
Property damage Unlimited per accident (after the initial excess fee of 50,000 yen is paid)
Car damage Up to the actual value per accident
(after the initial excess fee of 50,000 yen is paid)
Personal injury Compensation of up to 30 million yen per person is paid for injuries
(including death and permanent disability) to (a) passenger(s) resulting from a car accident.

Customer responsibility in case of an accident

  • In the event of an accident, you must pay the deductible.
  • If you enroll in the Collision Damage Waiver (CDW) when using your rental car, you can be compensated for the amount of deductibles for objects and vehicles.
  • However, if you violate the rental agreement, or if reasons for exemption of the insurance agreement or the compensation system apply, the insurance / compensation system cannot be used. Be aware that, in that case, you must bear any damages due to an accident.
  • A Non Operation Charge (NOC) is assessed as compensation for business interruption in the case of accident, theft, malfunctions and other problems that are not the responsibility of the rental car company.

    • You will still be responsible even if you have Collision Damage Waiver (CDW).
    • Charges may vary, depending on whether the vehicle is (or can be) returned to the originally designated location.