Rental Car Insurance in Japan

Driving a car during travel exponentially expands the potential of your trip.
However, driving a car also comes with the risk of accidents. Recently, the data in Japan found that the accident rate for tourists was about four times that of locals.

       Tourist Rental Car Accident Trends (Okinawa)

     Source: Ministry of Land, Infrastructure, Transport and Tourism

In the event of an accident while abroad, unexpected difficulties may arise due to language barriers or unfamiliar laws and regulations. To help alleviate that anxiety, keep reading this guide!

1. Insurance and Compensation Services
  ① Basic rental car insurance
   What is the compensation fee?
  ② Compensation Coverage (CDW)
  ③ Other insurance services offered by each rental car company
2. Required fees in case of an accident
   What is NOC?
3. Why booking with ToCoo! is better

NOC, compensation coverage, CDW, etc. are frequently used terms you encounter when renting a car in Japan, but there are many people who are wondering about the details of each one. In this guide, we will discuss the specifics of rental car insurance and compensation coverage and how to select them at booking.

1. Insurance and Compensation Services


① Basic rental car insurance
All rental cars in Japan include basic insurance as below. Please note that each rental car company has different policies, so the compensation details may vary.

Example: Nissan Rent a Car insurance system

Personal Injury  Unlimited coverage for each person (including vehicle liability insurance up to 30,000,000 yen)
*Compensation for injury of a third party
Property Damage Compensation 20,000,000 yen per accident (compensation fee: 50,000 yen
*Compensation for damage to a third party’s car, utility pole, building, etc.
*Customer responsible for 50,000 yen compensation fee
Vehicle Compensation Actual cash value of the vehicle (compensation fee: 50,000 yen), but micro bus, truck, other specific types of car  will have a compensation fee of 100,000 yen
*Compensation for damage to the rental car
*Customer responsible for 50,000~100,000 yen compensation fee
Passenger Compensation Maximum 30,000,000 yen per person
*Compensation for injury, death, or long-term side effects to passengers (including driver) due to accidents while in the car

※Customers are liable for all damages incurred which either exceed the insurance coverage amount or are exempt from coverage.


■ What is the compensation fee?
This is the amount that the customer must pay in the event of an accident which is covered by the basic insurance.


② Compensation Coverage  (CDW)
CDW is an abbreviation for collision damage waiver.
If you purchase compensation coverage, the car rental company will cover the compensation fee you would normally have to pay. In other words, you would not have to pay the above 50,000 yen for property damage compensation and 50,000 to 100,000 yen for vehicle compensation.

*Even if you purchase compensation coverage, all coverage will be voided unless you immediately contact the police.
*Even small scratches that don’t stand out are considered accidents in Japan, so you must report them to the police. In Japan, the definition for accidents includes lightly brushing a wall or the car getting scratched due to negligence when parking.


③ Other insurance services offered by each rental car company
The following add-on services may be recommended when you pick up the car at the outlet.
*However, please be aware that all ToCoo! reservations already include NOC payment coverage and towing fee coverage service of up to 100,000 yen, so please be careful not to purchase overlapping services.

Rental Car Company Insurance Service Details
Nissan Rent a Car NOC Support Plan NOC payment coverage
Nissan Anshin Support Plan (NAS) Roadside service, etc.
Nippon Rent a Car Extra Coverage Option (ECO) NOC payment coverage
Safety Course Roadside service, etc.
Times Car Rental Super Safety Package NOC payment coverage and roadside service
Toyota Rent a Car Double Protection Package NOC payment coverage and tire trouble
Budget Rent a Car Safety Pack NOC payment coverage, on-board accessory damage compensation, and tire trouble

*The above chart is for reference only, and the services may be changed by the rental car company. Check with your car rental company for more information and terms.

2. Required fees in case of an accident

In the event of an accident, the following amounts usually need to be paid at the rental car outlet.

Compensation fee: 50,000~150,000 yen 
    & 
NOC: 20,000~50,000 yen


■ What is NOC?
NOC is an abbreviation for non-operation charge.
If the rental car needs to be repaired or cleaned due to a breakdown, damage, odor, etc., this is the amount charged by the rental car company as compensation for lost sales during that period.

When the vehicle is returned to the originally planned office by itself 20,000 yen
Other situations 50,000 yen

*The NOC amount may vary depending on the rental car company.


3. Why booking with ToCoo! is better

All ToCoo! reservations include ToCoo! Additional Support (T.A.S.), which covers Non-Operation Charge (N.O.C.) and up to 100,000 yen in towing fees.
※ T.A.S. is mandatory for all ToCoo! reservations. It is an exclusive service.
If you book with ToCoo! and purchase compensation coverage, you will have to pay 0 yen in case of an accident.
ToCoo! also offers full coverage plans that include compensation coverage, so please choose it when you make your reservation.

Summary
✔ T.A.S. which covers NOC and towing fees is automatically included in all ToCoo! reservations
✔ If you purchase the rental car company’s compensation coverage, the fee for an accident will be 0 yen
✔ Rental car companies also offer their own compensation services, but beware of duplicate services

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