Japan rental car insurance: CDW, NOC and accident costs explained
Key points
- Japanese rental car prices already include basic insurance, but you pay a deductible (usually ¥50,000 for property damage and ¥50,000 for the car) unless you add a collision damage waiver (CDW).
- CDW costs from about ¥1,100 per day at Toyota Rent a Car and Nippon Rent-A-Car. It waives the deductible, but not the non-operation charge (NOC).
- The NOC is ¥20,000 if the car can still be driven back to the office, and ¥50,000 if it cannot. Some companies sell an extra option that waives it.
- After any accident, call the police (110) and your rental company from the scene. Without a police report, insurance and CDW may not apply.
Japanese rental car prices already include basic insurance. But if you have an accident, you still pay a deductible (usually ¥50,000 each for property damage and for the car) and a non-operation charge (NOC) of ¥20,000 or ¥50,000. A collision damage waiver (CDW) removes the deductible for about ¥1,100 per day, and some companies sell a second option that also waives the NOC.
What insurance is included in a Japanese rental car?
Insurance for injuries to other people, damage to other people’s property and damage to the rental car is included in the rental price. The amounts are similar at the two largest companies:
| Coverage | Toyota Rent a Car | Nippon Rent-A-Car (Recommended course) | Deductible you pay |
|---|---|---|---|
| Injury or death of others | Unlimited per person | Unlimited per person | None |
| Damage to others’ property | Unlimited per accident | Unlimited per accident | ¥50,000 |
| Damage to the rental car | Up to the car’s value | Up to the car’s market value | ¥50,000 (¥100,000 for some large vehicles) |
| Injury to you and your passengers | Up to ¥30 million per person | Up to ¥50 million per person | None |
Source: Toyota Rent a Car, Explanation of Important Items; Nippon Rent-A-Car, Insurance and compensation (checked on 23 October 2026)
Other companies have their own amounts. Check the insurance page of the company you book with.
What is CDW and how much does it cost?
A collision damage waiver (CDW) is an option you add when you pick up the car. It is not insurance: it means you do not pay the deductible for property damage and damage to the car.
| Toyota Rent a Car | Nippon Rent-A-Car | |
|---|---|---|
| Name | Exclusion of Liability Compensation System | CDW |
| Price (tax included) | ¥1,100 per 24 hours (¥2,200 for some car classes) | ¥1,100–2,200 per day |
| What it waives | Deductible for property damage and the car | Deductible for property damage and the car |
| Does it waive the NOC? | No | No |
Source: Toyota Rent a Car, Explanation of Important Items; Nippon Rent-A-Car, Insurance and compensation (checked on 23 October 2026)
Without CDW, a single accident can cost you up to ¥100,000 in deductibles at these two companies, plus the NOC.
What is the NOC (non-operation charge)?
The non-operation charge (NOC) is a fixed fee for the business the rental company loses while the car is being repaired or cleaned. You pay it after an accident, theft, breakdown or soiling that is not the company’s fault. CDW does not cover it.
| Situation | Toyota Rent a Car | Nippon Rent-A-Car |
|---|---|---|
| You can drive the car back to the planned return office | ¥20,000 | ¥20,000 |
| The car cannot be driven, or is not returned to the planned office | ¥50,000 | ¥50,000 |
Source: Toyota Rent a Car, Explanation of Important Items; Nippon Rent-A-Car, Insurance and compensation (checked on 23 October 2026)
Can I avoid paying the NOC?
Some companies sell a second option on top of CDW:
- Toyota Rent a Car: the Double Protection Package (DPP), ¥1,650 per 24 hours (¥2,750 for some car classes), tax included. Toyota says it covers the NOC, and also flat tyres and lost hubcaps. Toyota also notes that, depending on the accident, it may not apply.
- Nippon Rent-A-Car: the Extra Coverage Option (ECO). Nippon Rent-A-Car says the NOC is waived if you accept ECO. ECO is not offered to drivers with certain past accident records.
Check the price and conditions of these options when you book. They are not insurance, and the conditions differ by company.
What should I do after an accident?
Toyota Rent a Car and Nippon Rent-A-Car give the same basic steps:
- Help anyone who is injured. Call 119 for an ambulance if needed.
- Move the car out of the way of traffic if you can do so safely.
- Call the police on 110 from the scene, even for a small accident. Nippon Rent-A-Car says you should get an accident certificate.
- Write down the other driver’s name, address and phone number, and where the accident happened.
- Call your rental company from the scene. The phone number is on your rental agreement.
Source: Toyota Rent a Car, Explanation of Important Items; Nippon Rent-A-Car, Insurance and compensation (checked on 23 October 2026)
Do not agree to settle with the other driver on your own. Nippon Rent-A-Car says insurance may not apply if you settle without its consent.
When does insurance not apply?
Both companies say insurance and CDW may not apply in cases like these. You then pay the costs yourself.
- You did not report the accident to the police (and, at Nippon Rent-A-Car, to the company) from the scene.
- Someone not named on the rental agreement was driving.
- The driver had no valid licence for Japan.
- The driver had been drinking alcohol.
- You kept the car beyond the rental period without permission.
- The car was stolen with the key left inside.
Source: Toyota Rent a Car, Explanation of Important Items; Nippon Rent-A-Car, Insurance and compensation (checked on 23 October 2026)
Nippon Rent-A-Car also lists flat or damaged tyres, lost keys, smoking in a non-smoking car, wrong fuel and off-road damage as things insurance does not cover.
What do I need to bring to pick up the car?
- A driving licence that is valid in Japan. For most visitors this is an International Driving Permit under the 1949 Geneva Convention. Visitors from Taiwan, Switzerland, Germany, France, Belgium and Monaco can use their licence with an official Japanese translation. See Can I drive in Japan with my licence?
- Your passport. Toyota Rent a Car asks for it if you use an International Driving Permit or a non-Japanese licence.
- A credit card. Toyota Rent a Car takes payment before you set off and does not accept debit or prepaid cards. Cash is possible for some car classes if you show your passport.
Source: Toyota Rent a Car, Rental guide (checked on 23 October 2026)
When you return the car, fill the tank at a gas station near the office. Toyota Rent a Car charges a fuel fee based on distance if the tank is not full.
FAQ
- Is insurance included in a Japanese rental car?
- Yes. Basic insurance for injuries to others, damage to property and damage to the rental car is included in the price. You still pay a deductible and the NOC unless you buy the extra options.
- Should I buy CDW in Japan?
- Without CDW, you pay up to ¥50,000 for property damage and ¥50,000 for damage to the car after an accident at Toyota Rent a Car and Nippon Rent-A-Car. CDW removes these deductibles for about ¥1,100–2,200 per day, depending on the car.
- What is NOC in a Japanese rental car?
- The non-operation charge (NOC) is a fixed fee for the time the car cannot be rented out while it is repaired or cleaned. At Toyota Rent a Car and Nippon Rent-A-Car it is ¥20,000 or ¥50,000. CDW does not cover it.
- Do I need to call the police for a small accident?
- Yes. Nippon Rent-A-Car says all accidents must be reported to the police, however small. Both Toyota Rent a Car and Nippon Rent-A-Car say insurance may not apply if you do not report the accident.
- What documents do I need to pick up a rental car?
- A driving licence valid in Japan (an International Driving Permit or your licence with an official Japanese translation, depending on your country) and your passport. Toyota Rent a Car also asks for a credit card if you pay by card, and does not accept debit or prepaid cards.
Sources
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