1. Basic (mandatory) insurance — included in every car rental
By law, all rental plans in Japan must include baseline compulsory and voluntary insurance in the listed price. This covers the legal minimums without customers needing to opt in separately, but it's still basic coverage — some costs aren't covered and customers may pay out of pocket. Sites usually show this as a simple table: liability limits for injury/death, property damage, and vehicle damage, plus the deductible amount if something goes wrong.
2. Optional Collision Damage Waiver (CDW / 免責補償制度)
Without CDW, ¥50,000 deductible on car damage and ¥50,000 on property damage — so a minor guardrail scrape still costs the renter out of pocket. With CDW purchased (commonly around ¥1,000 per day, depending on car class), that deductible drops to zero. *** coverage is voided unless the police are contacted immediately*** . In Japan even minor scratches or parking scrapes count as accidents that must be reported.
3. NOC (Non-Operation Charge) — separate from CDW
NOC applies even if you have already purchased CDW — it's a separate fee for the rental company's loss of use of the vehicle while it's being repaired, generally around ¥20,000 if the car is still drivable or ¥50,000 if it isn't. Some companies sell an add-on to waive this too — bundled "full support" or "peace of mind" packages (安心パック) that combine CDW plus NOC waiver plus enhanced injury limits, often ¥1,500–¥2,500/day, so that even a total loss costs the renter nothing out of pocket as long as terms weren't violated (drunk driving, no police report, etc.).
4. Fine print / exclusions section
Customers remain liable for any damage exceeding coverage limits or excluded from coverage entirely, plus specifics like unauthorized drivers, off-road use, or failure to report to police within a set time window.
