Japan Rental Car Insurance: Deductible, NOC and ¥0 Cover

How rental car insurance works in Japan

Every car on Japanese roads must carry compulsory automobile liability insurance. It is required by law for every vehicle. On top of it, rental companies carry their own commercial insurance, and that policy decides the limits, deductibles and extra charges you actually see on a rental.

At Go on Rent-a-Car, every rental is covered by our commercial rental-car insurance with a Japanese insurer. You do not choose a level of cover and you do not need to buy anything else: the insurance and the required Safety Pack are already in the price, from ¥14,650 per day all-in (car from ¥13,000 + Safety Pack ¥1,650, tax included).

The rental company's insurance has four parts. Two protect other people (injury and property), one protects the rental car itself, and one protects you and your passengers. Two of them come with a deductible — the part of a claim the customer normally pays before insurance takes over.

What is covered: our cover table

This is the cover in Article 12 of our rental terms, with what you pay once the Safety Pack applies.

Loss above the insurance limits, or loss that insurance does not cover, is borne by the customer. For accidents covered by insurance we may waive this at our discretion (Article 12(3)).

What is the NOC (Non-Operation Charge)?

The NOC is a fixed charge that Japanese rental companies ask for when a car is damaged. In Japanese it is called 休業補償, "compensation for lost business": while the car is being repaired it cannot be rented to anyone else, and insurance does not pay for that time. That is why the NOC is charged on top of the deductible — and why many visitors are surprised by it.

Under our terms the NOC is ¥20,000 if the car can still be driven and ¥50,000 if it cannot (for example, if it has to be towed). With the Safety Pack you do not pay it for covered accidents.

The Safety Pack: ¥1,650 a day, and covered damage costs ¥0

The Safety Pack costs ¥1,650 per day. It is required for every rental and is paid online together with the rental when you book. For accidents covered by insurance it waives both:

• the ¥50,000 deductible for damage to property, and the ¥50,000 deductible for damage to the rental car, and
• the Non-Operation Charge (¥20,000 or ¥50,000).

Example: you scrape the front bumper in a car park. A front-bumper repair or replacement (including sensors) usually costs about ¥300,000–500,000 in Japan. With the Safety Pack and a police report, you pay ¥0.

If you cancel, the Safety Pack charge is never subject to cancellation fees: it is always refunded in full.

What is NOT covered

Insurance and the Safety Pack do not apply in the cases below. You then bear the loss yourself — repair costs, the NOC, towing and so on (Article 12(4)):

1. An accident that was not reported to the police.
2. Driving under the influence of alcohol or drugs, without a valid licence, or by a driver who is not registered on the contract.
3. An accident caused by breaking the prohibited acts in Article 9 — for example driving while overtired, subletting, racing or testing, towing another vehicle, illegal use, or driving on snow or taking the car on a ferry without our consent (the rules on smoking and pets are not part of this exclusion).
4. Intentional damage.

In these cases we charge the full repair cost and other losses to your saved card, but only after emailing you an itemised notice, and you can object within 20 days. We check the facts first (police inquiries, your explanation, the insurer's decision), and we never charge you again for any amount we received from insurance.

Some everyday costs are also outside the cover: fuel, tolls, parking, traffic fines and roadside help (flat battery, flat tyre, keys locked in) are paid at cost.

Do I need extra insurance? One-day cover and credit cards

No. You do not need to buy car insurance yourself.

• One-day car insurance sold in Japan (1日自動車保険) cannot be used for rental cars.
• Travel insurance or credit-card cover may also cover rental-car excess, so it is worth checking before your trip. But it does not replace our Safety Pack: the Safety Pack is required for every rental, and with it you already pay ¥0 for covered accident damage.

After an accident: how to keep your cover

Japanese law (Road Traffic Act, Article 72(1)) requires the driver to stop, help anyone injured, prevent further danger and report every accident to the police — even a minor one with property damage only. This is also the condition for your insurance.

1. Stop safely. If anyone is hurt, call 119 (ambulance).
2. Call the police on 110 and get the accident recorded. Without a police report the insurance does not pay.
3. Call us straight away. Within 24 hours, report what happened through our website and send photos of the damage and the surroundings (as a rule, 4 photos) — never in a dangerous place or against police instructions.
4. Never settle privately or make promises to the other party — leave it to us.
5. For a breakdown, call JAF Road Service #8139 (24 hours, free interpreter).

Our emergency and driving guide has these steps with Japanese phrases you can show the police. Before you drive, read the Japan road rules for visitors.

Deposit: ¥50,000 held, not charged

At pick-up we place a ¥50,000 hold on your card. It is not a charge. When you return the car at Haneda, we check it together. Costs you owe (for example fuel if the tank is not full) are settled from the hold with an itemised statement, and the rest is released. If there are no extras, the whole hold is released and nothing is charged.

Pick-up and return are at Haneda Airport Terminal 3, P5 car park 8F — see the Haneda Terminal 3 pick-up guide. Ready to go? Book your car.