🚘 Car Rental Insurance Plans
To make your self-drive trip in Japan safer and more worry-free, we offer two types of insurance:
Basic Coverage and the Enhanced Protection PlanRecommended.
The main differences between these plans are how much you must pay out of pocket when an accident occurs for the
vehicle damage deductible, third-party liability deductible, and loss-of-use fee.
This page explains in detail the differences between the two plans and when each is suitable.
Basic Coverage (included in the rental price)
● Includes basic insurance coverage, but you will need to pay a higher deductible in the event of an accident.
● Recommended for drivers who are familiar with Japanese roads and have extensive driving experience.
Enhanced Protection PlanDeductible 0 JPY
● Greatly reduces your financial burden by reducing both vehicle and third-party liability deductibles to 0 JPY.
● Recommended for first-time drivers in Japan, those traveling with family, or guests who prefer minimal financial risk.
1. Comparison of the Two Insurance Plans
The amounts below show the maximum amount you may need to pay out of pocket in the event of an accident (unit: JPY).
| Item |
Basic Coverage |
Enhanced Protection Plan |
Vehicle Damage Deductible
(Damage to the rental car) |
100,000 |
0 |
Third-Party Liability Deductible
(Other vehicles, pedestrians, or third-party property) |
100,000 |
0 |
Loss-of-Use Fee
(Compensation for the rental car being out of service) |
50,000 |
50,000 |
※ Regardless of which plan you choose, if an accident occurs and the vehicle needs repair, a loss-of-use fee of 50,000 JPY will be charged.
※ The advantage of the Enhanced Protection Plan is that it reduces both the “vehicle damage deductible” and the “third-party liability deductible” from 100,000 JPY to 0 JPY.
2. What Do These Three Items Mean?
1. Vehicle Damage Deductible (Rental Car Damage)
If the rental car is damaged in a collision, scratch, or other accident caused by you or another party,
the repair costs are mostly covered by the insurance company and the rental company. However, a portion of the cost
must be paid by the renter. This out-of-pocket portion is called the
vehicle damage deductible.
- Basic Coverage: Up to 100,000 JPY per accident
- Enhanced Protection Plan: Deductible 0 JPY
2. Third-Party Liability Deductible
If, in an accident, “another vehicle is damaged, a pedestrian is injured, or third-party property is damaged,”
compensation is paid under third-party liability insurance.
However, there is still a portion of the amount that must be paid by the renter, which is the
third-party liability deductible.
- Basic Coverage: Up to 100,000 JPY per accident
- Enhanced Protection Plan: Deductible 0 JPY
3. Loss-of-Use Fee (N.O.C / Non-Operation Charge)
If the vehicle must be sent for repair due to an accident, it cannot be rented out during the repair period,
resulting in lost income for the rental company.
To compensate for this, a fixed amount will be charged as a
loss-of-use fee (N.O.C).
- Both plans: 50,000 JPY
- Regardless of whether you choose Basic Coverage or the Enhanced Protection Plan, this fee is charged whenever the vehicle requires repair due to an accident.
Summary:
● The Enhanced Protection Plan reduces both the “vehicle damage deductible” and the “third-party liability deductible” to 0 JPY.
● However, the “loss-of-use fee of 50,000 JPY” applies under all plans.
3. Examples: How Much Will I Actually Pay?
Example 1: Minor Scratch, Only the Rental Car Is Damaged
Suppose the repair cost is 300,000 JPY and no other vehicle or pedestrian is involved.
- Basic Coverage: You pay
→ Vehicle damage deductible: 100,000 JPY
→ Loss-of-use fee: 50,000 JPY
Total: 150,000 JPY
- Enhanced Protection Plan: You pay
→ Vehicle damage deductible: 0 JPY
→ Loss-of-use fee: 50,000 JPY
Total: 50,000 JPY
Example 2: Collision with Another Car, Both Cars Are Damaged
Suppose the repair cost for the rental car is 300,000 JPY.
The damage to the other vehicle and third-party property is largely covered by insurance.
- Basic Coverage: You pay
→ Vehicle damage deductible: 100,000 JPY
→ Third-party liability deductible: 100,000 JPY
→ Loss-of-use fee: 50,000 JPY
Total: 250,000 JPY
- Enhanced Protection Plan: You pay
→ Vehicle damage deductible: 0 JPY
→ Third-party liability deductible: 0 JPY
→ Loss-of-use fee: 50,000 JPY
Total: 50,000 JPY
4. Frequently Asked Questions (FAQ)
Q1: I already have an international driving permit and credit card travel insurance. Do I still need the Enhanced Protection Plan?
A: Some credit cards or personal insurance policies may cover traffic accidents, but the actual coverage and claim procedures differ widely.
If you are not sure whether your existing insurance covers the “deductibles and loss-of-use fees charged by the rental company,”
we recommend choosing the Enhanced Protection Plan to significantly reduce the amount you may need to pay directly to the rental company.
Q2: Is the Enhanced Protection Plan “full coverage”? Does it mean I will never have to pay anything?
A: Not all situations are fully covered. The Enhanced Protection Plan mainly reduces the “vehicle damage deductible”
and the “third-party liability deductible” to 0 JPY, but you will still need to pay the
loss-of-use fee of 50,000 JPY.
In cases of drunk driving, driving without a valid license, serious traffic violations, and similar situations,
the insurance may not cover the accident.
Q3: How should I choose between the two plans?
A: General recommendations:
- First time driving in Japan / Not familiar with Japanese traffic rules → We recommend the Enhanced Protection Plan
- Traveling with family or children → For greater peace of mind and safety, we strongly recommend the Enhanced Protection Plan
- Long-term self-drive, with sufficient personal insurance and clear understanding of the risks → You may choose Basic Coverage according to your risk tolerance