Addendum (4 June 2019): I've created a wiki, so that other Jpn forum regulars can add useful info and edit as needed. The first version of wiki is essentially my original post (which I'm keeping here) copied and pasted over. I appreciate your contribution.
Although there has been a lot of discussions in
this other thread about car rentals in Jpn, I thought it'd be a better idea to start a new thread dedicated to rental car policies in Jpn.
Having now rented a car half-dozen times over the past 3 years in Jpn, I'd like to share what I've learned thus far:
Insurance / Waiver:
General issues - Japanese car rental insurance/waiver
- Jpn car rentals generally automatically comes with insurances included.
- Those coverages include:
a).Third-party injury/death (対人補償; Jpn rental agencies seem to translate it as "bodily injury/damage")
b).Third-party damage (対物補償; Jpn rental agencies seem to translate it as "property damage")
c).Rental car damage (車両補償; Jpn rental agencies seem to translate it as "car damage" or "rented vehicle damage")
d).Renter's injury/death (人身障害補償; "personal injury", "physical injury", etc)
- The word 補償 literally means compensation but, in this case, it means insurance coverage.
- From my experiences, usually (a) coverage has no limit and (c) coverage is up to the value of the car at the time.
- Coverage amounts for (b) and (d) tend to vary amongst different agencies.
- From my experiences, usually (b) & (c) have deductibles, whereas (a) & (d) do not. Deductibles (=excess) are called 免責 (menseki) in Jpnese.
- CDW (免責保証制度) in Jpn actually waives any deductibles associated with above coverages (including what is essentially liability coverage in US). This is different from US where CDW only applies to rental car damage.
- In addition, there is what's called NOC (non-operation charge), which is the penalty assessed to you for the loss of rental car agency's revenue associated with the time that the car needs to be taken out of service for repair.
- Expect that any damage, no matter how minor, will invariably result in some type of NOC.
- NOC fee schedule/policies vary greatly by agencies.
- Most car agencies also offer NOC waiver for a fee.
- Many rental car companies stipulate that you must contact both the rental car agency and the police immediately upon any incident (including even minor damages to the rental car) that might invoke insurance coverage; failure to do may make the coverage null and void. In addition, some even stipulate that the rental is terminated at the point of the incident/accident. Some even go on to stipulate that you will not get any money back from the remaining portion of the rental.
Understanding your credit card coverage
- US credit card coverage is almost always only for your rented vehicle and does not apply to third-party damages (liability).
- Make sure you call and talk to your credit card company's insurance/claim specialist.
- Some of the key questions to ask:
* Any restrictions as to the country, car type, length of rental?
* Any limit on coverage, or does it cover up to the entire value of the car?
* Is the coverage primary, or secondary to your personal auto insurance?
* Any deductible?
* Does it cover NOC?
* If you have to file a claim, what's the required time frame and do you have to file a police report?
* Is it okay if the rental contract is not in English?
- In addition, it may be helpful to understand what your personal auto insurance covers in terms of liability (3rd party property/vehicle damage) in Jpn.
Example 1:
My credit card coverage: Primary full coverage of rental car damage with zero deductible; NOC included; all coverages null & void if I accept any relevant coverage waiver from the rental car.
My Japanese rental car policy:
* (a) unlimited coverage w/ no deductible
* (b) 30mill yen coverage w/ 150k yen deductible
* (c) up to full value of car w/ 100k yen deductible
* (d) 20mill yen per person coverage w/ no deductible
* coverages void for any windshield or tire/hubcap damage and any damage involving animal
* NOC 50k yen regardless of extent of damage
* CDW 1300y per day
* NOCW (NOC waiver): 600y per day
Decision-making:
1). Decline both CDW & NOCW --> risk responsibility for 3rd party damage deductible (150k yen).
2). Buy CDW & NOCW (1900y/day) --> risk responsibility for rental vehicle damage in case of windshield/tire/hubcap damage or animal collision (these would have been covered by my credit card).
3). Buy CDW only (1300y/day) --> risk responsibility for all items under (2) + NOC.
For me, (1) is almost the no-brainer choice, as it meant saving 1900y / day without measurable net loss of benefits.
Example 2:
My credit card coverage: Primary full coverage of rental car damage with zero deductible; NOC included; all coverages null & void if I accept any relevant coverage waiver from the rental car.
Toyota Rental car policy:
* (a) unlimited coverage w/ no deductible
* (b) unlimited coverage w/ 50k yen deductible
* (c) up to full value of car w/ 50k yen deductible
* (d) 30mill yen per person coverage w/ no deductible
* NOC 20~50k yen
* CDW 1080y per day
* DPP (Double Protection Package) = CDW + NOCW: 1620y per day
* Coverages void for any tire/hubcap damage, but such repair will be covered if you enroll in their DPP.
Decision-making:
1). Decline CDW/DPP --> risk responsibility for 3rd party damage deductible (50k yen).
2). Buy DPP --> eliminates virtually all risks, plus gain benefit of free roadside service for flats, etc.
3). Buy CDW only --> risk responsibility for rental vehicle damage in case of tire/hubcap damage (these would have been covered by my credit card or DPP) + NOC.
In this instance, I'd probably go with (2).
Miscellaneous points regarding car rental:
- 3 items you must have when picking up the car: Passport; Driver's License; International Driving Permit.
- For information regarding booking rental cars in English, refer to these posts in this thread: 30, 34, 37-38, 40. [This will need to be updated continuously.]
- If you're going to waive the agency's CDW, then I highly suggest you carry with you your credit card company's Proof of Coverage letter. Call your card company's insurance/claim department and ask to email you such document.
- There are 3 types of rental car agencies in Jpn: Legacy agencies (大手 [oh-te] agencies); Budget chains (格安 [kakuyasu] agencies); independent places some of which are kakuyasu.
- In general, try to go with legacy places. Those include: Nissan; Nippon; Toyota; Times; Orix; Budget.
- Try to avoid kakuyasu places. Those include: Ones; Niconico. I have firsthand experience with Ones. They were terrible, and they gave me a jalopy with dents and rusts everywhere, >200k km on it, on the verge of breaking down. Even then, they still dared to inspect the vehicle upon return with fine tooth comb to look for any new damage they could ding me for. Even if the vehicle comes with Navi, it will probably be outdated and unreliable.
- In Sapporo / CTS, there are 3 agencies that specialize in Honda cars, and they all contain the name "Honda." But each one is actually a local independent operation. I've rented from Honda Rent-a-Lease, and they were fine. I still would've preferred renting from one of the legacy agencies. Honda Rent-a-Lease's insurance and waiver programs had a lot of restrictions, higher deductibles and loopholes not seen with companies like Orix.
- Because the 3 agencies in Sapporo/CTS featuring Honda cars have similar names, this creates much confusion. For example, Honda Rent-a-Lease (ホンダレンタレース北海道）has website
www.hondarentacar.jp, while Honda Rent-a-Car (ホンダレンタカー) has website
www.hondarent.com. To avoid confusion, always match the agency's phone # on your reservation with the phone # listed on the website you're looking at.
- Japanese agencies are very particular about noting any little scratches and dents. Make sure you inspect the vehicle carefully and document every little thing at the time of pick-up.