Category: Insurance & Coverage

This is a dictionary for quickly checking, on the spot, the Japanese insurance and coverage terms (CDW, NOC and others) you often see on rental car booking screens and counter paperwork.

It gives not just the meaning but also what to look at when you’re there.

The English on each “In English:” line is the translation that company uses itself. Wording can differ from company to company.

The words in this dictionary

Money words

• 免責額／自己負担額 — deductible
• 免責補償 — CDW
• ノンオペレーションチャージ（NOC） — Non Operation Charge
• 営業補償／休業補償 — compensation for business interruption
• 無制限 — unlimited
• 時価 — market value

Words about what’s covered

• 対人補償 — bodily injury
• 対物補償 — property damage
• 車両補償 — car damage
• 人身傷害補償 — personal injury
• 自賠責保険 — compulsory automobile liability insurance

Plan names

• 選べる補償 — coverage you can choose
• 任意加入 — optional
• 標準補償コース／免責補償コース／安心補償コース — Basic / Safety / Super Safety Package
• 安心Wプラン — Double Protection Package
• レンタカー安心パック（RAP） — Rental car Assistance Pack
• フルサポートプラン／スタンダードプラン／ライトプラン — Full Support / Standard / Light Plan

Words that decide the NOC amount

• 自走し予定の店舗に返却 — driven back to the scheduled shop
• 自走できず／自走不可能 — unable to be driven
• 汚損 — dirt or damage

Words on documents

• 貸渡約款 — rental agreement
• 事故証明／交通事故証明書 — traffic accident certificate
• 示談 — settlement

Money words

免責額／自己負担額

The amount you pay yourself in an accident. On paperwork, the two are written side by side (Toyota Rent a Car’s guidance says 「自己負担する費用（免責額）」, “costs you pay yourself (deductible)”).

「免責額5万円」 means you pay up to 50,000 yen yourself. It doesn’t mean you’re protected up to 50,000 yen.

In English: deductible (Toyota Rent a Car).

免責補償

A system that means you don’t have to pay your own share (免責額) in an accident. It’s also written 「免責補償制度」 or 「免責補償コース」.

Some companies state clearly that it isn’t insurance (Nippon Rent-A-Car, Times Car Rental).

In English: Collision Damage Waiver (CDW) (Toyota Rent a Car, ORIX Rent a Car).

ノンオペレーションチャージ（NOC）

Money the renter pays to cover part of the car’s downtime, when the office can’t rent it out because it’s being repaired or cleaned. It’s charged separately from both your share and the repair cost.

You pay it even if you have 免責補償. To have it waived, choose a plan that covers NOC as well.

In English: Non Operation Charge (NOC).

営業補償／休業補償

A word that comes up in explanations of NOC. It means making up for the office’s loss while the car is out of action. NOC is the money you pay as this 営業補償.

In English: compensation for business interruption (Toyota Rent a Car), compensation for suspended use of the vehicle (Nissan Rent a Car).

無制限

It means there’s no upper limit on the amount covered. You often see it next to coverage for injury to other people and damage to other cars and property.

In English: Unlimited.

時価

The car’s value at that point in time. If the coverage for the rented car says 「時価まで」 (“up to market value”), it’s covered up to that value.

In English: Market value (ORIX Rent a Car).

Words about what’s covered

対人補償

Coverage for when you injure another person in an accident.

In English: Bodily injury (Toyota Rent a Car).

対物補償

Coverage for when you damage another car or property. It may come with your own share (免責額).

In English: Property damage (Toyota Rent a Car, ORIX Rent a Car).

車両補償

Coverage for the rented car itself. It may come with your own share (免責額).

In English: Car damage (Toyota Rent a Car), Vehicle (ORIX Rent a Car).

人身傷害補償

Coverage for injury to the people in the car.

In English: Physical disability (Toyota Rent a Car), Personal injury (ORIX Rent a Car, Times Car Rental).

自賠責保険

Insurance that every car in Japan must have (Ministry of Land, Infrastructure, Transport and Tourism). It only covers injury to other people, not damage to property.

The 対人補償 on a rental car includes this insurance (according to Toyota Rent a Car and Times Car Rental).

In English: automobile liability insurance (Toyota Rent a Car), Compulsory Automobile Liability Insurance (Times Car Rental).

Plan names

選べる補償

A term on Toyota Rent a Car’s Japanese pages, attached to 免責補償 and 安心Wプラン. It means you choose for yourself whether to take it.

任意加入

It means you decide for yourself whether to take it. On ORIX Rent a Car’s Japanese pages, it’s attached to 免責補償.

標準補償コース／免責補償コース／安心補償コース

Times Car Rental’s three tiers. 標準補償コース is just the coverage in the price, 免責補償コース also waives your share, and 安心補償コース waives NOC as well.

In English: Basic Package / Safety Package / Super Safety Package.

安心Wプラン

Toyota Rent a Car’s plan that adds a waiver of NOC to 免責補償. Its full name is 「トヨタレンタカー安心Wプラン」.

In English: TOYOTA Rent a Car Double Protection Package.

レンタカー安心パック（RAP）

ORIX Rent a Car’s plan that waives NOC.

In English: Rental car Assistance Pack (RAP).

フルサポートプラン／スタンダードプラン／ライトプラン

Nissan Rent a Car’s three tiers. ライトプラン is basic coverage only, スタンダードプラン waives your share, and フルサポートプラン waives NOC as well.

In English: Full Support Plan / Standard Plan / Light Plan.

Words that decide the NOC amount

自走し予定の店舗に返却

When, after an accident, you can drive the car yourself back to the office where you were due to return it. NOC is the lower amount (Toyota Rent a Car).

In English: Able to be driven / Driven back to the scheduled shop (Toyota Rent a Car).

自走できず／自走不可能

When you can’t drive the car yourself. At Toyota Rent a Car, it’s listed alongside 「予定の店舗に返却されなかった場合」 (“when the car isn’t returned to the scheduled office”), and NOC is the higher amount.

In English: Unable to be driven (Toyota Rent a Car), immovable (Nissan Rent a Car).

汚損

Getting the car dirty or damaging it. Smoking in a non-smoking car counts too (according to Toyota Rent a Car). It’s one of the reasons NOC is charged.

Words on documents

貸渡約款

The document that sets out the rules for renting the car. It’s also where things like the cases in which the coverage can’t be used are written.

In English: Rental Agreement (Toyota Rent a Car).

事故証明／交通事故証明書

A document in which the Japan Safe Driving Center certifies the facts of an accident, based on police records. It’s used for insurance claims.

In English: Traffic accident certificate (Japan Safe Driving Center), accident report (Toyota Rent a Car).

示談

Agreeing with the other party in an accident, by talking it over, on how to settle it. At some companies, the coverage can’t be used for a 示談 made without the company’s consent. Don’t agree to anything on the spot — contact the rental company first.

In English: settlement (Toyota Rent a Car), private settlement (Times Car Rental).

If you’re not sure

If you don’t understand a word on the paperwork, point to it and ask at the counter before you sign.

※ Coverage names and what they include, the amounts of your share and NOC, and how paperwork is written differ by company and can change. When you actually rent, check that company’s information and its rental terms (貸渡約款).

Official sources we checked (6)

・トヨタレンタカー：補償制度 (Toyota Rent a Car: Coverage, in Japanese)

・オリックスレンタカー：保険・補償制度 (ORIX Rent a Car: Insurance and coverage, in Japanese)

・タイムズカーレンタル：補償コースについて (Times Car Rental: About coverage options, in Japanese)

・日産レンタカー：補償プラン (Nissan Rent a Car: Coverage plans, in Japanese)

・国土交通省：自賠責保険・共済ってどんなもの？ (Ministry of Land, Infrastructure, Transport and Tourism: What is compulsory automobile liability insurance?, in Japanese)

・自動車安全運転センター：交通事故証明書 (Japan Safe Driving Center: Traffic accident certificates, in Japanese)

You got the fullest coverage on your rental car, so whatever happens, you pay 0 yen.

Think that, and you may end up paying where you didn’t expect to.

A full-coverage plan removes the cost to you. It doesn’t remove the promises you make when you rent.

There are three main times you pay.

1 You didn’t report it

2 You used the car outside the contract

3 Things that were never covered

All of them are easier to avoid if you know about them in advance.

1 You didn’t report it

Rental car companies tell you to report even small things to the police. In an accident, you report it to the police and contact the rental company too.

If you don’t report it, you may not be able to use your coverage. Nissan Rent a Car says that none of its coverage applies.

It’s the same when you don’t know who the other party is. Report hit-and-runs and break-ins to the police too (ORIX Rent a Car says a police report is required to use the coverage).

What to do in an accident is covered in “Rental Car Accident or Breakdown in Japan.”

2 You used the car outside the contract

When you use the car outside the contract — including the obvious ones, like driving after drinking — you may not be able to use your coverage. There are two that travelers often don’t notice.

One is who’s driving.

If someone who wasn’t registered as a driver at the counter drives, you may not be able to use your coverage. Register them, on the other hand, and you can take turns.

At Toyota Rent a Car, the people traveling with you can drive too, at no extra charge. At the counter, you show the licenses and passports of everyone who’ll drive. Registered drivers are covered the same way as the person who rented the car (ORIX Rent a Car, Times Car Rental).

You can take turns on a long drive, too.

The second is talking money with the other party after an accident.

Even if the other party brings up money, don’t agree to anything on the spot — contact the rental company first. That’s because some companies say coverage can’t be used for a settlement (示談) made without their consent (ORIX Rent a Car, Nippon Rent-A-Car, Budget Rent a Car, Times Car Rental).

If you want to keep the car longer, contact the company before you extend. If you have an accident while you’ve extended without telling them, you may not be able to use your coverage (Budget Rent a Car).

3 Things that were never covered

Even full-coverage plans leave some things outside their coverage. All of them are things you can prevent yourself.

Smoking and dirt

If you smoke in a non-smoking car, get the car dirty or leave a smell in it, you may pay NOC and other charges even with full coverage (Toyota Rent a Car’s 安心Wプラン, Nissan Rent a Car’s フルサポートプラン, Budget Rent a Car’s Safety Pack).

Putting in the wrong fuel

At some companies, the coverage can’t be used if you put in the wrong type of fuel (ORIX Rent a Car, Times Car Rental).

Before you fill up, check the characters on the nozzle. How to fill up is in “How to Get Gas in Japan.”

Keys

If the car is stolen after you left the key in it or left it unlocked, the coverage can’t be used (Toyota Rent a Car, Times Car Rental).

How things you can’t prevent yourself are handled differs by company. For example, some companies leave a property-damage accident involving only your car, with no other vehicle, outside their coverage (according to the national rental car association). If it’s on your mind, ask the company before you book.

Deciding how much coverage to get

The four things to weigh when deciding which tier to get are at the end of “Rental Car Insurance in Japan (CDW and NOC).”

Whether your card is enough is covered in “Does My Credit Card or Travel Insurance Cover a Rental Car in Japan?”

Before you set off, with the people riding with you

Report it. Use the car as the contract says. Know what isn’t covered.

Talk these three through with the people riding with you before you set off.

※ The conditions under which coverage can’t be used, the limit on your own share, and the services included in a plan differ by company and can change. When you book, check that company’s coverage information and its rental terms (貸渡約款).

Official sources we checked (8)

・全国レンタカー協会：レンタカーについてのご相談 (National rental car association: Questions about rental cars, in Japanese)

・全国レンタカー協会：レンタカーのご利用にあたって (National rental car association: Before you use a rental car, in Japanese)

・トヨタレンタカー：補償制度 (Toyota Rent a Car: Coverage, in Japanese)

・オリックスレンタカー：保険・補償制度 (ORIX Rent a Car: Insurance and coverage, in Japanese)

・タイムズカーレンタル：補償コースについて (Times Car Rental: About coverage options, in Japanese)

・日産レンタカー：補償プラン (Nissan Rent a Car: Coverage plans, in Japanese)

・Nippon Rent-A-Car：Insurance & Accident (in English)

・Budget Rent a Car：Compensation Plan (in English, PDF)

Your own credit card comes with rental car coverage.

So you don’t need the rental company’s coverage. Or maybe you’ll take theirs too, just in case.

If that’s what you’re thinking, there’s one thing worth knowing before you leave.

You don’t need to understand how all the coverage works. Just ask your card company (and your insurance company too, if you have travel insurance) the “Five things to ask before you leave” below, and write down the answers.

“Both, just in case” can make your card’s coverage disappear

Some credit cards issued outside Japan make it a condition in their terms that you decline the rental company’s 免責補償 (CDW).

Take the rental company’s 免責補償, and the card’s benefit disappears. That’s the rule.

So “I’ve got my card, but I’ll take the rental company’s 免責補償 too, just in case” doesn’t work with terms like these.

At Japan’s major rental companies, 免責補償 is your choice (Toyota Rent a Car calls it 選べる補償, “coverage you can choose”; ORIX Rent a Car calls it 任意加入, “optional”; and Times Car Rental doesn’t make it compulsory).

But some booking-site plans have 免責補償 built into the price from the start. In that case, declining it isn’t an option. If you plan to use your card, look at what’s in the plan before you book.

What the card looks at is usually “the car you rented”

Under those same terms, the card pays for theft of or damage to the car you rented. It doesn’t pay for the other person’s car, or for anyone’s injuries.

With a Japanese rental car, the coverage for other people and their cars is included in the rental price from the start (according to Toyota Rent a Car, ORIX Rent a Car, Times Car Rental and Nippon Rent-A-Car).

So your card and the rental company’s coverage may be looking after different things.

Your card may not work in Japan

The terms also say they don’t apply where prohibited by law, where they’d conflict with a clause in the rental agreement about the area, or where the rental company won’t accept them.

The terms themselves ask you to check with both sides before you leave. Ask not only your card company but also the rental company you’re renting from whether it can be used.

Five things to ask before you leave

Ask your card company these five things. Ask the rental company the first one too.

1 Can it be used for a rental car in Japan?

2 Do I need to decline the rental company’s 免責補償?

3 Does it pay Japan’s NOC (the charge for the car’s downtime)?

4 Are the other person’s car and people’s injuries outside what it covers?

5 What documents do I need to make a claim, and by when?

The third one can’t be answered from the wording of the terms alone. In Japan, NOC is a fixed amount set by each company, but the card terms mentioned above pay for charges the rental company has imposed and backed up. Check with your card company whether a fixed-amount NOC counts.

Once you have all five answers, you can choose for yourself, even with the coverage section right in front of you at the counter.

Travel insurance, your own country’s insurance, and booking-site coverage

If you have travel insurance, ask the insurance company the same five things. The UK government’s guidance for travelers also says that for rental cars, insurance is included in the price, and that you should check with the rental company what’s covered.

If you plan to use your own country’s car insurance, ask the rental company first. At Toyota Rent a Car, you can’t put other insurance on a rental car without the company’s consent.

Some booking sites have coverage from a company other than the rental company (ToCoo’s T.A.S. isn’t the rental company’s product, and it’s required when you book through ToCoo). How to tell them apart is in “Why the Same Car Has Several Prices.”

For the differences in displayed prices and coverage between booking sites, “Where Should You Book a Rental Car in Japan? How Much Is the Total?” presents the results of checking four booking sources under the same conditions.

Take your answers to the counter

Write the five answers in a note and keep it on your phone.

When you’re facing the coverage section at the counter, look at that note and decide whether to add the rental company’s coverage.

How the rental company’s coverage works is in “Rental Car Insurance in Japan (CDW and NOC),” and the times you pay even with full coverage are in “When Full-Coverage Rental Car Insurance in Japan Still Isn’t Zero.”

※ The conditions on credit card and travel insurance coverage, which countries and costs they cover, and how to make a claim differ from one card or insurance company to another, and they can change. Before you leave, check with each company and with the rental company you’re renting from.

Official sources we checked (5)

・トヨタレンタカー：補償制度 (Toyota Rent a Car: Coverage, in Japanese)

・トヨタレンタカー：貸渡約款 (Toyota Rent a Car: Rental terms, in Japanese)

・オリックスレンタカー：保険・補償制度 (ORIX Rent a Car: Insurance and coverage, in Japanese)

・タイムズカーレンタル：補償コースについて (Times Car Rental: About coverage options, in Japanese)

・Nippon Rent-A-Car：Insurance & Accident (in English)

When you book a rental car in Japan, partway through you’ll reach a screen where you choose your coverage (what people often call rental car insurance).

免責補償 (CDW), NOC, 安心パック (“peace-of-mind pack”). A row of unfamiliar words, and it’s easy to freeze right there.

It’s easier to sort out if you first look at it as three tiers.

Tier 1 The coverage that’s already in the price

Tier 2 免責補償, which waives what you pay yourself in an accident

Tier 3 A plan that waives NOC, the car’s “time off” charge

Some companies split it a little differently, but once you ask “which tiers does this cover?”, the choices on the screen start to make sense.

Tier 1 The coverage that’s already in the price

Even if you add nothing, basic insurance and coverage are included in the rental price (according to Toyota Rent a Car, ORIX Rent a Car, Times Car Rental and Nippon Rent-A-Car).

Injury to other people, damage to other cars and property, damage to the car you rented, and injury to the people in your car. It covers those four.

But there’s still your own share, the amount you pay yourself in an accident.

That’s 50,000 yen for other cars and property, and 50,000 yen for the car you rented (Toyota Rent a Car, ORIX Rent a Car and Times Car Rental, as of September 2026). For large vehicles such as buses, the amount for the rented car goes up.

Tier 2 免責補償, which waives your share

With 免責補償, you don’t have to pay either of those 50,000-yen amounts. In English it’s called CDW (Collision Damage Waiver).

Some companies go out of their way to say it’s “not insurance” (Nippon Rent-A-Car, Times Car Rental).

You’re not adding another layer of insurance — you’re buying a promise that you won’t have to pay your share. That’s the easiest way to think about it.

Tier 3 NOC, the car’s “time off” charge, is separate from CDW

Even with 免責補償, there’s still money you pay. That’s NOC (ノンオペレーションチャージ, Non Operation Charge).

While the car is out being repaired or cleaned, the rental company can’t rent it to the next customer.

The person who rented it covers part of that downtime. That’s NOC.

It applies not only to accidents but also to theft, and to getting the car dirty or damaging it (according to Toyota Rent a Car). It’s paid separately from both the repair cost and your share (as explained by the national rental car association).

It isn’t a fine. It’s a charge for the car’s downtime.

Each company sets its own amount. Some state clearly that it doesn’t change with how bad the damage is or how long the repair takes (Times Car Rental, Budget Rent a Car).

What decides the amount is whether you can drive the car yourself after the accident.

If you can drive it yourself back to the return location you booked, it’s 20,000 yen; if you can’t, it’s 50,000 yen (Toyota Rent a Car, ORIX Rent a Car and Nippon Rent-A-Car, as of September 2026). At some companies, the amount goes up with the size of the car (Times Car Rental, Nissan Rent a Car, Budget Rent a Car).

A Tier 3 plan is the one that waives NOC as well.

Every company calls it something different

Tier 3 plans go by a different name at each company.

At Toyota Rent a Car it’s 安心Wプラン (Double Protection Package), at ORIX Rent a Car it’s レンタカー安心パック（RAP） (Rental car Assistance Pack), at Times Car Rental it’s 安心補償コース (Super Safety Package), and at Nissan Rent a Car it’s フルサポートプラン (Full Support Plan).

Some companies split it differently. At Nippon Rent-A-Car, you add “ECO” on top of 免責補償 to waive NOC.

Some companies also include flat tires, hubcaps and even roadside assistance.

If the names confuse you, just look at which tiers each one covers. You can look up the words on the counter paperwork in “Rental Car Insurance and Coverage in Japan (CDW, NOC): A Mini Japanese Dictionary.”

You decide once, before you set off

Some companies don’t let you add or drop 免責補償 partway through the rental (ORIX Rent a Car, Nippon Rent-A-Car). At Times Car Rental, you choose when you book or when you pick up the car.

In other words, decide on the booking screen, and the coverage section at the counter won’t hold you up.

At the counter, you check the car for scratches together with the staff, and you’re off.

How much coverage to get: four things to weigh

There’s no right answer for which tier to get.

Instead, here are four things to weigh when you decide.

1 Could you pay the amount yourself?

Some companies show the most you’d pay yourself in an accident (as of September 2026).

At Toyota Rent a Car, it’s up to 150,000 yen with Tier 1 only, up to 50,000 yen with 免責補償 added, and 0 yen with 安心Wプラン. With the first two, the actual cost of things like tires is added on top. Even with 安心Wプラン, the cost of some accidents may not be waived.

At Nissan Rent a Car, it’s up to 250,000 yen with the ライトプラン (Light Plan), up to 100,000 yen with the スタンダードプラン (Standard Plan), and 0 yen with the フルサポートプラン (Full Support Plan).

Pick your tier by whether your travel budget could cover that amount.

2 Where you’ll drive

At some companies, coverage for flat tires and hubcaps comes with the plan that waives NOC (Toyota Rent a Car, Times Car Rental).

Some companies leave damage from driving on beaches, riverbeds or forest roads outside their coverage (ORIX Rent a Car).

Picture the roads you’ll drive, and think about what you’d be glad to have covered.

3 Will you drop the car off somewhere else?

Check the return location when you book.

4 The conditions on your card’s coverage

To see whether your own card is enough, go through “Five things to ask before you leave” in “Does My Credit Card or Travel Insurance Cover a Rental Car in Japan?”

The times you pay even with full coverage are in “When Full-Coverage Rental Car Insurance in Japan Still Isn’t Zero.”

For now, just these three tiers

Coverage in the price / 免責補償 to waive your share / a plan to waive the downtime charge.

Know those, and the booking screen won’t stop you.

※ Coverage names and what they include, your share, the NOC amount, and when you can sign up differ by company and by the size of the car, and they can change. When you book, check that company’s booking screen and the information at the counter.

Official sources we checked (7)

・トヨタレンタカー：補償制度 (Toyota Rent a Car: Coverage, in Japanese)

・オリックスレンタカー：保険・補償制度 (ORIX Rent a Car: Insurance and coverage, in Japanese)

・タイムズカーレンタル：補償コースについて (Times Car Rental: About coverage options, in Japanese)

・日産レンタカー：補償プラン (Nissan Rent a Car: Coverage plans, in Japanese)

・Nippon Rent-A-Car：Insurance & Accident (in English)

・Budget Rent a Car：Compensation Plan (in English, PDF)

・全国レンタカー協会：レンタカーについてのご相談 (National rental car association: Questions about rental cars, in Japanese)