Collision Damage Waiver (CDW)
To help you understand insurance and compensation for rental cars, we will explain the two systems of indemnification and NOC (non-operation charge) compensation.
In the event of an accident involving a rental car user, the car rental company may suffer business losses in addition to damages to people, property and the rented car.
Insurance covers damages to people and property but not the car rental company’s loss of business.
The system that exempts the customer from liability costs (deductible) within the scope of the insurance coverage is called indemnification and the system that exempts the customer from claims for business losses to the car rental company is called “NOC Compensation”.
This website provides information on indemnification in the plans of each car rental company.
The conditions of the insurance vary by plan, so please check the plan details carefully.
Even withCollision Damage Waiver (CDW), you will be responsible for any damage exceeding the insurance coverage.
Even with Collision Damage Waiver (CDW), the insurance may also not cover damages that were not reported to the police or that fall under the insurance policy’s exclusions, violations of the rental agreement or situations in which the customer is found responsible for the use or management of the vehicle.
Please note that insurance coverage also varies car rental company.
For more details, please contact the rental company directly.
About Collision Damage Waiver (CDW)
Without indemnification, you are responsible for any damages covered by the insurance, up to a certain amount.
This fixed amount is known as the deductible.
The amount of the deductible depends on the insurance coverage of the car rental company and the class of car you rent, but it can be quite expensive, ranging from 50,000 to 200,000 yen.
By also enrolling in what is known as Collision Damage Waiver (CDW) when renting a vehicle, the car rental company bears the cost of the deductible on behalf of the customer.
Each car rental company plan on this website has different conditions for enrolling in Collision Damage Waiver.
Some plans already include this coverage in the rental fee, while others allow customers to choose their own coverage.
Please check the details screen for the specific plan.
About NOC Compensation
When a car rental company’s loss of business is not covered by Collision Damage Waiver (CDW), the customer will always be billed separately.
This fixed amount to be paid by the customer is called a Non-Operation Charge (NOC).
This non-operation charge is not only eligible for accidents, but also for events that cannot be lent to other customers, such as damage to in-car equipment (burnt holes in the seat, etc.), theft, hit and run damage.
