Rental Car Insurance in Japan: Which Plan Should You Choose? | Omachi Rent a Car
Be VillageWhen you book a rental car, one of the first decisions you'll face is which cover plan to add. Omachi Rent a Car offers three clearly structured plans — A, B, and C — each covering a different combination of risks. Once you understand what each one does, choosing becomes straightforward.
This guide explains each plan using real numbers and accident scenarios, so you can make a confident decision before your trip to the Northern Alps.
📋 In This Article
What's Included in the Base Rate (All Plans)
Regardless of which plan you choose, the following cover is included in every rental at no extra charge. You don't need to arrange separate car insurance for Japan.
| Cover type | Coverage |
|---|---|
| Third-party injury liability (対人補償) | Unlimited |
| Property damage liability (対物補償) | Unlimited — no excess |
| Personal accident (人身傷害補償) | Up to ¥30 million per person |
| Vehicle damage (車両補償) | NOT covered in base rate |
| Roadside assistance (ロードサービス) | Up to ¥150,000 per incident |
⚠️ Key point: vehicle damage is not covered in the base rate
Third-party injury, property damage (with no excess), and personal accident cover are all included. But damage to the rental car itself is not covered under Plan A. If the rental vehicle is scratched, dented, or worse, you're personally liable for the repair costs — unless you've added Plan B or C.
Also note: all cover applies to drivers aged 21 and over only.
What Is NOC and How Much Does It Cost?
NOC (Non-Operation Charge / ノン・オペレーション・チャージ) is one of the most misunderstood concepts in Japanese rental cars. It's not part of the insurance system — it's a separate operational compensation fee.
When a rental vehicle needs repairs after an accident, the company can't rent it out during that time. NOC compensates for that lost rental revenue. It applies on top of any repair costs — and it applies even if you have vehicle damage cover (Plan B).
| Situation | NOC amount (tax included) |
|---|---|
| Vehicle can still be driven to the shop after the incident | ¥55,000 |
| Vehicle requires towing (cannot be driven) | ¥110,000 |
⚠️ Plan B covers repairs but NOT NOC
This is the most common misunderstanding. If you have Plan B and have an accident, your vehicle repair bill is ¥0 — but NOC (¥55,000 or ¥110,000) is still charged on top. To have NOC waived as well, you need Plan C.
Plan A vs B vs C — Full Comparison
| Plan A Base cover only | Plan B + Vehicle damage | Plan C + Vehicle damage & NOC waiver | |
|---|---|---|---|
| Additional daily rate | ¥0 | ¥3,300/day | ¥5,500/day |
| Vehicle repair costs | Not covered | Covered | Covered |
| NOC (operational compensation) | Charged | Charged | Waived |
💡 The three plans in plain language
· Plan A: Base cover only. If the rental car is damaged, you pay repair costs + NOC in full
· Plan B: Adds vehicle repair cover. You pay ¥0 for repairs, but NOC (¥55,000–¥110,000) still applies
· Plan C: Adds vehicle repair cover AND waives NOC. Your out-of-pocket cost in the event of an accident: ¥0
Accident Cost Simulations by Plan
Here's how the numbers play out in two realistic scenarios.
Scenario 1: You clip a post in a car park. The rental car is scratched. You can drive it back yourself.
Vehicle repair cost: ¥80,000 | Vehicle status: driveable
| Cost | Plan A | Plan B | Plan C |
|---|---|---|---|
| Vehicle repair (¥80,000) | Your liability ¥80,000 | Covered ¥0 | Covered ¥0 |
| NOC (driveable) | ¥55,000 | ¥55,000 | ¥0 (waived) |
| Total out of pocket | ¥135,000 | ¥55,000 | ¥0 |
Scenario 2: You skid on a mountain road. The car cannot be driven. Towing is required.
Vehicle repair cost: ¥200,000 | Vehicle status: requires towing
| Cost | Plan A | Plan B | Plan C |
|---|---|---|---|
| Vehicle repair (¥200,000) | Your liability ¥200,000 | Covered ¥0 | Covered ¥0 |
| NOC (towing required) | ¥110,000 | ¥110,000 | ¥0 (waived) |
| Total out of pocket | ¥310,000 | ¥110,000 | ¥0 |
※ Third-party injury and property damage are covered by base insurance (unlimited, no excess) in all plans. The figures above show only vehicle repair and NOC costs.
Which Plan Should You Choose?
Plan A may be sufficient if:
- You drive frequently and have strong confidence in your abilities on unfamiliar roads
- You're only driving short distances in town or on well-maintained flat roads
- You could comfortably cover ¥55,000–¥310,000 in unexpected costs if something went wrong
Plan B is a middle option if:
- You want vehicle repair costs covered but are comfortable accepting NOC risk (max ¥110,000)
- You're confident about driving but want protection against repair bills from minor incidents
Plan C is recommended if:
- 🏔️ You're driving to Ogizawa (Kurobe Dam) or other mountain routes — tight switchbacks, unfamiliar road conditions, and narrow lanes require extra alertness
- ❄️ You're visiting in winter or spring — all Omachi Rent a Car vehicles have winter tires as standard, but compacted snow and black ice remain real risks
- 🌏 You're an international visitor unfamiliar with Japanese roads — Japan drives on the left, road signs are often Japanese-only, and mountain road etiquette differs from most countries
- 👨👩👧 You're travelling as a group or family — more occupants, more distraction, more reason to have full cover
- 💰 You want a known, fixed cost with zero unexpected liability — ¥5,500/day for complete peace of mind
✅ Our recommendation
For most visitors — especially those heading to Ogizawa, driving in winter, or unfamiliar with Japanese roads — Plan C (+¥5,500/day) gives you complete cover. For a 3-day trip, that's ¥16,500 to eliminate all vehicle and NOC liability entirely.
When Cover Does Not Apply
All plans — including Plan C — are void in the following circumstances:
- 🚫 Driving under the influence of alcohol or drugs
- 🚫 Driving without a valid licence
- 🚫 Failure to report the accident to police
- 🚫 Violation of rental terms (unauthorised extension, sub-letting the vehicle, etc.)
- 🚫 Deliberate damage
- 🚫 Private settlement with the other party without insurer involvement
- 🚫 Driver aged under 21 years old
In any of these cases, all repair costs and NOC become your full personal liability, regardless of which plan you selected.
What to Do If You Have an Accident
- Ensure safety and assist any injured person — call 119 (ambulance) if there are injuries
- Call the police: 110 — reporting any traffic accident to police is legally required in Japan under the Road Traffic Act, including minor property damage. Failure to report invalidates your Plan B/C cover
- Contact Omachi Rent a Car immediately — report the location, nature of the incident, and vehicle condition. We'll guide you through next steps
- Do not settle privately with the other party — any informal agreement made without insurer involvement may void your cover. The rental company and insurer will manage the resolution
⚠️ Report all damage — even small scratches
Any damage discovered at return — including minor scratches or dents — will result in a repair assessment and potential NOC charge. If you notice any damage during your rental, report it to us immediately rather than hoping it goes unnoticed at return.
Frequently Asked Questions
Q. Is vehicle damage cover included in the base rate?
A. No. Plan A (the base rate, no extra charge) does not include vehicle damage cover. If the rental car is damaged, repair costs are your personal liability under Plan A. Add Plan B (+¥3,300/day) or Plan C (+¥5,500/day) to cover vehicle repair costs.
Q. What's the difference between Plan B and Plan C?
A. Both plans cover vehicle repair costs. The difference is NOC. Under Plan B, NOC (¥55,000 if driveable / ¥110,000 if towing required) still applies after an accident. Under Plan C, NOC is waived. Plan C adds ¥2,200/day over Plan B for that NOC waiver.
Q. What is NOC exactly?
A. NOC (Non-Operation Charge) is an operational compensation fee charged to the rental company when a vehicle needs repair. Because the vehicle is unavailable for rental during the repair period, NOC compensates for the lost rental income. At Omachi Rent a Car: ¥55,000 (tax included) if the vehicle is still driveable; ¥110,000 (tax included) if towing is required. NOC is separate from all insurance and repair costs.
Q. Is there an excess on property damage (hitting someone else's car)?
A. No. Property damage liability at Omachi Rent a Car is unlimited with no excess. If you damage another person's vehicle or property in an accident, the base insurance pays in full with no contribution from you (subject to the standard exclusions).
Q. Is there an age restriction on the cover?
A. Yes. All insurance and cover plans apply to drivers aged 21 and over only. Drivers under 21 are not covered under any plan.
Q. My travel insurance or credit card covers rental cars — do I still need Plan B or C?
A. It depends on your policy. Some travel insurance and premium credit cards include rental car excess or damage waiver. Check: does it cover Japan specifically? Does it cover vehicle damage costs? Does it cover NOC? Most third-party policies do not cover NOC. When in doubt, Plan C is the safest choice.
Book Your Rental Car at Omachi Rent a Car
Now that you understand the three plans, you can make a confident choice at booking. For most visitors to the Northern Alps — especially those driving mountain roads, in winter, or unfamiliar with Japan — Plan C gives you complete cover for ¥5,500 per day.
For current rates and full plan details, visit our Cars & Deals page. Any questions about which plan fits your itinerary — just ask when you book.
🚗 Omachi Rent a Car
📍 Inside Takenoya Inn, Omachi City, Nagano — 2-minute walk from Shinano-Omachi Station
🕐 For hours and rates, visit our Cars & Deals page
💳 Online credit card payment only (VISA / Mastercard / AMEX / JCB / Diners Club)
How it works: ① Submit booking form → ② Confirmation email with payment link → ③ Pay online → ④ Pick up your car at our shop
Summary
- The base rate includes third-party injury (unlimited), property damage (unlimited, no excess), personal accident (¥30M/person), and roadside assistance (¥150K/incident) — but NOT vehicle damage cover
- Plan B (+¥3,300/day) adds vehicle repair cover. If the car is damaged, repairs are ¥0. But NOC (¥55,000–¥110,000) still applies
- Plan C (+¥5,500/day) adds vehicle repair cover AND waives NOC. Your total out-of-pocket cost in any accident scenario: ¥0
- NOC is ¥55,000 (driveable) or ¥110,000 (towing required) — it applies to Plan A and Plan B; only Plan C waives it
- All cover applies to drivers aged 21 and over only
- Cover is void for drink driving, no police report, driving without a licence, or violation of rental terms
Safe driving — and enjoy the Northern Alps.
