Japan Rental Car Insurance – CDW / Excess / NOC
Japan Rental Car Insurance – CDW / Excess / NOC


May i know which company did you buy your travel insurance from? Is CDW under Vehicle Excess charge? Thanks a million for your help!

By Kelvin on May 3, 2015

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  • Kelvin says:


    May i know which company did you buy your travel insurance from? Is CDW under Vehicle Excess charge? Thanks a million for your help!

    • bumblebeemum says:


      I bought my insurance from a friend who does insurance. He looks into various options and finds the cheapest option that suits my needs. For example he has bought Great Eastern TravelSmart and Tenet Sompo Insurance TravelJoy for my last two trips.

      And yup, I think CDW and Vehicle Excess charge are talking about the same thing.

      • BC says:

        2 points to add :
        1) CDW insurance is covered by your own travel insurance’s “Car Rental Excess”. However, do note the coverage amount which ranges from $300 to $1500. Insurers will only compensate the driver, even if there are 2 named drivers who r both similarly insured. (ie if mum & dad both insured for $1k excess each, & the excess is $1.5k, the claim is still capped at $1k)
        2) More importantly, there is also the Non-Operating Charge (NOC) that could be payable under the car rental agreement. This NOC (ranges from jpy 30k to jpy 70k depending on vehicle & extent of damage) DOES NOT seem to be covered by our own travel insurance.

        • bumblebeemum says:

          Thanks for sharing. Yup, the CDW is capped at per car rental, regardless of the number of people insured. I never thought about the NOC charge though – thanks for highlighting it!

  • Ken says:

    Hi !

    Thanks for your detailed recent posts on the “Hokkaido” trip. Read much of your itineraries.

    Base on your write-up, are you able to advise if this trip schedule, in early October 2016, feasible.

    In addition, some car rental company state insurance as “Zero excess”, “No N.O.C coverage”, etc. What are the differences ? What will you recommend the car type for ‘5 pax.’ ? Thanks.

    Itineraries :

    i) Obihiro
    ii) Shiretoko
    iii) Kitami
    iv) Sounkyo & Daisetsuzan
    v) Asashikawa
    vi) Chitose


    • bumblebeemum says:

      The itinerary sounds perfect for early October. 🙂

      If I’m not mistaken, zero excess means full insurance coverage. ‘Excess’ refers to the amount of money you are liable to pay in case of damage before basic insurance takes care of the rest. So for e.g. if the excess is 100000yen and the car damage in the event of an accident is 200000yen, you will need to fork out 100000yen while the basic insurance covers the rest. So if the excess is zero means you pay nothing.

      N.O.C. refers to Non-Operational Charge. This is the amount of money you need to pay in the event the car cannot operate anymore during the course of the rental. It is on top of paying for the damages.

  • Jim Foo says:

    Hi Bumble Bee Mum,
    Your blog is of a great help for me to plan my on coming winter Tokyo/Hokkaido trip. Regarding the car rental, I’m planning to rent from Car Rental Hokkaido for my trip from Sapporo to Niseko to Noboribetsu. May I ask? Most of the travel insurance I see only covers the deductible portion. Is it that I still have to take up the CDW & NOC from the car rental company. Thank you for your kind advise

    • bumblebeemum says:

      If you do not want the hassle of dealing with compensations in the event of any accident, then you should take up the car rental company’s comprehensive coverage.

      I usually don’t get the additional coverage because my personal travel insurance can cover CDW (though I don’t think it covers NOC). In the event of accident, I would have to pay the company for the damages first, get paperwork from them to come back to Singapore to claim – which can be a hassle. But weighing the risk and cost of the comprehensive coverage, I just decided to opt out. It’s just a risk I was willing to take.

      • Jim Foo says:

        Dear Bumble Bee Mum,
        Thanks for the advise.

      • mdhu manning says:

        Hi great blog! Am planning a trip to Hokkaido in Oct. This is our planned itinerary:
        Arrive Sapporo 7oct – 2 nights. Air Bnb

        Oct 8 – drive to Otaru in morning..lunch..drive back.
        Explore Sapporo – Odori park/covered shopping area – dinner or go to Chitose out let mall

        Oct 9 check out
        Drive to Lake Toya..explore
        Drive to Noboribetsu – stay the night
        Drive to Furano – explore and stay the night? Or Drive to Beie?

        Oct 11-12 Drive to ashikawa
        Daisetsuzan National Park and Sounkyo Grand Ryokan

        Oct 13 – drive to Kushiro and stay 2 nights or stay 1 night and drive to Sapporo and stay 1 night

        Oct 15 fly to TYO

        Would you advise hiring the car via Tabiri now? They seem to be more cost effective!
        What about Times car Hire? They are also recommended?
        Do you think the ETC card is suitable for our journey?
        Do the firms make a fuss if you decline the insurance?
        Is NOC compulsory??

        Appreciate any advise!

        • bumblebeemum says:

          Oct 8: I don’t think you have time for both Otaru and Chitose outlet mall. Just choose one.

          Between Sounkyo and Kushiro, I recommend you spend a night at Lake Akan.

          A few of my readers have told me Tabirai is pretty good, no harm checking them out if they are cheaper than renting direct from the rental companies.

          Yup, I have used Times before. No issues with them.

          If your rental company can offer you an ETC card for a nominal fee without much deposit, I don’t see any harm in getting one. You do have some long travels on the toll roads to cover, though not everyday.

          Neh, the firms don’t make a fuss about insurance. I always tell them I don’t need the additional insurance and they are perfectly okay with it. NOC is what you need to pay in the event the car cannot operate anymore during an accident. You can purchase an insurance to cover that, but again the insurance for that is not compulsory.

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