Rental Car Insurance in Japan
When renting a car in Japan, rental fees generally include insurance and coverage. This means that if you are involved in a traffic accident while driving a rental car, you will receive a certain level of compensation. However, the coverage included in the basic rental fee may be minimal, depending on the rental car company, and it might not be sufficient to handle accidents or breakdowns.
This article explains the insurance coverage provided by rental car companies.
Is Insurance Included with Rental Cars?
Since rental car companies are required to provide insurance, it is included in the rental fee. However, if an accident occurs, the renter may still be responsible for certain payments. The specifics of what is covered, whether or not compensation is provided, and the amount of payment required vary depending on the rental car company.
Many renters assume that they do not need to purchase additional insurance options. However, since rental cars are different from the ones you usually drive, accidents are more likely to happen. Considering the potential for high costs in the event of an accident, purchasing additional insurance is highly recommended.
Moreover, budget rental car companies often provide only the minimum required coverage, so extra caution is necessary.
Examples of Limited Coverage
The minimum coverage required by law for rental car businesses is as follows:
- Bodily Injury Liability: At least 80 million yen per person
- Property Damage Liability: At least 2 million yen per accident
- Personal Accident Insurance: At least 5 million yen per person
In Japan, most personal auto insurance policies offer unlimited coverage for bodily injury and property damage. However, some budget rental car companies may only provide the minimum required coverage.
Therefore, when choosing a rental car in Japan, it is essential to thoroughly check the insurance details and clarify any uncertainties with the rental company beforehand.
Is Roadside Assistance Available?
Whether roadside assistance is available depends on the rental car company. Some companies provide it, while others do not. Since roadside assistance can be used in emergencies like the ones listed below, it is recommended to choose a rental car company that offers this service.
- Towing the vehicle in case of an accident
- Restarting a dead battery
- Refueling in case of running out of gas
- Unlocking the car if the keys are locked inside
- Assistance with a flat tire, etc.
At ASAHI MOTORS Rent a Car, roadside assistance is included along with comprehensive insurance coverage for unlimited bodily injury and property damage.
For more details, click here!
Do You Need Insurance for Each Driver?
When renting a car, there may be multiple drivers rather than just one. If you plan to switch drivers during a long trip, all potential drivers must present their driver’s licenses to the rental car company in advance. Even if some members are not present at the time, copies of their licenses must be submitted.
One-Day Auto Insurance Does Not Apply
Some people may think of one-day auto insurance when considering rental car insurance. However, rental cars are not covered under one-day auto insurance policies. This is why the coverage provided by the rental car company is so important.
While there are a few exceptions, one-day auto insurance is generally intended for borrowing cars between individuals, so keep this in mind.
Final Thoughts
Insurance coverage and services vary significantly between rental car companies. Therefore, when renting a car in Japan, it is essential to check the coverage details, deductible amounts, and whether roadside assistance is included.
To enjoy a safe and stress-free drive, choose the right insurance plan!
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