Learn About CDW Coverage
You’ve finally arrived in Okinawa for a long-awaited trip. Many of you are probably planning which sightseeing spots to visit by rental car.
However, one of the most important things when using a rental car is understanding insurance and CDW (Collision Damage Waiver) coverage.
No matter how carefully you drive, the risk of being involved in an accident can never be completely eliminated.
To enjoy a safe and worry-free trip in Okinawa, make sure to use this guide to build a solid understanding of rental car insurance and coverage.
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Types of Insurance Coverage
First, let’s explain the basic insurance coverage for rental cars.
The main types are: basic insurance coverage, CDW (Collision Damage Waiver), and NOC (Non-Operation Charge) coverage.
Basic Insurance Coverage
The basic insurance coverage is included in the rental car fee in advance.
It generally includes automobile insurance and compulsory automobile liability insurance as part of the base price. In the event of an accident, compensation will be paid by the insurance company.
This coverage is typically divided into the following four categories:
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Property Damage Coverage: When you damage someone else’s property, such as a house, guardrail, or signboard.
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Vehicle Damage Coverage: When you damage or dirty the rental car you are using.
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Bodily Injury Liability Coverage: When a pedestrian is injured or killed due to your driving.
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Personal Injury Coverage: When the driver or passengers are injured.
For example, in the case of passenger injury, companies such as ORIX Rent-A-Car and Times Car Rental provide coverage up to approximately 30 million yen per person, while Nissan Rent a Car offers up to around 50 million yen per person.
However, please note that you are still required to pay a deductible (excess fee). The deductible is the amount you must cover out of pocket and is not covered by the insurance company.
CDW (Collision Damage Waiver) – Coverage of the Deductible
Many rental car companies offer an optional insurance system called Collision Damage Waiver (CDW).
As the name suggests, it is commonly abbreviated as CDW.
By paying an additional fee before using the rental car, this coverage eliminates the customer’s deductible (out-of-pocket expense) in the event of an accident.
In other words, CDW is an optional paid service that reduces your financial responsibility to zero for the deductible portion.
On the other hand, if you do not purchase CDW, you will be required to pay the deductible yourself in the event of an accident.
Non-Operation Charge (NOC) Coverage
In the event of a major accident with a rental car, the vehicle may be severely damaged to the point where it cannot be used.
From the rental company’s perspective, this results in a significant loss.
In such cases, the customer is required to pay a business compensation fee to the rental car company.
This fee is known as the Non-Operation Charge (NOC).
In simple terms, it is a charge to compensate for the income the rental company loses while the vehicle is being repaired or cleaned and is unavailable for rental.
It is important to note that NOC is not covered even if you purchase CDW (Collision Damage Waiver).
So how much does NOC actually cost? Let’s take Nippon Rent-A-Car as an example. The amount of NOC varies depending on the level of damage to the vehicle.
NOC may be applied not only in the event of an accident, but also in cases such as smoking inside a non-smoking vehicle, or spilling drinks or food that results in significant interior damage or cleaning requirements.
The coverage that waives this out-of-pocket NOC payment is called NOC coverage.
In other words, NOC coverage is a paid optional add-on that is not included in the basic rental fee.
Price Range
From here, we will explain the typical pricing of CDW and NOC coverage, based on information from each rental company’s official website.
CDW Price Range
| Times Car Rental | CDW Coverage Plan | 1,100¥ |
| Nippon Rent-A-Car | CDW Insurance Fee | 1day 1,100¥～2,200¥ |
| ORIX Rent-A-Car | CDW (Collision Damage Waiver) Plan | 1day 1,100¥~2,200¥ |
| Nissan Rent a Car | Standard Plan (Basic Coverage Plan) | 1,650¥ ~2,750¥ |
(Actual prices may vary depending on the rental company’s official website.)
However, please note that CDW is not a system that can be used unconditionally by everyone.
In some cases, coverage may not apply if the driver violates traffic laws—such as not wearing a seatbelt or running a red light—or if they have a history of previous traffic accidents.
NOC Price Range
As mentioned earlier, NOC refers to the fee that customers must pay to the rental car company when the vehicle is damaged or significantly soiled.
So how much does NOC coverage cost, which waives this payment?
Below, we will introduce several examples of rental car plans that include NOC coverage from different rental companies.
| Times Car Rental | Peace of Mind Coverage Plan |
CDW (¥1,100) + ¥1,100 = Total ¥2,200 |
| Nippon Rent-A-Car | NOC Coverage (ECO Plan) | ¥440 per day |
| ORIX Rent-A-Car | Rental Car Peace of Mind Package (RAP) | Approximately ¥660 to ¥1,320 |
| Nissan Rent a Car | Full Support Plan | ¥550 per day (added to the Standard Plan fee) |
Summary
Insurance coverage options are, of course, paid add-ons. However, accidents and other issues can happen unexpectedly at any time.
Once something happens, it may already be too late if you are faced with a large financial burden.
For this reason, it is recommended to consider insurance coverage as part of your risk management strategy and enroll in the available protection plans whenever possible.
“Where should I rent a car for the first time?”
For beginner drivers, we recommend GO!GO!TOUR.
You can enjoy affordable rental car plans at great prices, and one-way drop-off is available for free. In addition, all rentals come with reliable insurance and coverage services for peace of mind.
If you’re not sure where to start, why not consider GO!GO!TOUR Rental Car?
📌 Okinawa travel made easy with GO!GO!TOUR
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- 🚗 Okinawa Car Rental Booking
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