[2025 Japan Car Rental Guide] Car Rental Company Recommendations | Self-driving Process | Insurance and Traffic Accident Response Details

Japan is the most popular tourist destination for Hong Kong people. Every year, many tourists choose self-driving tours, freely shuttle between bustling downtown and exploring hidden secrets. So what should you pay attention to when renting a car in Japan? How to deal with traffic accidents? Kwiksure compiled a guide for renting a car for a self-driving tour in Japan, including the detailed rental process, car rental company recommendations, how to deal with traffic accidents, and Japanese driving rules, to help you easily enjoy your self-driving trip.

Overseas car rentals must have an international license plate

To rent a car in Japan, the driver must have an international license. Travelers who have not yet applied for an international driving permit can apply in person at the counter, by mail or online. Travelers can also choose to make an appointment at an International Driving Permit Self-Service Kiosk, you can get an international license plate in as fast as one hour, and the international license plate is valid for one year. For detailed application procedures through different channels, please refer to the special topic on international license plates of Kwiksure.

When renting a car in Japan, in addition to the international license plate, you will also need to bring your travel passport, credit card, and original driver's license. Some rental car companies may require the driver to hold a formal driver's license for one year or more.

Japan Car Rental｜Point-of-care Rental Company

Once you have decided on your destination, you can start planning your self-driving tour route, including the number of days you will rent a car, where you will pick up and return the car, etc. When considering which Japanese car rental company to patronize, you can consider the following four factors:

1. Business scope of car rental companies

If the rental car company has enough branches, it will be easier for the driver to seek support and assistance. Large rental car companies usually have business coverage throughout Japan, while smaller rental car companies only provide regional services.

2. Diversity of car models

If the car rental company is opened by a Japanese car manufacturer, it will only provide cars of its own brand, but the models will be more complete; while car rental companies specializing in car rental business will have a richer variety of brands to choose from.

3. Car rental and other expenses budget

The cost of renting a car is affected by several factors, such as:

• Time period (whether it is tourist peak season)
• Region (more remote areas generally have fewer cars in stock)
• Car model (the higher the model, the higher the cost)
• Insurance (depending on the type of insurance)

The following are provided by Japan Tourism Agency. Average price reference for 24 hours with no mileage limit:

Other common self-driving expenses include:

• Fuel cost: Based on Global Petrol Price. According to the latest figures, the cost of driving a car in Japan is about ¥174 per liter.
• Highway fees: For some highways, you can purchase a fixed-rate toll pass, which allows you to use the highway within a specific range unlimited times within a specified period of time.
• Parking fee: Parking fees are usually higher in cities, while most suburban areas offer free parking. Also pay attention to whether the hotel will charge parking fees.

4. Service quality and support

Larger car rental companies can provide more comprehensive support, such as:

• Provide online or telephone booking services, eliminating the hassle of instant booking
• Some companies do not charge additional fees if the delay is less than one hour
• Staff can speak different languages such as Chinese and English

Japan Car Rental | 5 Japanese Car Rental Companies Recommended

Japan Car Rental | Self-driving Travel Insurance Guide

Compulsory Insurance

Japanese law requires that all cars on the road must purchase compulsory insurance to protect liability compensation in the event of third-party injury or death. Car rental companies usually provide this type of compulsory insurance, including compensation for third-party death and injury, compensation for third-party property damage, vehicle compensation, and compensation for passenger death and injury.

However, please note that even if the rental car company has purchased this type of insurance for you, in the event of an accident, the driver still needs to pay the insurance deductible to cover the cost of property loss to third parties and damage to the rental vehicle, which is 50,000 yen each, with a maximum total of 100,000 yen.

Collision Damage Waiver (CDW)

Drivers can choose to purchase this insurance when renting a car. If CDW insurance is purchased separately when renting a car, the above deductible can be waived up to a total of 100,000 yen.

It is also worth mentioning that some Hong Kong travel insurance policies already cover the deductible in the event of a car rental accident, so you can check whether the travel insurance you purchased already covers this loss. If so, there is no need to purchase CDW.

Non-Operation Charges (NOC)

After an accident, the driver may also have to pay compensation to the rental company for the operating losses caused by not being able to rent out the vehicle. Drivers can choose to purchase this insurance when renting a car, which will exempt them from paying this amount. Usually, if the driver can drive the vehicle to a designated rental store after an accident, they only need to pay 20,000 yen in compensation; if they cannot drive the car themselves and need to call a tow truck, they will have to pay 50,000 yen.

Japan car rental | Japan self-driving tour car rental, pick-up and return process

1. Rent a car

1. Decide on your destination and route
2. Select the car rental company, pick-up and drop-off location, date and time
3. Select car model and additional services
4. You can purchase insurance as needed
5. Fill in the driver's information, contact number, payment method, etc.
6. Confirm order and payment

2. Pick up your car

• You need to bring along when you pick up your car
• Reservation email confirmation
• Original passport, Hong Kong driver's license and international license plate
• credit card
• Rental car store membership card (if applicable)
• Carefully read the contents and regulations of the car rental contract, such as the car return regulations and fuel types, and sign it only after confirming it.
• Pay for car rental and additional insurance costs (if any)

• Carefully check the condition of the vehicle, such as any signs of collision or scratches, and confirm that the tires, headlights, water splashes, and anti-theft locks are functioning properly. Take photos and record them. Only sign the ‘Vehicle Damage Confirmation Form’ after understanding the condition of the vehicle.
• Declare other drivers (if any) and understand how to use the in-car equipment. If you are unsure, ask the staff to demonstrate
• Get dealer contact information and foreigner-specific driving signs

Car rental add-ons

• ETC card: Most Japanese highways use ETC cards instead of parking payments. Simply insert the ETC card into the car's ETC machine and the car will be automatically charged when it passes through the toll booth. Some highway tolls will even be discounted, similar to Hong Kong's EasyPass.

• GPS: If you are going to a remote area, GPS may be more convenient than phone navigation. You can rent a Chinese GPS navigation system.

3. Return the car

• Fill up the tank before returning the car and keep the receipt for the staff to confirm.
• Return the car to the designated location on time and show the rental agreement and car keys
• Check the condition of the car: pay attention to any scratches and take photos for record
• Settle toll road (ETC) fees: If you rent an ETC, the highway fees will be settled when you return the car

Car rental in Japan | What to do if you encounter an accident?

No matter how careful you are when driving, there is always a chance that you will get into a traffic accident. Here are some tips on how to deal with an accident:

1. Stay calm

After an accident, do not let panic take over; calm down as quickly as possible and handle the situation calmly.

2. Give priority to helping the injured

If someone is injured in a traffic accident, first rescue the injured. Move the injured to a safe place, such as the shoulder of the road. If necessary, call 119 for an ambulance and provide first aid as much as possible.

3. Contact the police immediately

After helping the injured, you should call 110 to report the incident and ask the police to come to the scene. However, please note that the local police may not understand foreign languages, so you can try to find nearby passers-by for help. If it involves emergency notification, public telephones can also be used free of charge.

4. Contact the car rental company and insurance company

After calling the emergency number, you will need to contact the car rental company and the insurance company. The car rental company will compensate and handle the accident follow-up according to the terms of the car rental contract. If you have purchased additional insurance, you will also need to contact the insurance company to report the incident and make a claim.

Japan Car Rental｜Must-Learn Driving Rules to Avoid Traffic Accidents

To avoid traffic accidents, in addition to driving carefully, you must also be familiar with Japanese traffic rules and traffic signs. Like Hong Kong, Japan has drivers on the right and drives on the left. Other driving rules are similar to those of other countries, but the following are more special:

• The traffic sign ‘止まれ’ means that the driver must come to a complete stop before the stop line and make sure there are no oncoming vehicles before continuing.
• ‘徐行’ means driving slowly, and is also a common traffic sign in Japan
• Children under 6 years old must sit in a child safety seat
• The speed limit in most areas is 60 km/h, and on motorways it is 100 km/h.
• Before crossing the railway tracks, you must stop at the stop line to check if there are any trains coming from either side.
• No parking is allowed on the roadside. You can only park in parking spaces. Vehicles must be parked in dedicated parking lots.
• Vehicles can turn right when the traffic light is green, but they must let the vehicles going straight ahead go first. They can only turn right when there are no vehicles.
• Pedestrians are given priority. You must give priority to pedestrians at zebra crossings without traffic lights.

Frequently asked questions

How much does it cost to rent a car in Japan?

According to Japan Tourism Agency, the daily rental fee for a typical small car (1,500 - 1,800 cc) is approximately ¥9,000 - ¥13,500, or approximately HK$475 - HK$712 per day.

What should I prepare for driving in Japan?

When driving in Japan, travelers must bring a valid international license plate, the original driver's license, a tourist passport, and a credit card to pay for the rental car.