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Japanese Apartment Life

The Beginner’s Guide to Car Rental in Japan 

2025-03-03

In Japan, cars drive on the left side of the road with the steering wheel on the right. Both drivers and cyclists are required to keep to the left, while pedestrians keep to the right side of the road. The legal driving age is 18 and speed limits generally average at 60km/h on regular roads and 100km/h on expressways. For more information on traffic rules in Japan, visit the official Japan Automobile Federation (JAF) website. 

Now, whether you’re a newly minted driver with a shiny new driver’s license itching to put your new skills to the test, or a tourist looking to embark on a road trip in Japan, you’re probably going to have to rent a car. Read on to find out how to do so in Japan.  

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Documents required 

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If you’re a local or permanent resident of Japan, then all you need to rent a car is a valid local driver’s license and a credit or debit card. If you’re a tourist, however, things get a little more complicated.  

To rent a car as a foreigner in Japan, you need to obtain an International Driving Permit, also known as an IDP. IDP’s are not issued in Japan so you need to have this done and dusted prior to your trip. The caveat to this is that Japan only recognizes IDP’s based on the 1949 Geneva Convention. Visit the UN’s website which lists the countries and regions that participate in the Geneva Convention to see if your country falls under the category. 

There are a few exceptions, however. If you happen to hail from the following countries then all you need is your driver’s license along with a Japanese translation of it, which you can obtain by making an appointment at one of JAF’s offices in Japan: 

  • Belgium 
  • France 
  • Germany 
  • Monaco  
  • Switzerland 
  • Taiwan 

More information on how to make an appointment to get your driver’s license translated can be found here. 

Along with either an IDP, or a translation of your driver’s license, non-locals also need to present their passport, and a valid credit card. IDP’s are valid in Japan for a year; this means that upon arriving in Japan, you’ll need to get an entry stamp in your passport. If you went through one of the automatic gates, simply ask a member of staff to stamp your passport after, explaining that you need it for the purpose of renting a car.  

Cost 

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The cost of renting a car in Japan is highly dependent on the following factors: 

  • What kind of vehicle you want 
  • Whether or not it’s peak season 
  • How long you want to rent the car for 
  • Where you’re renting the car from 
  • Whether or not you plan on returning it back to the same location  
  • If you need any extras like a child’s seat 
  • How far in advance you make your booking 

In general, depending on what kind of car you’re looking to rent, costs start at around: 

  • ¥5,000 per 24-hour period for a sub-compact car (1,000cc to 1,300cc) 
  • ¥7,500 per 24-hour period for a compact car (1,500cc to 1,800cc) 
  • ¥10,000 for a mid-sized car (2,000cc) 
  • ¥15,000 for a full-sized car (3,000cc) 
  • ¥20,000 for vans 

The prices usually include unlimited mileage, taxes, and a mandatory insurance fee of ¥1,000 per day, which typically covers damage, injury, and liability.  

Rental cars are generally supposed to be returned with a full tank of gas, otherwise, you may incur a fee. If you plan on returning your rental car to a different location, this may also incur a fee depending on how far the return location is from where you originally rented the car from.  

Lastly, many rental car companies in Japan offer options to rent extras such as child booster seats and snow tires, though if you’re renting a car during winter in one of Japan’s snowier regions such as Tohoku and Hokkaido, the snow tires will be offered free of charge.  

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Insurance 

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It probably comes as no surprise that insurance is compulsory when renting a car in Japan. Compulsory insurance, known in Japan as Automobile Damage Compensation Liability Insurance or jibaiseki, is necessary as it covers liability for injuries or deaths to third parties along with third-party property damage, and damage to the rental vehicle. This compulsory insurance is usually provided by the car rental company of your choosing.  

In addition to compulsory insurance, renters may also opt for buying Collision Damage Waiver (CDW). This is an additional option that protects the renter from paying for damage to the rental car and can be agreed upon with your car rental company of choice.  

More information on compulsory insurance for cars in Japan can be found here. 

Car rental companies 

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According to statista.com, as of March 31st, 2021, there are nearly 9.7 thousand car rental companies that offer passenger cars in Japan.  

Some of Japan’s major and leading car companies are as follows: 

  • Toyota Rent-a-Car 
  • Nippon Rent-a-Car 
  • Orix Rent-a-Car 
  • Nissan Rent-a-Car 
  • Times Car Rental 
  • Ekiren 

Along with offering the rental of passenger cars, some rental car companies also rent out large vans, buses, and Recreational Vehicles (RVs). 

If you prefer going with an international car rental company, some options include: 

  • Budget 
  • Avis 
  • Hertz 

Reservations can be made online for most car rental companies in Japan and the website usually has an English language option. If you find that you can’t make your reservation on their website, they usually have a phone number for reservations in English.  

One-way car rental 

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A one-way car rental is, as the name suggests, when you pick a car up from one location and then return it to another location. Depending on where you are, it can be within a city, between cities, between prefectures if in Japan, and even between countries if you’re say, in Europe, for example.  

The biggest benefit of a one-way car rental is that it can save you time and money from having to drive all the way back to your original pick-up location. It also gives you more leeway in your travel plans.  

That being said, many rental companies may charge you to return their rental car to another location and the extra charge may vary depending on distance. For example, no extra charges may be incurred if you’re dropping the car off at a different location in the same city, but you may be charged if you decide to drop the car off in a different prefecture. 

If you decide to go with Nissan Rent-a-Car, they offer one-way rentals with free mileage up to 20km. You can calculate the one-way drop-off fee on their official website. 

If you decide to go with Orix Rent-a-Car, they do offer this option but interestingly some of their rental sites don’t accept one-way drop-offs, so you’ll need to do your homework on where you can drop your rental car off if you rent with them.  

At Village House, there are no deposits, key money, renewal fees, or handling fees required (※). If you’re looking to save on initial costs, feel free to get in touch with us!  

※Depending on the contract terms and the results of the screening process, a security deposit may be required. 

Related articles:

  • Everything You Need to Know About Owning and Driving A Car in Japan 
  • A Guide To Parking Fees
  • Taking the Japanese Driving Test
  • Japanese Driving Test for Foreigners
Cher ProfilePhoto
CheR

Freelance writer with over 2 years of experience writing for the Village House Blog, ESL teacher, and digital nomad who has lived in countries including The Czech Republic, The UK, The U.A.E., Japan, and most recently, Georgia. Is constantly on the hunt for the best, most optimal apartment for remote work when not enjoying going to film festivals, concerts, and the theater.

2025-03-03
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The Beginner’s Guide to Car Rental in Japan  - Village Blog