JapanLiability for rental car accident?
In Japan, the driver of a rental car is generally liable for damages caused in an accident, unless the rental company was negligent in vehicle maintenance or failed to confirm the driver’s license validity.
What the Law Says
Japanese law places primary responsibility for traffic accidents on the driver, including when driving a rented vehicle. Liability depends on fault, insurance coverage, and compliance with road laws.
Under the Road Traffic Act, anyone operating a motor vehicle must hold a valid Japanese driver’s license (or approved foreign license) and drive safely. Rental companies must verify license validity before handing over a vehicle.
The Automobile Damage Compensation Security Act mandates compulsory third-party liability insurance (Jibaiseki Hoken) for all vehicles—including rentals—with minimum coverage of ¥120 million per accident for bodily injury.
If an accident occurs, the driver is personally liable for damages beyond insurance limits or if they violated traffic laws (e.g., speeding, distracted driving). The rental company is only liable if it failed in its duty—such as renting to an unlicensed driver or providing a defective vehicle.
Statutory TextNo person shall drive a motor vehicle on a road unless he/she holds a driver’s license issued under this Act or a foreign driver’s license recognized under Article 107-2.
— Road Traffic Act, s. 8 — Driving without license
Statutory TextOwners of motor vehicles used on roads shall enter into compulsory insurance contracts covering liability for bodily injury arising from use of the vehicle.
— Automobile Damage Compensation Security Act, s. 3 — Compulsory insurance obligation
Statutory TextThe right to claim compensation under this Act shall be extinguished after the expiration of three years from the time the victim or his/her legal representative becomes aware of the damage and the identity of the perpetrator.
— Automobile Damage Compensation Security Act, s. 16 — Limitation period
What to Do
Stop safely and check for injuries; call 119 (ambulance/fire) and 110 (police) immediately.
Report the accident to police within 72 hours—even for minor incidents—to comply with Road Traffic Act requirements.
Notify the rental company and your insurer within 24 hours; provide photos, witness info, and police report number.
Keep all medical receipts, repair estimates, and correspondence—these support claims under compulsory or voluntary insurance.
Consult a licensed Japanese attorney if liability is disputed or damages exceed ¥120 million.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.