You'll need an International Driving Permit and a valid license from your home country to rent a car in Japan

Japan's major rental companies — Toyota Rent a Car, Nippon Rent-A-Car, Orix, and Budget — all require the same core documents: your passport, a valid driver's license from your home country, and an International Driving Permit (IDP). The IDP is not optional. Without it, you cannot legally drive in Japan, and rental companies will refuse to hand over the keys. You obtain an IDP from your home country's automobile association before you travel — it typically costs between $15 and $30 and takes a few days to process by mail, or can be issued same-day in person at some locations.

Your home-country license must be valid for the duration of your stay. Some rental companies also accept a certified Japanese translation of your license, which you can obtain from the Japan Automobile Federation (JAF) or through your country's embassy in Japan, but this is a backup option, not a replacement for the IDP.

Key Takeaways

  • You must carry an International Driving Permit, your passport, and your home-country driver's license at all times while driving in Japan.
  • Rental rates vary widely by company and location, but expect to pay roughly $40 to $100 per day for a compact car, with significant markups at airport locations.
  • Japanese rental companies include collision damage waiver (CDW) in most quotes, but read the fine print because deductibles can be $1,000 or more.
  • Driving in Japan requires an international license plate sticker, which rental companies provide, and familiarity with left-side driving and different road signs.
  • Book directly with the rental company's Japanese website or through a major international broker like Rentalcars.com or Kayak to compare prices across locations.

Where to book and what prices actually look like

The four largest rental chains operate hundreds of locations across Japan, with desks at every major airport and in city centers. Toyota Rent a Car and Nippon Rent-A-Car dominate the market and typically offer the lowest base rates. Orix and Budget are also widely available. Prices fluctuate by season, location, and car class, but a compact sedan (the most common rental) runs roughly $40 to $60 per day in rural areas and $70 to $100 per day in Tokyo or Osaka. Airport locations charge 20 to 40 percent more than city-center branches for the same car.

Book through the rental company's English-language website directly, or use an international broker like Rentalcars.com, Kayak, or Autoslash, which aggregates rates across companies and locations. Booking a week in advance usually locks in better rates than walk-up rentals. Many companies offer discounts for advance payment, but read the cancellation policy — some non-refundable rates cannot be changed even if prices drop.

The quoted daily rate almost never includes fuel. You pick up the car with a full tank and return it full; if you return it empty, the company charges a premium per liter. Expressway tolls are not included either — you pay these separately using a prepaid card or cash at toll booths, or the rental company bills your credit card if you use an electronic toll system.

Insurance, damage waivers, and what happens if you hit something

Most rental quotes include a basic collision damage waiver (CDW), which covers damage to the rental car up to a deductible. That deductible is typically ¥100,000 to ¥150,000 (roughly $700 to $1,000), meaning you pay that amount out of pocket if there is an accident. You can reduce the deductible to zero by purchasing a premium CDW, which costs $10 to $20 per day and is worth buying if you are uncomfortable with the risk.

Third-party liability insurance — coverage for damage you cause to other vehicles or property — is mandatory in Japan and is included in all rental quotes. However, the coverage limit is often capped at ¥20 million (roughly $140,000), which is adequate for most situations but not unlimited. If you cause a major accident, your personal auto insurance from home may cover the gap, so check your policy before you travel.

If you are involved in an accident, call the rental company when ready and do not leave the scene. Police will file a report, and you will need the report number for the rental company's insurance claim. Minor damage (scratches, small dents) discovered at return time is typically covered under the CDW deductible. Major damage or injury claims can take weeks to resolve and may involve your credit card company if the rental company disputes the charge.

What to expect when you pick up the car

Rental desks at airports are open from early morning until late evening, but city-center branches have shorter hours — typically 8 a.m. to 8 p.m. The pickup process takes 15 to 30 minutes. You will show your passport, IDP, and home-country license; sign a rental agreement in English or Japanese; and review the car's condition with a staff member. They will point out any existing damage on a diagram, so photograph the car yourself before you leave the lot to protect yourself against false damage claims at return.

The rental company will provide a navigation system (car GPS) for an additional fee, usually $5 to $10 per day. This is worth the cost if you do not speak Japanese and do not have a phone plan with data in Japan. The GPS will have English-language voice guidance and maps. Alternatively, read offline maps of Japan to your phone using Google Maps or Maps.me before you arrive, and use your phone as a GPS with a car mount.

You will receive an international license plate sticker to display on the car, an expressway toll card or information about electronic tolls, and a parking permit if you are renting in a city. Ask the staff to show you how to operate the car's lights, wipers, and turn signals — Japanese cars have controls in different positions than North American or European vehicles.

Driving rules and road conditions you need to know

Japan drives on the left side of the road, and the steering wheel is on the right side of the car. If you come from a country that drives on the right, this will feel unnatural for the first hour or two. Expressways (toll highways) are well-maintained and clearly signed, but speed limits are strictly enforced by police and cameras. The limit is typically 100 km/h (62 mph) on expressways and 50 km/h (31 mph) in cities. Speeding fines start at ¥9,000 (roughly $60) and increase steeply.

Parking in cities is expensive and often requires a parking permit. Many hotels and accommodations include free parking, but street parking in Tokyo or Osaka can cost ¥500 to ¥2,000 per hour (roughly $3 to $14). Parking lots are common and clearly marked. Do not park illegally — your car will be towed, and retrieval is expensive and time-consuming.

Petrol stations (gas stations) are abundant and accept cash or credit cards. Unleaded regular fuel is standard. Convenience stores like 7-Eleven and FamilyMart do not sell fuel, so plan your refueling stops in advance on long drives. Winter driving in northern Japan (Hokkaido, northern Honshu) requires snow tires, which rental companies provide seasonally at no extra charge if you book in advance.

When renting a car makes sense versus other transport options

A rental car is useful if you are visiting rural areas, national parks, or multiple prefectures over several days. The Japan Rail Pass and local buses are cheaper and faster for city-to-city travel, but they do not serve remote mountain villages or coastal areas. If your itinerary is Tokyo, Kyoto, and Osaka, skip the rental — trains are faster and parking is a headache. If you are visiting Hokkaido, the Japanese Alps, or the Izu Peninsula, a rental car saves time and gives you flexibility.

Calculate the total cost: rental fee plus fuel, tolls, parking, and insurance. Compare this to the cost of trains, buses, and local taxis for the same trip. For a week-long trip covering 1,000 km (620 miles) across multiple regions, a rental car often costs less than point-to-point train tickets, especially if two or more people share the rental.

Returning the car and what to watch for

Return the car to the same location where you rented it, or to a different branch if the rental company allows one-way rentals (most do, but charge a fee of $30 to $100). Return during business hours — after-hours returns are not always available, and you may be charged an extra day's rental. Fuel up at a petrol station within a few kilometers of the rental location so the tank is full when you arrive.

The return inspection takes 10 to 15 minutes. Staff will check the car for damage, verify the fuel level, and review the mileage. If there is new damage, they will photograph it and explain the charge. Disputes over minor damage are common — if you disagree with a damage claim, ask for photographs and a written explanation before you sign anything. Your credit card company can dispute the charge later if you believe it is unfair.

Keep your rental agreement and all receipts (fuel, tolls, parking) for at least 30 days after return. If the rental company charges your card for damage after you leave Japan, you will need these documents to dispute the charge with your credit card issuer.

Frequently Asked Questions

Do I need to get an International Driving Permit if I'm only renting for a day?

Yes. Japanese law requires an IDP for any driving, regardless of duration. Rental companies will not rent to you without one. Obtain it from your home country's automobile association before you travel — it cannot be issued in Japan.

What if I get a speeding ticket or parking fine while renting?

The rental company will be notified by police or the parking authority, and the fine will be charged to your credit card on file. You are responsible for paying it. Fines typically arrive weeks after the violation. Do not ignore them — unpaid fines can prevent you from leaving Japan or renting a car again.

Can I rent a car if I'm under 25?

Most rental companies rent to drivers aged 20 and up, but charge a young driver surcharge of ¥1,000 to ¥3,000 per day (roughly $7 to $20). Some companies have a minimum age of 25 for certain car classes. Check the rental company's age policy when you book.

Is it cheaper to book through an international website or directly with the Japanese rental company?

Prices are usually similar, but international brokers sometimes offer discounts or bundled rates. Book on multiple sites and compare the total cost including all fees. Direct booking with the rental company can be simpler if you have questions, since you are dealing with one entity.

What happens if I break down or get into an accident?

Call the rental company's roadside information number when ready — it is on your rental agreement and on a sticker inside the car. They will arrange a tow truck or send a mechanic. For accidents, call police first, then the rental company. Do not admit fault or sign anything until the rental company's representative arrives.