Insurance is the topic first-time drivers in Guam ask us about most. Here are the answers to the most common questions about insurance and coverage at Japan Rent-A-Car.
Q. Is any insurance included automatically?
Yes. Every rental rate includes liability protection (LP), which covers injuries to other people and damage to their vehicles or property.
| Bodily injury | Per person | $100,000 |
| Per accident | $300,000 | |
| Property damage | Per accident | $50,000 |
Q. Should I add extra coverage?
It’s a good idea, just in case. LP covers other people, not repairs to the car you are renting. Without coverage, you would pay the full repair cost after an accident. Guam drives on the right, and the traffic rules may differ from what you’re used to, so coverage lets you drive with peace of mind, especially on your first visit.
Q. What is the difference between CDW, ZDW and NOC?
CDW (Collision Damage Waiver)
Covers repairs to the rental car (up to $50,000) so that you pay no more than the $1,000 deductible. It applies to collisions between two vehicles when both have a driver. A police accident report is required, and if repairs cost $1,000 or less, you pay the actual cost.
| AS / A class | $17.00 / 24 hrs |
| RV / F / W / LA class | $22.00 / 24 hrs |
ZDW (Zero Deductible Waiver)
An add-on to CDW that waives the $1,000 deductible as well. It is available only with CDW. Price: $10.00 / 24 hrs.
NOC (Non-Operation Charge Waiver)
If the car needs repairs after an accident, a Non-Operation Charge applies to cover the time it can’t be rented ($250 if it can still be driven and rented out, $400 if not). NOC waives this charge. Price: $7.00 / 24 hrs.
Q. What should I do if I have an accident?
Always report it to the police and get an accident report number. No coverage applies to accidents not reported to the police right away at the scene. Write down the other car’s license plate number and report the accident to us as well (CDW does not apply without a report).
An accident processing fee of $150 applies to every accident, regardless of fault.
It covers obtaining the police report and issuing certificates and handling paperwork for insurers, repair shops and other parties.
Q. What isn’t covered?
You pay for any amount above the coverage limits, accidents excluded by the insurance terms, accidents or use that violate the rental agreement, losses from theft, and damage for which no police report can be obtained. Specifically:
Not covered by any option (regardless of fault)
- Reckless driving, drunk driving, or using a phone or other device while driving.
- Damage to windows.
- Theft of the car, vandalism, and stolen belongings.
- Accidents or damage caused by a driver not listed on the rental agreement.
- Traffic fines and the related service charge ($100).
- Any new scratch or damage found at return, however small, incurs the accident processing fee ($150).
- Towing costs after an accident.
- Leaving the scene of an accident.
- Damage to or loss of tires, wheels, wheel covers or keys, and the related service charges.
- Accidents or damage not reported to the police right away at the scene (no accident report number).
- Damage from typhoons or other natural disasters.
When CDW does not apply
- Reckless driving, driving on hazardous roads, or driving while using a phone or other device.
- Hitting an object while driving, or new damage that occurs while the car is left unattended.
- The car is a total loss due to your negligence.
- The car is stolen.
- The accident was not reported to us.
- The other car’s license plate number was not recorded, or the vehicle inspection had expired.
- The other driver does not have a valid license.
- Driving under the influence of alcohol or illegal drugs.