Rental vehicles are insured, but vehicle insurance does not automatically remove the renter's financial responsibility. This page explains the difference between vehicle insurance, Collision Damage Waiver (CDW), repair costs and Non-Operation Charge (NOC), and why these may apply separately after an accident or vehicle damage.
Last reviewed: September 6, 2026These mechanisms work together, but they serve different purposes and should not be treated as interchangeable.
Sunrise Rentacar vehicles are commercially operated rental vehicles covered by applicable vehicle insurance. The insurance policy addresses eligible insured losses according to its terms, limits, deductibles and exclusions.
The existence of insurance does not mean that every consequence of damage becomes free of charge to the renter.
CDW is a contractual protection that may reduce certain financial responsibilities of the renter when an eligible accident or damage occurs.
CDW is not permission to damage the vehicle and does not override exclusions, prohibited use, reporting duties or other conditions of the rental agreement.
NOC relates to the commercial loss of use of a rental vehicle while it is unavailable because of damage, repair, recovery, inspection, cleaning or another occurrence attributable to the rental.
NOC is separate from the physical repair or replacement cost.
When you insure your own private vehicle, you are both the vehicle owner and the person who decides how to manage the consequences of a claim. A rental vehicle is different: it is a privately owned commercial asset temporarily entrusted to the renter under a rental agreement.
Insurance claims, repair periods and vehicle downtime can affect the rental company's insurance history, deductibles, future insurance costs, fleet availability and ability to serve other customers.
The existence of insurance does not transfer unlimited damage risk from the renter to the rental company.
An insurance policy and the rental agreement allocate risk differently. Insurance may cover an eligible insured loss, while the rental agreement determines what responsibility remains with the renter.
Depending on the circumstances, the renter may remain responsible for amounts such as deductibles, excluded damage, uninsured items, contractually fixed charges, repair or replacement costs, NOC, towing, recovery, administration or damage resulting from prohibited or negligent use.
Insurance paying an eligible claim does not automatically cancel the renter's contractual responsibility.
CDW changes the financial protection available to the renter. It does not change the renter's duty to care for the vehicle. Eligibility may be affected by the circumstances of the incident and by compliance with the rental terms.
The renter may report damage or loss, but does not set the price of the repair, replacement or contractual charge. Applicable amounts are determined by the rental agreement, published fee schedule, actual replacement requirements, inspection results, supplier pricing, parts, labor, professional estimates and other objective costs where applicable.
A price found independently on an online marketplace, auction site or retailer does not replace a contractual charge or the repair and replacement standard required by Sunrise Rentacar.
For items subject to a published fixed charge, the published contractual amount applies even if the renter finds a superficially similar substitute item at a lower retail price.
Fixed charges, replacement rules, repair criteria and other applicable amounts are published on our Fees & Charges page.
A damaged rental vehicle may cause two different economic losses: the cost of repairing the vehicle and the loss created while that vehicle cannot be commercially rented.
The physical repair bill pays for restoring the vehicle. NOC addresses the commercial effect of the vehicle being unavailable. A repair can sometimes be mechanically simple while the vehicle remains out of service for many days because the correct part is not locally available.
The applicable rental value depends on the specific vehicle involved. Vehicle rental values are published on the individual vehicle pages under Available Vehicles.
A front headlight is damaged. The vehicle may still move mechanically, but if the damaged lighting equipment no longer permits lawful and safe road use, the vehicle cannot be returned to rental service until repaired.
If the correct headlight is not available locally, obtaining the part may take approximately 3 to 15 days. The actual installation may take only a short time, but the vehicle can remain commercially unavailable while waiting for the required part.
Illustrative repair cost: ¥200,000
Vehicle unavailable: 14 days
Published rental value: ¥15,000/day
Potential loss of use: 14 × ¥15,000 = ¥210,000
In this example, the commercial loss of use can be comparable to or greater than the physical repair itself.
In an actual case, the rear hatch glass of a rental vehicle was completely broken. The required replacement assembly was not immediately available and took approximately three weeks to arrive.
Actual repair cost: approximately ¥220,000
Vehicle unavailable: approximately 3 weeks
Even though the damage involved a limited area of the vehicle, it could not reasonably be returned to normal rental service while waiting for the correct replacement part.
This illustrates why the price of the damaged component and the duration of commercial unavailability are separate considerations.
NOC is intended to address actual commercial loss of use, not to create an arbitrary penalty. Sunrise Rentacar considers the actual fleet situation and the circumstances of the incident.
If a suitable replacement vehicle is available and Sunrise can continue serving customers without losing rental capacity, that availability may be taken into consideration when determining NOC.
If no suitable replacement vehicle is available and the damaged vehicle's downtime results in a real reduction of rental capacity, NOC may be charged according to the applicable terms and the relevant vehicle's rental value.
Season alone does not determine whether a replacement vehicle is available. Even during periods of lower overall demand, a particular category or the entire available fleet may be fully booked.
CDW prices and deductibles vary by vehicle and vehicle type. The applicable conditions are displayed on each individual vehicle page and form part of the selected reservation conditions.
Fixed fees, replacement charges and other cost rules are published separately so that customers can review them before and during the rental.
Because vehicle insurance and your financial responsibility under the rental agreement are different. CDW may reduce certain amounts that would otherwise remain your responsibility when eligible damage occurs.
Insurance does not automatically make every type of damage free of charge to the renter. Deductibles, exclusions, uninsured items, contractual responsibility and other applicable costs may remain payable depending on the circumstances.
No. CDW applies according to its conditions. Prohibited use, excluded damage, failure to report an incident, unauthorized driving, damage made worse by continued use and other excluded circumstances may remain fully or partially the renter's responsibility.
Because repairing the vehicle and losing the commercial use of the vehicle are different losses. A vehicle may be unavailable for days or weeks while undergoing inspection, repair or reasonable parts procurement. NOC addresses that loss of commercial use when applicable.
No. The renter does not set repair, replacement or fixed contractual charges. A cheaper item found online does not replace the applicable published charge, actual replacement requirement or professional repair estimate.
Not necessarily. Actual fleet availability and the resulting commercial impact may be considered. However, availability is determined by the real fleet situation at the time of the incident, not simply by season or general demand.
This page explains the relationship between vehicle insurance, CDW, NOC and the renter's financial responsibility. For complete information about insurance coverage, accidents, vehicle damage, reporting requirements and claims, please also review the following pages.
Learn how insurance coverage applies to Sunrise Rentacar vehicles, including important conditions, limitations and responsibilities.
Understand the general responsibilities of the renter when an accident, collision or other vehicle damage occurs during the rental period.
Learn what happens when the rental vehicle is damaged, including reporting requirements, assessment of damage and applicable renter responsibilities.
Important rules about whether a damaged vehicle may continue to be driven and the renter's responsibility to avoid worsening existing damage.
Information about accidents involving another vehicle, person or property, including third-party claims and related responsibilities.
Review published fees and charges, or check the individual vehicle pages for rental rates, vehicle-specific CDW prices and applicable deductibles.
A rental vehicle is a commercial asset belonging to Sunrise Rentacar. Vehicle insurance, CDW, repair costs and NOC address different risks and may apply separately.
