Cost of secondary (voluntary) car insurance in Tokyo?

[jamessmith112]

Hi everyone,

I'm in my 40s and in the process of converting my foreign drivers license, so I don't yet have any driving history in Japan.

I'm trying to figure out the ballpark cost of secondary car insurance here. I'm considering a used (CPO) sports car, maybe around 5-7 million yen.

I read that it's cheaper in Japan vs. other countries but I've never seen concrete numbers.

E.g., is it closer to 100,000円 per month or 100,000円 per year? (both could be possible in my home country depending on the type of car, coverage, location, deductibles, etc.)

Thanks for any help.

 

[fancyface]

@jamessmith112 Beginner license, no insurance history, and sports car - I am guessing 150,000/yr. That's about what I paid in similar circumstances (albeit 20 years ago).

With gold license and clean history, probably half that if not less.

 

[jamessmith112]

@fancyface Thank you. I just tried an online calculator as someone suggested and the quotation indeed started at around 150,000/yr (depending on the options) so your guess was spot on.

 

[keenmaster486]

@jamessmith112 I have an average second hand family car and my insurance is 6000 yen per month. So, 100,000/year sounds about right. You can get online quotation to get a better idea.

 

[darrel]

@jamessmith112 Really depends on the coverage, car make, driving history, and deductible. Online insurance companies like Sony Sompo have online calculators to estimate the cost.

 

[jamessmith112]

@darrel Thanks! I wasn't sure what info I need to use the online calculators. I tried the Sony Sompo one just now and got estimates from 150,000 to 200,000 yen depending on the options.

 

[darrel]

@jamessmith112 Coverage for vehicle repairs after single-car accidents can be very expensive.

You can reduce the cost by setting an age limit to the driver or limiting drivers to family members only.

 

[farmer4life]

@jamessmith112 Middle aged, Gold license, maximum no-claims discount and comprehensive coverage with I think just a 50,000yen deductible. I pay about 7k per month for a new car costing close to 10mil.

There’s an overview of the system here.

https://retirewiki.jp/wiki/Car_insurance

I’m guessing you’d pay from 10k a month for decent coverage.

 

[ethzz]

@farmer4life Yes, OP should note that, with a clean driving record in each following year, their insurance cost will go down.

 

[farmer4life]

@ethzz On the downside, I drive someone who’d think the guy Driving Miss Daisy was reckless.

 

[jesusgal4100]

@jamessmith112 Depending on the vehicle, with a new license, I would expect 150,000 - 200,000 for a sports car. I have a gold license with almost 30 years of good driving history and I pay in that bracket.

 

[jamessmith112]

@jesusgal4100 You're spot on, I just tried an online calculator and the range was 150,000 - 200,000 yen depending on the options. (The option of letting others drive the car seems to be the most expensive factor).

 

[ethzz]

@jamessmith112 If possible (if you're willing to take the risk), don't insure your car. I think that is called 'collision' in the US. But certainly insure the other car(s), any property damage, and of course all occupants in any of the vehicles.

And please, don't drive at all without having signed up for this "secondary (voluntary)" insurance. The mandatory insurance is, IMO, effectively worthless, and you could be in a world of hurt if you're in an accident and that's all you have.

 

[jesusgal4100]

@ethzz And then, like the recent post on Japan life, if you have a minor collision you can threaten the person you crashed into that you will leave the country to “work and save the money” for a minor repair?

 

[ethzz]

@jesusgal4100

And then, like the recent post on Japan life, if you have a minor collision you can threaten the person you crashed into that you will leave the country to “work and save the money” for a minor repair?

Absolutely not. Why would I be cautioning to not drive at all without what OP is calling "secondary (voluntary)" insurance? It's crucially important.

By "don't insure your car" I meant to not insure your own car--any damage to it , again, your own car (whatever proportions are decided), you'd pay for on yourself, without insurance covering damage/repairs to, again, your own car.

For the other things I mentioned above, I get max coverage, or 無制限/unlimited, for other vehicles, any personal injury in any of the vehicles, and property damage.

 

[jamessmith112]

@ethzz Thanks for the idea. I haven't decided yet whether to finance part of the purchase -- if so I imagine the bank or loan company may mandate a certain level of coverage?

I'll most likely insure the car anyway (maybe with a high deductible) -- since in case of a major loss the amounts involved is quite a lot for me, even if the probability of occurrence might be low. Still, an idea worth considering.

 

[subaru17]

@jamessmith112 Closer to 10man per year.

Cheap is on the order of 5man for us, with only liability and no car itself insurance. With car itself insurance it was 12man a year.

 

[nusans]

@jamessmith112 Mine is roughly 30,000-40,000 per year but it comes down to what options you select, vehicle, and your driver history but car insurance in Japan is a joke as they’ll do anything as everything to payout as little as possible and make it almost impossible to write off a vehicle.

The cheapest way generally is to get it is online and takes roughly 30 minutes to fill everything out and check boxes of the options you want or don’t want and test with the insurance companies simulation calculators.

*Update: Why are people downvoting this reply...? I guess they just mad that they spend 4x what I pay?

 

[jesusgal4100]

@nusans The online insurers can be shady like you describe. But the mainstream insurers are no different to insurance I’ve taken elsewhere. They will have stated rules in the policy for a write off. Mine is 50% of car value. But it was about 20 - 30% more than online insurance.

Pay less get worse coverage.

 

[nusans]

@jesusgal4100 It has nothing to do with online insurers being shady. The insurance industry in Japan is about 15-20 years behind places like North America in regards to offerings, policies, payouts and just how the systems overall are run. I was a passenger in an accident in North America 12 years ago and of course dealing with insurance is never fun, but overally for auto insurnace you're protected incase of injury or damage compared to Japan. Purchasing your auto insurance online in Japan is just quicker and cheaper. For my personal auto insurance I was using ＳＢＩ損保 and currently using AXA アクサダイレクト I drive my delica D:5 almost daily in Tokyo, and have gold license without a single accident or ticket in 10+.

Many of my friends and and rental customers have had big or serious accidents where insurance do everything they can to payout nothing or only payout small portions of the policy including a friends wife was injured in a scooter accident with a car over five years ago in Tokyo and now has a serious brain damage and unable to work or function and insurance is doing everything they can to payout next to nothing.

I've been running a rental vehicle and campervan fleet for 6+ years and dealt with a lot of insurance and policies and accident claims, Japan insurance is an absolute joke. Almost every insurance broker or policy manager I've spoken with has literally tells me to my face that they're 15+ years behind the NA. We use Tokio Marine & Nichido Fire Insurance Co., Ltd. which is one of the largest in Japan and what the majority of rental companies in Japan use.In the 6+ years I've been involved in the insurance/rental industry in Japan I've seen, heard, and had friends/customers involved in all sorts of small and large accidents claims, especially since Tokyo has so many paper drivers. All I can say is good luck trying to get the insurance company to actually write-off and payout the full value of your vehicle.