➊ Types of Insurance
- Compulsory Automobile Liability Insurance (CALI)
- Optional Automobile Insurance
- Choosing the right insurance
- Tips on how to reduce your insurance premium
Compulsory Automobile Liability Insurance (CALI)
Automobile insurance can cover some or all of the following items:
- Third parties
- The insured party
- The insured vehicle
Under Japanese law, all registered vehicles must be covered by Compulsory Automobile Liability Insurance. This compulsory insurance is very similar in concept to that mandated in other countries, and it is designed primarily to protect third parties from injury by any vehicle in an accident. Although compulsory insurance is effective, it is by no means adequate in providing coverage for the insured, property damage to third parties and it does not cover any repair or replacement for damage to the vehicle itself.
In Japan, compulsory insurance covers the following basic third party costs:
Limit of liability
Death: 30 million yen
Injury: 1.2 million yen
Residual disability: 750,000 yen – 40 million yen
Death: 30 million yen
Injury: 1.2 million yen
Residual disability: 750,000 yen – 40 million yen
| Note: | Compulsory insurance covers the insured party and any individual driving with the Insured's permission. Passengers are also covered as they are deemed to be Third Parties. In addition to compulsory insurance, there is a range of optional insurance available to cover such things as injury and automobile repairs. |
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Optional Automobile Insurance
There's no shortage of optional auto insurance coverage and policy types. Collision coverage pays to repair damage to your vehicle caused by a crash. In addition to the standard types of insurance, comprehensive coverage will also pay for damage to your vehicle if it's vandalized or stolen, etc. Both comprehensive and collision coverage generally require you to pay an excess (sometimes known as a 'deductible') before you can claim any money. The amount of the excess is decided at the time of insuring the vehicle, and is typically 50,000 yen, 100,000 yen etc. The point to remember is that the lower the excess you choose, the higher the premium will be. Furthermore, different policies will specify the particular circumstances under which coverage is available.
Liability
Liability coverage provides a fixed amount of coverage for damages that an insured becomes legally liable to pay due to an accident or other negligence. For example, if the insured party drives into a telephone pole, liability coverage will pay to repair damage caused to the pole. The insured party may also be liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company).
Liability coverage provides a fixed amount of coverage for damages that an insured becomes legally liable to pay due to an accident or other negligence. For example, if the insured party drives into a telephone pole, liability coverage will pay to repair damage caused to the pole. The insured party may also be liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company).
Choosing the right insurance
Most people purchase automobile insurance either over the Internet, directly from large insurance companies, or from insurance agents. Each one has their benefits, so it is up to the consumer to decide carefully which one is best for their needs.
Internet insurers and Insurance companies
Typically, it is very easy to insure a vehicle over the Internet. There are no documents to sign and payment can be made by credit card online. Insurance policies offered over the Internet tend to be cheaper because of the reduced amount of direct contact with customers and a limited variety of products. Similarly, it is relatively easy to create an insurance policy for particular requirements with an insurance company.
On the down side, Internet insurers and Insurance companies generally do not offer the insurance documentation in English. If the insured party happens to become involved in an accident they must follow the standard procedures to lodge their claim and complete any necessary documentation in Japanese. In other words, it may be easy to purchase this insurance, but the claim process can be time consuming and arduous in Japanese.
Also, the internet insurance company has the customer section within the insurance company, so the customer will have to speak with a different operator all the time in order to explain the situation.
Typically, it is very easy to insure a vehicle over the Internet. There are no documents to sign and payment can be made by credit card online. Insurance policies offered over the Internet tend to be cheaper because of the reduced amount of direct contact with customers and a limited variety of products. Similarly, it is relatively easy to create an insurance policy for particular requirements with an insurance company.
On the down side, Internet insurers and Insurance companies generally do not offer the insurance documentation in English. If the insured party happens to become involved in an accident they must follow the standard procedures to lodge their claim and complete any necessary documentation in Japanese. In other words, it may be easy to purchase this insurance, but the claim process can be time consuming and arduous in Japanese.
Also, the internet insurance company has the customer section within the insurance company, so the customer will have to speak with a different operator all the time in order to explain the situation.
Insurance Agents
Insurance agents such as Japan Insurance represent their larger insurance counterparts by offering the same policies - but often with some kind of value added service. The agent may provide English language documents and services, with obvious advantages for the non-Japanese speaking customer. First, they offer customers high level of specialization, advice and consultation in English. The customer will be able to speak with the same customer consultant when he or she starts the policy so the customer can feel more secure to speak with the person directly. If the customer is involved in an accident, the agent becomes directly involved to help with accident reporting, assisting with the claim documentation, and arranging for any necessary repair and replacement car services.
Insurance agents such as Japan Insurance represent their larger insurance counterparts by offering the same policies - but often with some kind of value added service. The agent may provide English language documents and services, with obvious advantages for the non-Japanese speaking customer. First, they offer customers high level of specialization, advice and consultation in English. The customer will be able to speak with the same customer consultant when he or she starts the policy so the customer can feel more secure to speak with the person directly. If the customer is involved in an accident, the agent becomes directly involved to help with accident reporting, assisting with the claim documentation, and arranging for any necessary repair and replacement car services.
Tips on how to save money on your insurance premium
1. Don't let your existing insurance policy lapse.
If you currently have an automobile insurance policy in Japan, don't let it lapse before you renew it - even when changing to another insurer. No matter how long you've been driving in another country, when you first arrive in Japan you are given a discount rating of '6'. This rating will improve with each year of continued policies and safe driving, allowing you to get a bigger discount - no matter which insurer you switch to. The key is that you cannot allow your policy to lapse between insurers!
2. Request higher excess
When you lodge a claim against your insurance policy, the 'excess' (sometimes known as a 'deductible') is the initial amount of money you must pay before your insurance policy takes effect. Therefore, by selecting a higher excess amount you will lower your premium considerably. For example, by increasing your excess from yen 50,000 yen 100,000 yen on collision coverage could reduce your premium Accordingly. This is particularly useful if you are a low mileage driver or if you have a long accident-free driving history.
3. Remove collision and/or comprehensive coverage on older vehicles.
If your car is worth less than 500,000 yen, covering the vehicle for collision damage, etc. is probably not worth the cost of the premiums you are likely to pay. Check the value of your car before you decide to cover it for collision coverage.
4. Buy a common car.
It may not be as exciting or as exotic as some of the cars on the road, but the more common your car, the more likely it is that spare parts are readily available. This can help to considerably reduce your insurance premium.
➋ What to do if you're involved in an accidente
Below is a list of the things you should do if involved in an accident
1. Contact the Police (Telephone: 110)
The individual at fault is required to contact the police, however it is also necessary for the other party to contact the police - particularly if it is an accident involving injury to the other party. In such cases the injured party can lodge a form notifying the police of the injury (jinshin atsukai). It is also important to go to the Japan Safe Driving Center (http://www.jsdc.or.jp/) for a traffic accident certificate (kotsu jiko shomei-sho).
2. Confirm the details of the other party
- The license plate number of the individual at fault
- Name, address, telephone number of the individual at fault
- Contact details of the place of employment
- Details of the Compulsory Automobile Liability Insurance / Automobile Insurance company and policy number (drivers should keep these details in their glovebox)
3. Get the details of any witnesses to the accident
If a person happened to see the accident, try to take down notes of what they saw, together with their name, address and contact details in case they need to be contacted in the future.
4. Take photos of the accident for your own records
If possible, take photos of the accident scene soon after the accident occurs. Also take the photo of the other party’s vehicle.It is also advisable to draw a diagram of the accident scene for future reference.
5. Be sure to consult a doctor
Even if you believe your injuries are minor, you should visit a doctor to ensure that the injuries aren't more serious.
➌ Useful Links
- Government or official sites
- Driving information / Weather conditions
- Buying or Selling Cars
Government or official sites
Driving information / Weather conditions
For a detailed quote specific to your vehicle, go to our Free Car Insurance Quote section
➍ Basic driving rules and licenses in Japan
- Some basic facts
- International Driving Permits (IDPs)
- Japanese drivers licenses
- Converting your license
- License Centers
- Accident liability
- Common road signs
When driving in Japan, be very careful that you have the appropriate license, because driving without a valid license may void your insurance coverage.
Some basic facts
In Japan, cars are driven on the left side of the road and most cars have the driver's seat and steering wheel on the right. The legal minimum age for driving is 18 years. Road signs and rules follow international standards, and most signs on major roads are displayed in both Japanese and English. Drinking and driving in Japan is strictly prohibited in Japan, so anything above a blood alcohol level of zero is not tolerated. The police are active in setting up random breath-checks on major roads at night and on the weekends, so please take extra precaution when planning a trip out that may involve alcohol. When in doubt use public transport. One final thing - it is against the law to use your mobile phone while driving, so please pull over to the side of the street at the safest location in order to make or receive a call.
The typical speed limits are generally lower than in western countries. Typically the limits are between 80 to 100 km/h on expressways, 40 km/h in built-up urban areas, 30 km/h in side streets and 50 to 60 km/h elsewhere. Speed limit signs are often not posted, so please be cautious and use common sense when in narrow streets. Bicycles in particular have a tendency to use both the road and the footpaths, so they may suddenly swerve into traffic without paying attention. Most roads in Japan are toll free with the exception of highways, most expressways and some scenic driving routes. Road conditions tend to be good, although side streets in the cities can be rather narrow. Traffic congestion is a common problem in and around urban centers. During the peak holiday traffic seasons such as obon in summer it is not uncommon to hear of traffic being backed up for 50 kilometers (30 miles) or more. If you plan to drive into or out of Tokyo during these peak times, the best advice is to leave as early as possible to avoid the rush. Most people leave well before dawn.
It's not all negative news, however! Drivers are generally well mannered and considerate to fellow drivers and pedestrians, and you won't often hear the horn being used. On the other hand, two of the most common infringements of the law are surely speeding and ignoring traffic signals (many cars continue driving through intersections despite the fact that the light has turned red). Annoying rather than dangerous are the many people - particularly taxis - who suddenly pull over or park at the most inconvenient of locations, effectively blocking traffic on busy roads. These problems are only exacerbated by the lack of street parking and narrow roads often with only one lane. As mentioned above, cyclists, too, can appear from nowhere and seem to be almost completely oblivious to the presence of vehicles.
It's not all negative news, however! Drivers are generally well mannered and considerate to fellow drivers and pedestrians, and you won't often hear the horn being used. On the other hand, two of the most common infringements of the law are surely speeding and ignoring traffic signals (many cars continue driving through intersections despite the fact that the light has turned red). Annoying rather than dangerous are the many people - particularly taxis - who suddenly pull over or park at the most inconvenient of locations, effectively blocking traffic on busy roads. These problems are only exacerbated by the lack of street parking and narrow roads often with only one lane. As mentioned above, cyclists, too, can appear from nowhere and seem to be almost completely oblivious to the presence of vehicles.
International Driving Permits
Foreigners can drive in Japan and hire rental cars for a period of up to one year using a recognized international driving permit. These permits are valid for only one year from the date of issue, and must be obtained in the home country before arriving in Japan. Obtaining an International Driving Permit is generally quite a simple process that can be done through a national automobile association.
Japan recognizes only international driving permits, which are based on the Geneva Convention established in 1949. A few countries, including Belgium, France, Germany and Switzerland, however, issue their own international driving permits which are based on different conventions. The permits issued by those countries are not valid in Japan.
Instead, holders of a French, German or Swiss driver's license are permitted to drive in Japan for up to one year if they produce an official Japanese translation of their driving license, which can be obtained from the respective country's embassy or consulate in Japan. People from other countries whose international driving permits are not recognized in Japan must attain a Japanese driving license in order to drive in Japan.
Japan recognizes only international driving permits, which are based on the Geneva Convention established in 1949. A few countries, including Belgium, France, Germany and Switzerland, however, issue their own international driving permits which are based on different conventions. The permits issued by those countries are not valid in Japan.
Instead, holders of a French, German or Swiss driver's license are permitted to drive in Japan for up to one year if they produce an official Japanese translation of their driving license, which can be obtained from the respective country's embassy or consulate in Japan. People from other countries whose international driving permits are not recognized in Japan must attain a Japanese driving license in order to drive in Japan.
Japanese Driving Licenses
The law governing the use of International Driving Permits changed in June 2002. Until that time, many foreigners simply renewed their International Driving Permits multiple times, however it is now restricted for foreigners to drive using such permits for a maximum of 12 months, after which time they must apply for a Japanese driving license.
"Residents" in Japan are expected to either convert their license to a Japanese one, or obtain a Japanese drivers license. If you a caught using an International Drivers Permit but have lived in Japan more than one year you may be subject to fines or arrest. In theory there is a fine line because of the different interpretations of "resident" and "not resident". In practice, however, it seems to involve more than just the visa status, category of employment or length of stay in Japan - and is usually determined arbitrarily by the police.
"Residents" in Japan are expected to either convert their license to a Japanese one, or obtain a Japanese drivers license. If you a caught using an International Drivers Permit but have lived in Japan more than one year you may be subject to fines or arrest. In theory there is a fine line because of the different interpretations of "resident" and "not resident". In practice, however, it seems to involve more than just the visa status, category of employment or length of stay in Japan - and is usually determined arbitrarily by the police.
Converting your license
To convert your home license into a Japanese driving license take your license, you personal stamp (called a hanko), your Alien registration card, passport and approximately 3,000 yen to the nearest office of the Japan Automobile Federation (JAF). You can either wait for the translation or have it posted to you. Once you have your license translated, go to the nearest Driver Licensing Centre (listed below) with your Alien registration card (simply called a Gaijin card by most people), passport, original license and translation, two passport photos taken within three months, and glasses if required for driving. The cost ranges from between 4,000 to 6,000 yen.
Japan has concluded agreements with more than twenty countries to ease the process of converting a valid foreign driving license into a Japanese one. Among these countries are Australia, Austria, Belgium, Canada, France, Germany, Italy, the Netherlands, New Zealand, South Korea, Spain, Switzerland and the United Kingdom. If you hold a valid driving license from one of these countries, you can get a Japanese license without taking a written or driving test. If you can provide the official translation of your existing overseas license, all that is required to receive a Japanese license is an eye test and some proof that you lived in the overseas country for a minimum of three months after that license was issued.
Japan has concluded agreements with more than twenty countries to ease the process of converting a valid foreign driving license into a Japanese one. Among these countries are Australia, Austria, Belgium, Canada, France, Germany, Italy, the Netherlands, New Zealand, South Korea, Spain, Switzerland and the United Kingdom. If you hold a valid driving license from one of these countries, you can get a Japanese license without taking a written or driving test. If you can provide the official translation of your existing overseas license, all that is required to receive a Japanese license is an eye test and some proof that you lived in the overseas country for a minimum of three months after that license was issued.
If you have a driving license from a country which has not concluded an agreement with Japan yet, such as the United States, China or Brazil, you will have to take both the written test and the driving test in order to obtain a Japanese driving license. This process typically takes several attempts even in the case of experienced drivers.
| Note: | You must lodge your license application in the same prefecture as you obtained your alien registration card (Gaikokujin Tohroku Shomei-sho). |
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