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Compulsory and Voluntary Auto Insurance

Compulsory and Voluntary Auto Insurance is the two-tier system every car owner in Japan buys into: statutory cover for third-party bodily injury plus private cover for everything else.12 The compulsory layer alone leaves property damage, your own injuries, and any excess liability on you, so most responsible drivers add full voluntary cover.13

Confirm current details with official sources

Procedures, fees, and requirements can change. Confirm current details at the Ministry of Land, Infrastructure, Transport and Tourism CALI portal and the General Insurance Rating Organization of Japan rate tables. This article is general information, not insurance advice; for your specific case, consult a licensed insurance agent.

Overview​

Japan requires every motor vehicle on public roads to carry 自賠責保険 (jibaiseki hoken, "compulsory automobile liability insurance").1 This statutory layer pays third-party bodily injury up to fixed per-victim caps and nothing else.14

Private insurers sell 任意保険 (nin-i hoken, "voluntary automobile insurance") on top of it.2 Voluntary policies add third-party property liability, excess bodily-injury liability, own and passenger injury cover, own-vehicle repair, and riders such as legal-fee and roadside cover.25

Rate tables in this guide price mainland Japan excluding Okinawa and remote islands, which the official tables rate separately.67 Voluntary prices are not municipal; they move with driver age, no-claim grade, vehicle class, mileage, use, and cover choices.5

Compulsory Insurance: Jibaiseki​

Jibaiseki is government-framed victim relief, not full insurance. It guarantees a minimum bodily-injury payment by backing the at-fault party's liability, and every vehicle needs it with only narrow exceptions such as small special vehicles under 35 km/h.1

What jibaiseki covers and its payment caps​

Jibaiseki pays third-party death, residual disability, and injury claims. It does not pay property damage, your own vehicle repair, your own injuries, or single-party own-injury events such as hitting a pole alone.14

Caps apply per victim: death 30,000,000 JPY, injury 1,200,000 JPY, and residual disability from 750,000 JPY (Grade 14) to 40,000,000 JPY (Grade 1 with continuous nursing care; Grade 2 occasional care 30,000,000 JPY).14 Court-ordered settlements for serious injuries can far exceed these minimums, which is the structural reason voluntary cover exists.23

CoverJibaisekiVoluntaryAs ofNotes
Third-party bodily injuryPays up to cap14Pays excess above cap; commonly unlimited122026-09-0812Voluntary does not replace compulsory duty
Third-party property damageNot covered1Covered, commonly unlimited252026-09-0825Includes other cars, buildings, objects
Driver and own-passenger injuryNot covered4Covered via personal-injury and passenger riders22026-09-082Terms follow insurer schedule
Own-vehicle damage and theftNot covered14Covered only with own-vehicle option22026-09-082Largest premium driver among options

The comparison above reflects standing product structure (as of 2026-09-08; confirm current terms with the MLIT CALI portal and individual insurers).12

Compulsory cover alone leaves bills you pay yourself

Property damage, your own medical costs, and any bodily-injury amount above the cap stay personal without voluntary cover.14 A guardrail strike or a luxury-car repair can reach six or seven figures before any injury bill appears.3

For a covered bodily-injury claim the compulsory layer pays first up to its cap and voluntary bodily-injury liability pays the excess.1 A victim may also claim directly against the at-fault insurer, and voluntary insurers commonly settle both layers together then recover the compulsory share internally.1

How and when you pay: shaken and contract terms​

You pay the compulsory premium with the 車検 (shaken, "mandatory biennial vehicle inspection") cycle. Continuing-inspection contracts commonly run 24 months (25 months in some inspection timing) and new-car contracts run 37 months.6

The trigger is the cover start date, not the procedure date. Contracts starting on or before 2026-10-31 keep old rates, while cover starting on or after 2026-11-01 uses the revised rates below (as of 2026-07-02; confirm current figures with the General Insurance Rating Organization of Japan).67

Contract (mainland, excl. Okinawa and remote islands)AmountAs ofNotes
Private passenger car, 24-month continuing inspection, old17,650 JPY2026-07-026Pre-hike rate
Private passenger car, 24-month continuing inspection, new18,560 JPY2026-07-0267Plus 910 JPY
Inspected kei car, 24-month continuing inspection, old17,540 JPY2026-07-026Pre-hike rate
Inspected kei car, 24-month continuing inspection, new18,660 JPY2026-07-0267Plus 1,120 JPY
Private passenger car, 37-month new car, new25,180 JPY2026-07-0267New-car term
Inspected kei car, 37-month new car, new25,330 JPY2026-07-0267New-car term

The table reflects the November 2026 revision averaging about 6.2 percent across vehicle types (as of 2026-07-02).6 Annualized, the 24-month private-car figures equal roughly 9,000 JPY per year; the broader by-type annual planning band of 12,000 to 25,000 JPY per year covers heavier vehicle classes above the standard car line (as of 2026-09-08).6

Penalties for driving uninsured​

Driving without valid compulsory cover risks up to one year imprisonment or a fine up to 500,000 JPY, plus six penalty points and license suspension.15 Merely failing to carry or display the certificate risks a fine up to 300,000 JPY.15

Voluntary Insurance: Nin-i Hoken​

Voluntary cover is technically optional and socially expected. It is the layer that keeps a serious accident from becoming personal debt, because it adds property liability, excess bodily-injury liability, and your own side of the loss.23

The claim flow below shows how the two layers stack in a covered third-party injury case.12

The five cover pillars​

対人賠償保険 (taijin baishō hoken, "bodily injury liability") pays third-party death and injury damages above the compulsory cap when you are legally liable.2 Most drivers set this at unlimited.5

対物賠償保険 (taibutsu baishō hoken, "property damage liability") pays damage to other cars, houses, poles, shops, and objects.2 This pillar has no compulsory counterpart at all.1

人身傷害補償保険 (jinshin shōgai hoshō hoken, "personal injury compensation") pays your own injury or death by the insurer schedule, generally regardless of which car you were in.2 搭乗者傷害保険 (tōjōsha shōgai hoken, "passengers accident cover") pays passengers in your insured car by schedule.2

車両保険 (sharyō hoken, "own-vehicle physical damage") pays repair or theft loss for your own car.2 Common riders add 弁護士費用特約 (bengoshi hiyō tokuyaku, "legal-fee cover"), roadside assistance, rental-car cost, and uninsured-motorist cover.25

Foreign residents apply with a valid Japanese license, a Geneva-Convention international permit, or a converted license, plus residence card and vehicle documents.35 Contract and accident procedures still run largely in Japanese even where accident hotlines offer interpreters.5

What voluntary cover costs and what moves the price​

Published market bands put basic voluntary cover at roughly 30,000 to 80,000 JPY per year and full cover at roughly 80,000 to 150,000 JPY or more per year (as of 2026-05-25; confirm current figures with individual insurers).3 A second market cross-check gives kei cars with low mileage and experienced drivers around 20,000 to 50,000 JPY per year, standard cars with average use around 40,000 to 80,000 JPY per year, and young or newly licensed drivers at 80,000 to 150,000 JPY or more per year (as of 2026-07-03).5

Driver profileAnnual bandAs ofNotes
Basic voluntary cover30,000-80,000 JPY2026-05-253Liability-focused, no own-vehicle
Full voluntary cover80,000-150,000+ JPY2026-05-253Adds own-vehicle and riders
Kei, low mileage, experienced20,000-50,000 JPY2026-07-035Low risk class
Standard car, average use, mid-career40,000-80,000 JPY2026-07-035Typical commuter band
Young or newly licensed80,000-150,000+ JPY2026-07-035Age and grade penalty

The bands above are market references for mid-2026 shopping (as of 2026-07-03; confirm current figures with individual insurers).5 Your quote moves with age, 等級 (tōkyū, "no-claim grade") and accident history, vehicle rate class, annual mileage, use purpose, cover level, driver scope, and region.58

Grades run from 1 to 20. First-time drivers commonly start at grade 6 (6S), rise one rank per claim-free year, and drop about three ranks after an at-fault claim with a surcharge period.38 Gold-license holders earn premium discounts over blue-license holders at most voluntary insurers, with the exact percentage varying by insurer and product (as of 2026-09-08).8

Providers and sales channels​

Agency-channel groups include Tokio Marine Nichido, Sompo Japan, and MS&AD (Aioi Nissay Dowa).35 Online-direct sellers include Sony Sonpo, SBI Sonpo, Saison, Mitsui Direct, E-design, and Rakuten Sonpo.35

Direct-online terms for equivalent cover typically run about 20 to 35 percent below agency-channel pricing by removing intermediary cost (as of 2026-07-03).5 Sony Sonpo offers new-online discounts up to 15,000 JPY with 24/7 accident reception and multilingual support (as of 2026-09-08).9 SBI Sonpo offers 14,500 JPY off new-online paperless applications and builds plans from unlimited bodily-injury and property liability upward (as of 2026-09-08).8

Compare quotes on riders and deductibles, not headlines

Headline online discounts do not equalize legal-fee riders, rental-car terms, mileage conditions, or driver-scope limits.89 Requote with identical limits, deductibles, and riders before ranking insurers.5

Choosing Cover Without Buying Too Little​

Most responsible drivers carry unlimited third-party bodily-injury and property liability, because a serious 30-year-old injury can exceed a lifetime of premiums while the compulsory death cap stops at 30,000,000 JPY.123 Own-vehicle cover then turns on the car's value and the deductible you can absorb.2

This guide describes products only. Which limits, personal-injury amount, deductible, and riders fit your household depends on your car, drivers, and mileage, so take shortlisted quotes to a licensed insurance agent before binding cover.2

Good to know​

Jibaiseki alone leaves property and own-injury gaps​

Only compulsory cover still leaves you personally liable for third-party property damage, your own injuries, and your own car.14 Treat a compulsory-only renewal as a gap to close, not a saving.

Voluntary pays only above the compulsory cap for bodily injury​

Voluntary bodily-injury liability starts where compulsory stops.12 That stacking is why unlimited voluntary bodily-injury limits are the market norm rather than a luxury.5

Shaken bundles jibaiseki but never voluntary cover​

Your inspection bill collects the compulsory premium for the next term.6 Voluntary premium is a separate annual contract with its own renewal date, so diary both.5

Gold-license and grade discounts reward clean history, not the car alone​

Grade promotion accrues one rank per claim-free year from the 6 or 6S start, and gold status reflects a five-year clean record.38 New residents without transferable history start near the bottom even in a cheap kei car.

Direct-online quotes look cheaper until riders and deductibles are compared​

Sony and SBI headline discounts reward new-online paperless applications specifically (as of 2026-09-08).89 Match riders, mileage bands, and driver scope line by line before concluding which quote is cheaper.5

See also​

References​

Footnotes​

  1. Ministry of Land, Infrastructure, Transport and Tourism. Compulsory Automobile Liability Insurance FAQs (English). https://www.mlit.go.jp/jidosha/jibaiseki/en/faq/index.html ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15 ↩16 ↩17 ↩18 ↩19 ↩20 ↩21 ↩22 ↩23

  2. Verybest Law Offices. Types of Automobile Insurance in Japan. https://global.vbest.jp/en/individuals/traffic_accidents/automobile_insurance/ ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15 ↩16 ↩17 ↩18 ↩19 ↩20 ↩21 ↩22 ↩23 ↩24 ↩25

  3. Expat Japan Team. Car Insurance in Japan for Foreigners (published 2026-05-25). https://expatsjapan.com/money/car-insurance-japan-foreigners/ ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13

  4. General Insurance Association of Japan (Sonpo Kyokai). 自賠責保険 (Jibaiseki overview). https://www.sonpo.or.jp/insurance/jibai/index.html ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8

  5. MailMate. Car Insurance in Japan: A Guide to the Top Providers (published 2026-02-27, updated 2026-07-03). https://mailmate.jp/blog/car-insurance-in-japan ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15 ↩16 ↩17 ↩18 ↩19 ↩20 ↩21 ↩22 ↩23

  6. JAF Mate Online. 自賠責保険料が2026年11月から値上げ (published 2026-07-02). https://jafmate.jp/car/traffic_topics_20260702_1199387.html ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12

  7. General Insurance Rating Organization of Japan (GIROJ). 自動車損害賠償責任保険基準料率 (filed 2026-04-30, effective for contracts starting 2026-11-01). https://www.giroj.or.jp/ratemaking/cali/pdf/202604_table.pdf ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  8. SBI Sonpo. 自動車保険 (official site: coverage guide, discount and grade-system pages). https://www.sbisonpo.co.jp/car/insurance/ and https://www.sbisonpo.co.jp/car/guide/grade-system/ ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7

  9. Sony Sonpo. 自動車保険 (official site). https://www.sonysonpo.co.jp/auto/ ↩ ↩2 ↩3