Car Insurance in Japan (2026): Costs & English Options
Car insurance in Japan (自動車保険, jidosha hoken) has two layers. Every vehicle must carry compulsory automobile liability insurance (自賠責保険, jibaiseki). Most car owners also buy optional insurance (任意保険, nin’i hoken) to cover the gaps.
Jibaiseki costs 17,650 yen for 24 months on a standard car. From November 1, 2026, it rises to 18,560 yen. Optional insurance typically costs 20,000 to 80,000 yen a year for experienced drivers. Young and new drivers pay more.
You can buy car insurance in Japan as a foreigner if you have a valid driver’s license. This guide covers the two types of insurance, 2026 costs, license rules, English options, and the top insurance companies.
Types of car insurance in Japan
There are two types of car insurance in Japan:
Compulsory automobile liability insurance (自賠責保険, jibaiseki): The law requires it for every registered vehicle.
Optional car insurance (任意保険, nin’i hoken): It is voluntary, but most car owners buy it.
1. Compulsory automobile liability insurance: jibaiseki
Jibaiseki is a statutory vehicle liability insurance. The Financial Services Agency supervises it. The Ministry of Land, Infrastructure, Transport and Tourism runs the inspection system that collects it.
Your dealer usually arranges jibaiseki when you buy a car. You then renew it at each vehicle inspection (車検, shaken).
What jibaiseki covers
This insurance only protects third parties in traffic accidents. It pays for injury or death you cause to others. It does not cover property damage, your own car, or your own injuries.
The maximum vehicle liability insurance payout per victim is:
Death: up to 30 million yen
Permanent disability: up to 40 million yen, depending on severity
Injury: up to 1.2 million yen
Real accident claims often exceed these limits. That is why most drivers add optional insurance.
How much jibaiseki costs in 2026
The government sets jibaiseki rates, so every insurance company charges the same amount. Rates rise for policies starting on or after November 1, 2026. This is the first increase in about 13 years.
Vehicle type (24-month policy) |
Until October 31, 2026 |
From November 1, 2026 |
|---|---|---|
Private passenger car (自家用乗用車) |
18,560 yen |
|
Kei car (軽自動車) |
17,540 yen |
18,660 yen |
These rates exclude Okinawa and remote islands. After the change, kei cars cost slightly more than standard cars.
When you renew jibaiseki
A brand-new car needs its first shaken after three years. After that, you take the car in every two years and renew jibaiseki at the same time.
Penalties for driving without jibaiseki
Up to one year in prison or a fine of up to 500,000 yen
A fine of up to 300,000 yen for not carrying the insurance certificate
Six demerit points and a license suspension
2. Optional car insurance: nin’i hoken
Optional insurance (任意保険, nin’i hoken) covers what jibaiseki does not. This includes property damage, your own injuries, and damage to your car.
You can buy it in two ways:
Agent type (代理店型, dairiten-gata): An agent explains the policy and handles the paperwork. Premiums run higher.
Direct type (ダイレクト型, direct-gata): You buy online and choose your own coverage. Premiums run lower because no agent takes a fee.
Many direct insurers run 24-hour accident hotlines. Some also offer enhanced customer support by phone. Direct insurance saves money, but you must understand the coverage yourself.
How much does car insurance cost in Japan?
The cost of insurance in Japan has two parts. Jibaiseki is fixed by vehicle type. Optional insurance premiums depend on the driver and the car.
Typical optional insurance premiums
These are general market estimates, not quotes.
Driver profile |
Per year |
Per month |
|---|---|---|
Kei car, low mileage, experienced driver |
20,000–50,000 yen |
about 1,700–4,200 yen |
Standard car, average use, mid-career driver |
40,000–80,000 yen |
about 3,300–6,700 yen |
Young or newly licensed driver |
80,000–150,000+ yen |
about 6,700–12,500+ yen |
Car insurance is one part of the cost of living in Japan. Budget for both layers when you buy a car.
Premiums are rising in 2025 and 2026
Major insurers raised optional premiums two years in a row:
Tokio Marine Nichido: about 8.5% (October 2025), then about 6.5% (October 2026)
Sompo Japan: about 7.5% (January 2026), then about 1.8% (July 2026)
Mitsui Sumitomo: about 7% (January 2026)
Aioi Nissay Dowa: about 6% (January 2026)
Each increase applies when your policy starts or renews. Compare quotes before your renewal date.
What affects your insurance premium
The age and driving history of the main driver
Your no-claims grade (等級, tokyu)
The type, model, and value of the vehicle
Your annual driving distance
Private or business use
Your coverage level, especially personal injury and vehicle damage
Driver limits, such as “spouse only” or minimum age
Your license color: a gold license often lowers your premium
How the no-claims grade (等級) works
Japan rates drivers on a 20-grade scale. New policy holders usually start at grade 6. Each claim-free year moves you up one grade and lowers your premium.
Most accident claims drop you three grades at renewal. Theft or stone-chip claims usually drop you one grade. A second car in the same household can start at grade 7.
Japanese insurers rate your first policy in Japan from grade 6. Driving history from abroad usually does not count, so ask your insurer before you apply.
Are you leaving Japan for a while? If your grade is 7 or higher, ask for a suspension certificate (中断証明書, chudan shomeisho). It can preserve your grade for up to 10 years.
What are the requirements for car insurance in Japan for foreigners?
Insurers treat foreigners the same as Japanese citizens. The main requirement is a license you can legally drive with in Japan.
Accepted driver’s licenses
A Japanese driver’s license, including one converted from a foreign license
An International Driving Permit (IDP) issued under the 1949 Geneva Convention
A license from Switzerland, Germany, France, Belgium, Monaco, or Taiwan, plus an official Japanese translation from JAF, an embassy, or another approved body
2025 changes to license conversion
Japan tightened license conversion (外免切替, gaimen kirikae) on October 1, 2025:
You must submit a resident record (住民票, juminhyo).
The knowledge test grew from 10 to 50 questions, with a 90% pass mark.
Short-term visitors, such as tourists, can no longer convert.
If you plan to drive long term, convert early. Read our guide to getting a driving license in Japan as a foreigner.
Documents you need
Vehicle inspection certificate (車検証, shakensho)
Your driver’s license
Your current insurance certificate, if you are switching insurers
Your residence card (zairyu card) or other ID, depending on the insurer
A Japanese bank account or credit card for premiums
Language requirements
Most insurers write contracts and handle claims in Japanese. You must understand the insurance policy, or have a Japanese-speaking relative become the policy holder.
The car owner and the policy holder can be different people. The named insured is usually the main driver. Spouses can usually drive under the policy, but rules for other relatives vary by insurance company.
Basic Japanese reading and typing skills make the forms easier.
Can you get car insurance in Japan in English?
Yes, but the options are limited. Most direct insurers run Japanese-only websites, but they offer interpreted accident support.
Insurance company |
Website language |
Accident support languages |
|---|---|---|
Chubb Insurance Japan |
English available |
English |
Sony Assurance (ソニー損保) |
Japanese |
18 languages, including English |
Mitsui Direct General (三井ダイレクト損保) |
Japanese |
17 languages, including English |
E-Design (イーデザイン損保) |
Japanese |
15 languages, including English |
SOMPO Direct (SOMPOダイレクト) |
Japanese |
Multilingual support |
Chubb sells auto insurance for foreign residents through its English site. The others connect you to an interpreter in an emergency situation, such as an accident.
For other English-friendly options, see our list of English-speaking insurance companies in Japan.
What does car insurance in Japan cover?
Optional insurance coverage has six main parts:
Bodily injury liability (対人賠償, taijin baisho): Pays for injury or death you cause to others. Recommended amount: unlimited.
Property damage liability insurance (対物賠償, taibutsu baisho): Covers property damage to other cars, utility poles, or shops. Recommended amount: unlimited.
Passenger injury (搭乗者傷害, tojosha shogai): Pays a fixed amount to injured passengers in your car. Recommended amount: 10 million yen.
Personal injury (人身傷害, jinshin shogai): Pays the actual medical and income losses for you and your passengers. Choose 30 million yen, or 50 million yen for stronger protection.
Self-inflicted accident cover (自損事故, jison jiko): Covers the driver in a single-car accident, such as hitting a wall. Recommended amount: 15 million yen.
Uninsured motorist cover (無保険車傷害, muhokensha shogai): Pays in case of death or permanent disability caused by an uninsured driver.
Choose coverage based on your needs. Combining the right options gives full protection without paying for extras you won’t use.
Additional car insurance options
The following are services often available as optional or additional services.
Vehicle damage insurance (車両保険, sharyo hoken): Covers damage to your own car from accidents, theft, vandalism, or natural disasters.
Roadside assistance (ロードサービス): Many direct insurers include it free. If it costs extra, weigh how often and how far you drive.
Legal fee coverage (弁護士費用特約, bengoshi hiyo tokuyaku): Pays a lawyer to negotiate for you, which helps when the other driver is at fault. Using it usually does not affect your grade.
What should you do if you have a car accident in Japan?
Japan has a standard process for automobile accidents. Follow it even for a minor bump.
Make the scene safe. Move to a safe spot and help anyone injured.
Call the police on 110. Call 119 for an ambulance. See our guide to Japan’s emergency numbers.
Exchange details. Get the other driver’s name, address, phone number, plate number, and insurance company.
Call your insurance company. Your insurer usually negotiates with the other party for you.
Get a traffic accident certificate (交通事故証明書, kotsu jiko shomeisho). Insurers need it before they pay a claim.
The law requires you to report every accident to the police. If you skip the report, your insurer can reject the claim.
Many insurers offer multilingual accident hotlines. The police still write their reports in Japanese. Keep your policy number and vehicle details on hand to speed things up.
Top car insurance providers in Japan
We selected these direct insurance companies using customer satisfaction rankings on Kakaku.com and Oricon. Each one offers online quotes. Most also offer multilingual accident support.
Insurer |
Premium based on |
Accident support languages |
Best for |
|---|---|---|---|
SOMPO Direct |
Driver age, mileage |
Multilingual |
Drivers aged 35 and over |
Sony Assurance |
Mileage |
18 |
Low-mileage drivers |
Mitsui Direct General |
Driver profile |
17 |
Drivers who want phone help |
E-Design |
Mileage |
15 |
Low-mileage drivers |
Rakuten General |
Mileage |
Not stated |
Rakuten point users |
1. SOMPO Direct (formerly Saison Car & Fire Insurance)
SOMPOダイレクト home page
SOMPO Direct (SOMPOダイレクト損害保険) sells “Otona no Jidosha Hoken” (おとなの自動車保険). It was called Saison Car & Fire Insurance until October 1, 2024.
It calculates premiums by the main driver’s age in one-year steps. Drivers aged 35 and over usually pay less. Your annual mileage also affects the premium.
SOMPO Direct’s website is in Japanese. Check its current multilingual accident support before you apply.
Pros:
Lower premiums for drivers aged 35 and over
High user satisfaction in premium and coverage categories.
Multilingual accident support, making it convenient for non-Japanese speakers.
Cons:
Premiums are based on the age of the driver, which might be less favorable for younger drivers.
The website is only available in Japanese, which limits accessibility for those who do not speak the language.
2. Sony Assurance
Sony Assurance home page
Sony Assurance (ソニー損保) has long been a sales leader among direct car insurers. Customers often praise its polite, helpful phone operators.
Premiums are based on estimated annual mileage, rewarding users with lower mileage with reduced costs. Unused premiums due to lower actual mileage than estimated can be carried over to the next year.
Sony Insurance provides 24/7 accident support and free roadside assistance with dedicated teams for each accident. Policyholders also get a free upgrade to "VIP member" status in the "Club Off" discount service from the second year.
Sony’s website is in Japanese. Since November 2019, it has offered accident support in 18 languages, including English. This makes it a strong option for foreigners.
Pros:
Highly rated customer service
Offers 24/7 accident support and free roadside assistance.
Free upgrade to VIP member status in the "Club Off" discount service after the first year.
Accident support is available in 18 languages.
Cons:
Premiums depend on estimated annual mileage, which might be unpredictable for some users, leading to higher or lower actual costs.
3. Mitsui Direct General Insurance
三井ダイレクト損害保険 home page
Mitsui Direct General Insurance (三井ダイレクト損害保険 = mitsui dairekuto songai hoken) offers clear options for coverage, allowing users to compare and consider different coverage and premiums before applying.
Mitsui Direct belongs to the MS&AD Insurance Group. It runs a 24/7 accident desk. Its multilingual accident service supports 17 languages, including English, Chinese, Korean, and French.
Online applications can earn discounts of up to 10,500 yen. Note that Mitsui Direct accepts credit card payments only.
With cost-cutting measures, competitive premiums, and attractive discounts, Mitsui Direct Insurance is a recommended option for foreigners seeking affordable coverage and reliable support.
Pros:
Provides a "Multilingual Accident Support Service," great for all nationalities.
Excellent 24/7 dedicated accident support.
Ranked highly in customer satisfaction surveys.
Cons:
The website and application are primarily in Japanese.
While providing multilingual support, the full range of services might still be in Japanese.
4. E-Design Car Insurance
イーデザイン損保 home page
E-Design (イーデザイン損保) is a direct car insurance company in the Tokio Marine Group, one of Japan’s largest insurance groups.
E-Design bases premiums on driving distance, so you pay less if you drive less. It also offers online and accident-free discounts. Check the current amounts on its quote page.
E-Design’s accident service supports 15 languages through a three-way call with an interpreter. This three-way conversation between the contract holder, the accident receptionist, and an interpreter-operator is particularly appealing to foreigners, ensuring smooth communication in their native languages during incidents.
Foreign individuals seeking affordable premiums and comprehensive accident response services should consider E-Design Insurance's car insurance. Keep in mind, however, that the application process is in Japanese.
Pros:
Premiums are based on driving distance, which can benefit those who drive less.
Offers discounts for online applications and accident-free applications.
"Foreign Language Accident Response Service" to help non-Japanese speakers navigate through accidents smoothly.
Cons:
The application process is in Japanese.
May not be the best choice for frequent drivers as premiums rise with increased mileage.
Bonus: Rakuten General Insurance Drive Assist (ドライブアシスト)
If you’re actively using Rakuten’s credit card or its point services, Rakuten’s Drive Assist (ドライブアシスト) car insurance might be the perfect plan for you.
Not only can you pay the premiums with Rakuten points, but paying with a Rakuten credit card will get you points. Rakuten also covers hotel costs for pets if your car breaks down with your pet on board. Check the current limit in your policy.
Pros:
You can pay premiums with Rakuten points and earn points using your credit card.
Covers pet hotel costs if your car becomes inoperable due to accidents, breakdowns, or theft, which benefits pet owners.
Cons:
Best benefits are only for those already using Rakuten's services, so it’s less appealing to non-users.
Unique services like pet accommodation might lead to higher premiums, especially for those without pets.
One-day car insurance in Japan
Do you need to borrow a friend’s car, or drive a parent’s car for a weekend? One-day insurance (1日自動車保険) covers you for 24 hours at a time.
Mitsui Sumitomo 1DAY保険: from 800 yen for 24 hours, for up to 7 days. Buy it on your phone or at a 7-Eleven multi-copy machine.
Tokio Marine ちょいのり保険 (Choinori): sold online and at 7-Eleven, Lawson, and Ministop.
One-day insurance does not cover cars you or your spouse own. The application screens are in Japanese. Our guide to using the 7-Eleven multi-copy machine walks through the touch screen.
Frequently asked questions
What are the types of car insurance in Japan?
There are two types of car insurance in Japan. Compulsory automobile liability insurance (jibaiseki) is required by law for every vehicle. Optional insurance (nin’i hoken) is voluntary and covers property damage, your own injuries, and your car. Most car owners carry both.
Is car insurance mandatory in Japan?
Yes. Every registered vehicle must carry jibaiseki. Driving without it can mean up to one year in prison or a fine of up to 500,000 yen. You also get six demerit points and a license suspension.
How much is car insurance in Japan per month?
Optional car insurance typically costs about 1,700 to 6,700 yen a month for experienced drivers. Young or new drivers often pay 6,700 yen or more. Jibaiseki adds about 735 yen a month on a 24-month policy, or about 773 yen from November 1, 2026. Major insurers raised premiums by 6 to 8.5% in 2025 and 2026.
Can foreigners get car insurance in Japan?
Yes. You need a Japanese license, an International Driving Permit, or an approved foreign license with an official translation. An IDP or translated license only lets you drive for one year after arrival. Most insurers handle contracts in Japanese. A Japanese-speaking relative can act as the policy holder if needed.
Can I get car insurance in Japan in English?
Yes, with a few insurers. Chubb Insurance Japan sells auto insurance to foreign residents through an English site. Sony Assurance, Mitsui Direct, and E-Design offer accident support in 15 to 18 languages. Their websites and contracts remain in Japanese.
How much will jibaiseki cost after November 2026?
From November 1, 2026, a 24-month policy costs 18,560 yen for a standard car. It costs 18,660 yen for a kei car. The current rates are 17,650 yen and 17,540 yen. This is the first increase in about 13 years.
Does my no-claims history from abroad count in Japan?
Usually not. Japanese insurers start your first policy in Japan at grade 6 on a 20-grade scale. Each claim-free year moves you up one grade. Ask your insurer before you apply.
Can I get one-day car insurance in Japan?
Yes. Mitsui Sumitomo’s 1DAY policy starts at 800 yen for 24 hours and runs up to 7 days. You can buy it on your phone or at a 7-Eleven multi-copy machine. It does not cover cars you or your spouse own.
In closing
Jibaiseki keeps you legal, but it only covers injury to others. Optional insurance protects you from the real cost of an accident.
Compare quotes before November 1, 2026, when jibaiseki rates rise. Check which insurers offer support in your language before you sign.
Sources
Ministry of Land, Infrastructure, Transport and Tourism (MLIT): Compulsory automobile liability insurance (jibaiseki) overview (Japanese)
Financial Services Agency (FSA): 2026 jibaiseki rate revision filing by the General Insurance Rating Organization of Japan (Japanese, PDF)
Financial Services Agency (FSA): Summary of the April 30, 2026 jibaiseki council meeting (Japanese)
National Police Agency: Driving in Japan with a foreign license or International Driving Permit (Japanese)
Tokyo Metropolitan Police Department: Foreign driver’s licenses and driving periods (Japanese)
Japan Automobile Federation (JAF): Japanese translations of foreign driver’s licenses (English)
Japan Automobile Federation (JAF): Online application for a Japanese translation (English)
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