Car insurance in Japan
Car insurance in Japan is a must-have for anyone who owns a vehicle, and it is regulated by the government to ensure that all drivers have adequate coverage.
In this article, we will take a look at the types of car insurance available in Japan, the coverage they provide, and how to choose the right insurance for your needs.
Types of Car Insurance in Japan
There are two main types of car insurance in Japan: Compulsory Automobile Liability Insurance (CALI) and optional comprehensive insurance. Here's a closer look at each type:
Compulsory Automobile Liability Insurance (CALI) CALI is a mandatory insurance that all drivers in Japan must have. It covers bodily injury or death caused to third parties as a result of a car accident. It does not cover damage to your own vehicle or injury to yourself or your passengers.
CALI premiums are determined by the size and type of vehicle, as well as the driver's age and driving experience. The coverage amount is fixed by law and varies depending on the severity of the accident.
Comprehensive Insurance
Comprehensive insurance is an optional insurance that covers damage to your own vehicle as well as injury to yourself and your passengers. There are three types of comprehensive insurance in Japan: collision insurance, non-collision insurance, and comprehensive insurance that covers both.
Collision insurance covers damage to your vehicle as a result of a collision with another vehicle or object. Non-collision insurance covers damage to your vehicle as a result of theft, vandalism, or other non-collision incidents. Comprehensive insurance covers both types of damage.
Coverage Amounts
The amount of coverage provided by CALI is fixed by law, and it varies depending on the severity of the accident. The coverage amounts for comprehensive insurance can be chosen by the policyholder. The higher the coverage amount, the higher the premium.
Choosing the Right Insurance
When choosing car insurance in Japan, it's important to consider your needs and budget. If you only need to meet the legal requirements, CALI is mandatory and sufficient. If you want more protection, you can add comprehensive insurance. It's also important to compare premiums and coverage amounts from different insurance providers to find the best deal.
Conclusion
Car insurance is an essential part of owning and driving a vehicle in Japan. Understanding the types of insurance available, the coverage they provide, and how to choose the right insurance can help you make an informed decision and protect yourself and others on the road.
