RetireJapan

Hello Everyone,

Just wondering what others are using for auto insurance, what is covered, and how much you pay.

Just purchasing my first car now and a little lost...

Thanks

The easiest way is to get your dealer to organise it for you. It’s also the most expensive.

Doesn’t matter what I pay as it’s all down to your car, age, licence colour etc.

The cheapest way is probably to do it all yourself on the internet.

I went for the lazy option. I know I’m paying more but I saved loads of time and hassle, which I value.
I don’t get too excited about insurance and am happy to pay a premium for what I see as convenience. I’ve got better things to worry about.

I wasn't going to post since I just drive rentals/carshares so haven't actually bought insurance but I've looked into the process and I think I can do better than ricardo on this. I mean, if you're just going to throw money down the drain, why bother!? I did also do driving school here where they explain how the insurances and whatnot work so I guess that's something(I presume most people will just have converted their licenses)

If you understand japanese you can always run your conditions through this comparison site http://kakaku.com/kuruma_hoken/ to get the best rate.

It's a relatively personal choice, but you're required to get the minimum insurance by law, which covers the medical expenses other party if you're at fault, but only up to a certain cap(according to https://www.sbisonpo.co.jp/car/gimon/first/first02.html it's 120man for injuries, 75-3000man for lasting disabilities and 3000man for death). Any costs above those numbers you'd have to pay up for. You're still on the hook for repairs to their car etc.

As a result of this, a lot of people opt into full cover for personal and property damage of the other party. This is probably a good idea... But honestly, I'm not sure what the chances are of sustaining medical costs beyond those stipulated.

Then you have the choice of getting personal medical expenses and property damage covered. Unless you're driving an expensive car, it may well be cheaper to just pass on the vehicle cover. Personal medical... well that's up to you(I'm actually not sure how medical insurance works as far as injuries sustained driving? I assume its the same and you have the same gendogaku, so I'd personally lean towards passing on it so long as I'd be capable of paying the max costs).

Remember, insurance is priced to be profitable for the insurance companies. So if you're confident you're a careful and attentive driver and have some money set aside for when it does go wrong, passing on a lot of the optional stuff may be a good idea, but worst case you could be on the hook for a significant sum(try not to crash into any ferraris out there) if you pass on certain covers.

It's also worth noting that police here apparently(this is hearsay but I've heard it in many anecdotes) tend to very rarely set the full blame on either driver, which is bad for you if you're a careful driver, since you'll still have to pay up even if someone tail-ended you or something(the cops will probably say 80/20 or something that you braked too suddenly, etc)

Love the posters who trash others (i.e. me) speaking from real experience (which the OP asked for) whilst adding things like: “I haven't actually bought insurance....”

And of course insurance is “profitable for insurance companies”. Doh... We get that.

Actually you made some very good points, all valid, which show how personal a choice it all is.... You will also be well aware of how めんどくさい it is using Japanese websites (“Step 3 of 9” etc)...

I stand by my assertion that I’d prefer to pay more than spend the whole evening on the internet buying insurance and dealing with all the subsequent paperwork. And I know that if I need to claim I can pop into my local dealer and they’ll look after me, rather than some faceless web start up. And, like last week, when I needed to temporarily add an additional driver for a weekend outing. Ten minutes, a free coffee and a chat, all sorted. Easy. Try doing that on the internet!

You won't pop into your dealer. You phone your insurance company when you have an accident. You don't have an accident and tell the other guy "oh let me go talk to my dealer". You a) call the police then b) call insurance. And yes, you always call the police.

And we're not talking about little rinkydink net startups, kakaku comparison is running a comparison through major insurance providers such as sbi, zurich or mitsui.

Convenience? I don't mean to be dumping on you, but your hour or two saved is going to cost you a lot in the long run. You could be looking at 1-2 man per year easily. I mean, lets say you have a pretty solid job that you get payed the equivalent of 5000 per hour(roughly 10mil a year), that's 2-3 hours of work for every year that you're on overpriced insurance. It's not an insignificant amount of money.

Finally, those net startups(like SBI/zurich/mitsui) will talk to you on the phone at the scene of the accident, they'll get the other drivers insurance details, and then they'll just square it all away between the two insurance companies with a final confirmation letter. And that won't change whether you buy online or at your dealers(who is getting a referral fee which is sure to push up the price you're paying)

Perhaps my tone was a little bit too dismissive but when someone asks for advice "I couldn't be bothered to research it and just took the overpriced easy way" does not constitute advice. I have done research into this and the cost of ownership(of which insurance is a significant part) is why I chose not to buy a car and elected to rent/carshare instead. I think it's clear I've actually spent a lot more time thinking about it and researching it. Yes, someone who has done that and has long-term experience with the insurance providers would be better, and I hope such a person can respond.

I have used the insurance comparison service on kakaku.com and various other insurance portals. Be prepared to be spammed for all sorts of insurance policies besides auto for at least the next 2 years

I agree with Ricardo and would recommend having your dealer do it for you. My dealer was very straight forward with me that he would get paid if I signed up through him and even let me mess around with the app that they use to get quotes for so I could massage the numbers around. At the end of the day it's not going to make a huge difference whether you get it through a dealer or direct, a couple thousand yen a year maybe? Your time is seriously worth more.

I pay about 50k yen annually for full comprehensive insurance. So if I hit somebody or something, coverage is unlimited. For personal injury to myself, I'm covered up to 30 million yen. I also get free lawyers and discounted hospital stays though I don't remember the values anymore. The company used to be Tokyo Marine but they recently merged and is now part of Rakuten Insurance.

Bear in mind I am too lazy to do this myself and we just got a policy off a friend of my wife's who moonlights as an insurance salesperson

If you pay for the whole year you usually get a discount compared to paying monthly.

Best option is probably to get a couple of quotes then play some agents off against each other. I have heard a lot of 'we can match that policy' which makes me think they might have some flexibility with regards to pricing.

Definitely get unlimited cover for the other party. The minimal cost versus the life-changing consequences of a high cost claim make this a no-brainer in my opinion: insurance exists to cover the costs that would damage you.

Whether you insure your own car, yourself, or passengers is more of a personal call. We no longer insure our car, as it's getting close to the end of it's useful life.

Thanks everyone. Some good advice in here...

The dealer did recommend some, but it was pretty pricey so I am a little reluctant. I had a look at the kakaku comparison page and some better looking estimates are already coming in.

Jansen - That sounds like a pretty good price. I'll take a look.

Retire Japan - Thanks for the info about paying up front. I'll see what difference that makes as well.

I'll report back in a week or so after I have decided...

I use Chubb Insurance - the best part, they speak English and have an English website.

I found the price pretty reasonable when compared to some other insurance companies. Additionally, the fact that I can communicate in English without being misunderstood is an additional bonus.

Check them out: https://www2.chubb.com/jp-en/

Just a data point for reference:

I don't insure my car, but everything else is either max or 無制限. I have a small car (Fit), and my wife is the only other insured driver (I think spouse is always included). Kids buy insurance by the day if they drive when home. I've always only paid yearly, it's now about ¥35,000/yr. I'm on the third year of a three-year auto-renewal contract, which means level cost for those years and I don't have to talk to anyone for that entire time. I only get a yearly notice that money for it will be deducted on such-and-such a date. (Obviously, don't opt for this until your rates have come down.)

I've always only used dealer-issued insurance. (my car insurance 'life' here predates the web) A couple times, I have used the guy at the dealer as a liaison with the company--so I got something for any extra money I paid. I did call Zurich a couple years ago, but wasn't impressed. And unimpressed enough that I didn't try any others.

If you don't have any claims, cost should go down over the years. Due to this, if you do have an accident that doesn't cost much, it can be better to pay out of pocket to keep your record with the insurance company clean (and keep your rates on a downward arc).

By being out on the road, you pretty much accept at least 10% responsibility in an accident. There are some 0% exceptions, usually if your car was not moving at all at the time. That can be problematic since the other party may "remember" that you were actually moving. Some years ago I held out for 0% for about four months--the other party finally gave up. YMMV.