The Japanese government has approved a plan to raise compulsory automobile liability insurance premiums by 6.2% on average, effective from 1 November 2026, reported the Jiji Press.
This will be the first hike in 13 years, and the decision for this was taken by the Compulsory Automobile Liability Insurance Council, which advises the Financial Services Agency.
The premium for two-year coverage of private-use passenger cars will rise by JPY910($5.79) to JPY18,560, excluding the southernmost prefecture of Okinawa and remote islands. For motorcycles with an engine displacement of 250cc or more, the premium will increase by JPY880 to JPY 9,640.
The insurance covers compensation for victims of traffic accidents resulting in injury or death. The premium for this segment had declined in recent years due to advances in vehicle safety technology.