Japan to Cut Auto Liability Insurance Premiums by 16 Pct

Economy Politics

Tokyo, Jan. 22 (Jiji Press)--The Japanese government decided on Wednesday to reduce compulsory automobile liability insurance premiums by 16.4 pct on average, beginning in April.

The first reduction since April 2017 comes as the financial standing of the insurance program improved after the wider use of automatic braking systems and other vehicle safety equipment helped push down the number of traffic accidents and the amount of insurance payments.

The two-year insurance premium will be cut by 16.6 pct to 21,550 yen for private passenger cars and by 15.7 pct to 21,140 yen for minivehicles, according to the decision, made at a meeting of the Compulsory Automobile Liability Insurance Council, which advises the commissioner of the Financial Services Agency.

For motorcycles with engine displacements of over 250 cc, the premium will be set at 9,680 yen, down by 16.0 pct. The premium for scooters will decline by 10.1 pct to 8,950 yen.

The new premiums will apply to all areas excluding the southernmost prefecture of Okinawa and other remote island regions.

[Copyright The Jiji Press, Ltd.]

Jiji Press