The Financial Services Agency plans to increase premiums for Japan’s mandatory vehicle insurance by an average of 13.5% from April 1.
According to the agency, a premium cut in 2008 and a recent increase in insurance payouts has prompted the price increase, Sankei Shimbun reported Friday. The average premium for a family car on a two-year contract will rise from 24,950 yen to 27,840 yen, an 11.6% increase. Motorbike insurance premiums are also set to increase. Premiums for minivehicles with engines no larger than 660 cc will be hiked by 4,400 yen to 26,370 yen.