Car insurance is necessary to prepare for an accident. For vehicles, liability insurance is mandated by law.
Everyone with a car or bike must take out Liability Insurance. How is the compulsory Public Liability Insurance premium determined?
In this article, we will introduce the premiums for compulsory automobile liability insurance.
Liability insurance is mandatory
One type of mobile insurance is General Liability Insurance. If you are driving a car or motorcycle (including a bicycle) on a public road. All automobiles and motorcycles must have “California Insurance” or “California Mutual Aid” coverage. It is referred to as “compulsory insurance.”
If you drive without joining. You will be uninsured and will be subject to a penalty of “custody of up to 1 year or a fine of up to 500,000 yen” I will. In addition, You must carry your automobile liability insurance certificate when you drive. Please be aware that you could face fines of up to 300,000 yen if you don’t have the certificate.
In addition, Driving without insurance will result in a traffic violation, and then you score 6 violations. Your driver’s license will be suspended right away. Keep this in mind if you drive a car or a motorcycle on public roads. You must take out liability insurance.
How much is the premium for compulsory automobile liability insurance per month?
How is the mandatory Public Liability Insurance premium determined? The General Liability Insurance Rating Organization of Japan calculates. The insurance premiums are based on the status of traffic accidents. And the status of insurance payments and report them to the Financial Services Agency.
The “Automobile Liability Insurance Council” held by the Financial Services Agency in January every year determines the insurance premiums for enrollment after April 1 of that year.
The premiums for compulsory automobile liability insurance in the first year of Reiwa are as follows. Parentheses represent the cost per month. Further, insurance premiums vary depending on the region. Please refer to the Ministry of Land, Infrastructure, Transport and Tourism’s Public Liability Insurance portal site for details.
In this way, the premium for compulsory automobile liability insurance varies depending on the purpose of using the car (for private use, business use, etc.). Then a number of months will be used to calculate insurance rates in addition to creating risk categories.
Liability insurance coverage
There is a cap on the maximum amount that may be spent on the necessary automobile liability insurance.
The purpose of compulsory general Liability Insurance is to secure basic compensation for victims of accidents, It is paid up to a specific amount of insurance money, as per Cabinet Order. Insurance claims paid according to damages have a payment limit for damages caused by injury, death, or disability.
The premium and coverage of compulsory automobile liability insurance are the same regardless of the insurance company.
Dealers of cars, motorcycles and non-life insurance companies are places where liability insurance can be obtained (unions). The bare minimum of compensation needed by law to relieve sufferers is auto liability insurance. There is no difference between insurance firms because insurance premiums are based on the use and kind of the vehicle as well as the policyholder’s location.
Regardless of which insurance company you contract with, the coverage and premiums will not change, and you will be responsible for the amount that exceeds the compensation limit. In other words, it is important to understand that general liability insurance does not cover a large amount of compensation in the event of becoming a perpetrator of a serious accident.
You can improve your preparedness for an auto accident by combining the necessary Public Liability Insurance with optional insurance that covers losses not covered by general liability insurance. Why don’t you understand the purpose and coverage of automobile liability insurance correctly and reconsider your own automobile insurance?