The discount rate of car insurance changes drastically as the grade increases


What is the non-fleet grade system in Japan?

Japanese automobile insurance has a non-fleet grade system. Damages in the event of an accident are sometimes too high to be paid by individual property. Many people take out car insurance just in case. However, all driving skills are different. Some have just got a driver’s license, while others have been driving without accident for over 10 years.

A driver who does not cause an accident and a driver who causes an accident. It is unfair for the same insurance premium. It is fair that the driver incurring an accident pays a lot of insurance premiums.

Non-fleet grade is a means to prove to non-life insurance companies how safe they are (the risk of accidents is low). Since it is a common system of the loss preservation company, the contractor can inherit the grade regardless of which company it is changed to.

The worst is grade 1, the best is grade 20

New car insurance starts at 6th grade. The only way to improve your grade is to spend one year without accident. There is no other way to raise the grade.

If you spend one year without any accidents, you will receive a nice reward the following year. For example, let’s say you have insurance for 100,000 yen for a new 6th grade. The discount rate for the 6th grade is 19%, so the insurance premium at this time is 81,000 yen. If there is no accident for one year, the grade will be 7 next year. Since the discount rate goes up to 30%, the insurance premium at this time is 70,000 yen. 11,000 yen will be cheaper. This is the amount of money you can enjoy for a delicious meal.

If no accidents continue for 14 years, it will reach the highest grade of 20. The insurance fee in this case is 37,000 yen. Conversely, if you join a class 6 and have two accidents, you will get a class 1. The insurance premium in this case is 164,000 yen. Even if you are in the same car, the insurance premiums are 4.4 times different due to the difference in non-fleet class.

It takes 14 years to earn a 20th grade, but nearly half of all car insureds have a 20th grade. If you are driving from the age of 18, you are in the 20th grade in your early 30s. Even if you drive up to 70 years old, the period of staying at the upper limit of 20th grade is longer.

There are various discount systems, but the best effect is not to cause an accident while driving safely.

Non-life insurance companies exchange grade information through an information exchange system
When you apply for a contract with a car insurance company, you declare your grade. I do not know whether it is intentional or wrong, but there are many people who declare high grade.

After signing the contract, it is structured to match the grade data with the insurance company of the previous year. If you make a mistake, your premium will be recalculated back to the date you signed the contract and you will receive an additional invoice. You cannot escape from the grade.

Accidents of 3rd grade down, 1st grade down, and not down

If you have a traffic accident, it is a proof of high driving risk, so you will go down 3 grades the following year. On the other hand, even if you make a claim for passenger injury, personal injury compensation insurance, lawyer special contract, family bike special contract that is not related to the driving risk of the car, the class will not be downgraded.

3rd grade down accident
A car accident is basically a 3rd grade down.

  1. Personal compensation accident (accident that injured another person)
  2. Object accident (accident that destroyed the property of another person)
  3. Self-injury accident (injury to one’s own car or body by itself

1st grade down accident
This applies to the causes of accidents that have vehicle insurance but are not related to driving risk (inevitable).

  1. Vehicle fire/explosion (almost never in practice)
  2. Vehicle theft (there are more requests than expected for high-end vehicles, etc.)
  3. Submergence and inundation caused by typhoons, tornadoes, floods, and high tides (bills will increase during typhoon season)
  4. Rogue or mischief (occasionally happens. If the criminal is found, we will compensate you)
  5. Collision with other objects in flight or falling (mostly window damage caused by stepping stones on highways)

No-count accident
It is an accident where the grade does not go down even if insurance is requested. This applies to insurance line items that are not related to the driving risk of the policyholder.

  1. Personal injury insurance
  2. Passenger accident insurance
  3. Family bike special contract
  4. Lawyer fee special contract

We have listed the main insurance and special contracts that can be contracted with car insurance, but depending on the insurance company, various special contracts can be attached, so please check the description of the company you subscribe for details. The concept of division is the same. Car insurance now also has a personal liability contract.

Some people who have suffered personal injury accidents dislike the increase in insurance premiums the following year and demand that “please make a settlement in the Compulsory Auto Insurance. I pay for pedestrian clothing etc.” .. There are people with various ways of thinking in the world. (In that sense as well, we recommend a personal injury compensation contract to protect yourself.)

Voluntary insurance companies are not agents of Compulsory Auto Insurance. As a voluntary insurance company, we will compensate the victim for damages. If you have a personal accident, you will be down 3 grades.

Grade deferred accident has been abolished

Currently, the accident is classified as one grade down accident, but previously it was treated as deferred grade.

If there is no accident, the rule is to move up to 1st grade the next year, but this kind of accident is not related to the driving risk of the contractor. It is an unavoidable accident if most occur. So even if I used insurance, there was a nice service that the grade should be the same the next year. However, the service has been discontinued.

Voluntary car insurance companies have a public mission but are private companies. An insurance company will go bankrupt if it does not raise insurance premiums if the income and expenditure deteriorates. The number of accidents of “written notes, mischief, stepping stones” that had been deferred for grades was very high. Insurers everywhere have set up a centralized center to handle accidents easily and handle claims like work. Since glass replacement with stepping stones is around 150,000 for domestic cars, I got the photo and quotation from the repair shop, subtracted the deductible amount and paid it to the factory. It takes less than 30 minutes from confirmation of the quote to payment. If you don’t have that speed, it won’t end.

If a vehicle is stolen, the vehicle is basically not discovered. Even if it is discovered, the vehicle is ridiculous, so we will make a loss (bikin, reserve for payment) with total loss. If 3 million cars are stolen, that’s more than the average repair cost of 10 cars. In most cases, if a car is submerged due to a typhoon damage, it is a total loss (accident that the full amount of insurance and insurance is paid).

An insurance company can’t do so much with deferment. Under such circumstances, the deferred class accident was abolished by Japanese non-life insurance company d from 2012 to 2013.

A system with a large discount effect on insurance premiums

Although it is a non-fleet class system that allows a maximum of 63% discount on insurance premiums, we cannot wait 14 years to reach class 20. Auto insurance needs to be renewed and paid annually. You need to reduce your insurance premiums each year before you reach the supreme 20th grade. Let’s seek the maximum compensation with reasonable insurance premiums using various discount systems.

Setting of deductible for vehicle insurance

Half of the automobile insurance premium is for the vehicle itself. If you do not contract the insurance of the vehicle itself, the insurance premium will be halved, but it is too risky to drive a car that has months of salary without insurance. Therefore, by excluding the vehicle insurance deductible amount of 100,000 yen for the first time, 100,000 yen for the second time, 0 yen for car-to-car exemption, you can save a lot of insurance premiums.

Insurance is not used for damages of 100,000 or less. (It cannot be used correctly) A divisor is required, but this will greatly reduce the insurance premium. The amount of vehicle insurance is 600,000 yen, which is an old car, but I set the deductible amount at 100,000 yen.

Apply Internet discount

In Japan’s non-life insurance industry, the agency system is the main focus. Car dealers and auto supply stores sell insurance. The sales department of a non-life insurance company mainly supports car dealers and auto supply stores. They do not sell themselves. Of course, car dealers and auto supply stores will be charged sales fees, and policyholders will pay insurance premiums that include those fees. The era is a direct sales model. If you purchase the product directly from the non-life insurance company, the contractor does not have to bear the sales commission.

Insurance company name new contract Renewal contract
Zurich insurance
Sony Assurance
10,000円割引 2,000円割引
E-design Sompo
10,000円割引 10,000円割引
AXA direct


20,000円未満 2,000円割引


20,000円未満 →1,000円割引

Mitsui Direct


60,000円未満 →7,000円
40,000円未満→ 4,000円


Application of collision damage reduction brake discount

It is a discount system introduced from 2018. There is a bond within 3 years from the release date, but you can get a big discount of 9%. In fact, accidents can be greatly reduced simply by preventing collisions. Half of the invoiced accidents are rear-end collisions. An accident will not occur if the automatic braking is activated to prevent a rear-end collision, so the insurance company will not have the opportunity to pay the insurance money. The amount is returned to the insurance premium.

Three years after the release date, this application will disappear, but at that time the insurance premium itself is easy, so you do not have to be disappointed. Accident information is stored for three years, and since there are few accidents in this car model with this automatic brake, it is a mechanism to bear the insurance premium based on the accident risk of the car model.

The number of traffic accident casualties, which used to be close to 1.2 million people a year, is 460,000 in 2019. It is less than half. In addition to the progress of legislation on strict penalties for drunk driving and the impact of awareness-raising activities, the results of the evolution of automobile technology are emerging. If you buy a car, you have a car with a collision damage reduction brake.