Insurance in Japan: Your 4-Part Survival Guide Part 4: Driving, Pets, and Unemployment—What You Might Overlook, But Shouldn't
You’ve made it through the essentials: health, life, income, and property insurance. Now, let’s talk about the everyday risks that expats often overlook—but really shouldn’t. If you drive, have a pet, or want financial security during unexpected job changes, this guide is for you.
1. Car Insurance (自動車保険 / Jidousha Hoken)
Can Expats Buy Car Insurance in Japan?
Yes. Most insurance companies accept foreign residents if you:
Live in Japan (owning or renting is fine)
Have a Japanese bank account for premiums and claims
Hold a valid residence card
Understand insurance terms in Japanese (or have someone assist)
Have a valid driver’s license (International licenses are accepted temporarily, but you’ll need a local license eventually)
a. Compulsory Insurance (自賠責保険 / Jibaiseki Hoken)
This basic insurance is legally required when registering any vehicle.
What it covers:
Bodily injury or death to third parties only
Does not cover vehicle or property damage
Limited payouts:
Up to ¥30 million for death
Up to ¥1.2 million for injury
Up to ¥40 million for permanent disability
Penalties for driving without it:
Up to 1 year in prison or ¥500,000 fine
6 demerit points on your official driving record
¥300,000 fine for not carrying proof of insurance
Key Point:
Jibaiseki covers the vehicle, not the driver—so if you borrow a family member’s car, you’re still covered by this.
b. Voluntary Insurance (任意保険 / Nin-i Hoken)
Optional—but essential. Without it, you're on the hook for your own and others’ property damage, legal fees, and personal injuries.
What it covers:
Bodily injury or death including a driver
Property damage
Car repairs
Legal costs
Roadside assistance (optional add-on)
Natural disaster coverage
Typical Monthly Costs for Drivers in Their 40s:
Without vehicle coverage: approx. ¥2,600/month
With vehicle coverage: approx. ¥4,200/month
(Varies by age, car type, and coverage)
Tip: If you're leasing or renting, coverage may be bundled—check with your provider. If you own your car, compare providers like SBI, Sompo Japan, and Mitsui Direct. Use kakaku.com for side-by-side quotes.
My Case:
We own a 12-year-old Audi A1 (only 22,000km).
Parking: ¥2,000/month
Sompo Japan - Insurance (with vehicle + spouse): ¥6,700/month
Annual inspection: ¥100,000 (Basic only)
Gas: ¥4,000/month
We don’t drive much—but insurance is still a must.
2. Pet Insurance (ペット保険 / Petto Hoken)
Japan is a pet-loving nation. Veterinary care can get expensive, and pet insurance helps cover those costs.
What it covers:
Illness (e.g., cancer, diabetes)
Accidents (e.g., broken bones, swallowed objects)
Surgery and hospitalization
Some plans include routine care or vaccinations
Costs:
Typically ¥2,000–¥5,000/month
Annual payout limits vary (e.g., ¥1 million/year max)
Providers: Anicom, Pet & Family, iPet
(Sites are all in Japanese – Sorry!)
My Case:
Our 11-year-old wired-hair dachshund, Jäger (from Chicago!), takes steroids every other day for an immune system problem.
Monthly meds: ¥20,000
Occasional blood tests: ¥6,000
If we had started pet insurance earlier, we could’ve saved a lot. Start young if you’re considering it.
3. Unemployment Insurance (雇用保険 / Koyou Hoken)
If you’re working in Japan on a salaried contract, you’re probably already enrolled in this.
Eligibility:
Enrolled through your employer
An employment contract of 31 days or more, working 20 hours or more per week, and not being a student.
Benefits:
About 50–80% of your average salary (taxable)
Lasts 3–12 months, depending on age and employment history
Faster payments if laid off or let go due to company reasons
You must job-hunt and visit Hello Work regularly
Tip: If you resign voluntarily, there's a 2–3 month waiting period before benefits start. But if your company ends your contract or encourages resignation due to restructuring, you may be eligible for faster support.
Important:
Check your 離職票 (Rishoku-hyo) when you leave. If your departure is marked as “involuntary” (会社都合), you’ll get faster access to unemployment benefits. In case of resignation recommendation (退職勧奨), it has be to be mutual agreement. Although you agreed it, it is still “involuntary” (会社都合). So always double-check this!
Self-employed/Freelancers:
Not covered by default
Consider building your own emergency fund
Private unemployment insurance is rare but emerging
✅ Wrap-Up: Know What Each Type of Insurance Covers
Driving: Get voluntary insurance—Jibaiseki isn’t enough.
Pet parent: Consider insurance early in your pet’s life.
Working: Know your rights and benefits under Japan’s unemployment system.
That wraps up our Insurance Series—hope it helped you feel more confident about navigating insurance in Japan!
📄 Download the Japan Insurance Glossary Cheat Sheet—available now in the Freebie Shelf. It's a handy reference with key insurance terms in English and Japanese.