All JETs have the right to own a car, even JETs who do not live in driving placements. Please keep in mind that car ownership is a serious responsibility. You will be required to obtain sufficient insurance, pay for shaken (mandatory automobile safety inspections every 2-3 years), as well as registering a parking space with the local police.
Driving to Work
According to the CLAIR model contract, JETs are allowed to drive to and from work but must obtain permission from their supervisor to drive during work hours or for work purposes. Some contracts may limit or restrict driving during work hours. Certain contracting organizations do not allow JETs to drive to and from work. Each contract may vary, so please check your individual contract.
Types of Cars in Japan
There are two main types of cars you’ll see on Japanese roads—regular cars, and kei cars.
The difference between regular cars and kei cars is the power of the engine. The maximum engine size for a kei car is 660cc – not much, compared to the 1500cc of a Honda Civic, for example, and consequently, the car itself is also usually quite small. Regular cars have white license plates while kei cars are issued yellow license plates. While regular cars tend to be safer and more powerful, kei cars are cheaper to run. Kei cars are given discounts for most toll roads, ferries, and parking fees as well as insurance rates.
Should I Rent or Buy a Car?
Opinions vary! Listed here are some pros and cons of buying and renting.
Renting Pros
- The dealer will take care of most (if not all) of the paperwork for you.
- In the event your car is un-drivable, your dealer will most likely provide another car until your car is fixed.
- The dealer is responsible for updating and paying for shaken.
- You do not need to worry about selling the car when you leave.
Renting Cons
- Monthly rental fees can be expensive (if you are here longer than a year, renting tends to be more expensive than buying).
Buying Pros
- Once you pay for the car, you will not have to make monthly payments. (Over two or three years, it is usually cheaper to buy rather than rent a car).
- If you are able to sell the car when you leave Japan, you are able to get at least some money back.
Buying Cons
- In the event of an accident, you will be responsible for all of the paperwork and payments, although your insurance should help or entirely cover the payments.
- You are responsible for updating and paying for shaken.
- You will have to either sell or pay for the disposal of your car when you leave Japan.
How much will it cost to get a car?
Depending on the age, make, and condition of the car, you should be able to find a used car for 50,000 to 300,000 yen. Be sure to ask when the car is due for shaken as this can be an additional 60,000 to 100,000 yen expense. Shaken is required every 2-3 years.
Passing down the car
If you buy a new car or a used one, you will have to pay a special “recycling fee” known as 「リサイクル預託金相当額合計」(risaikuru yotakukin sōtō gaku goukei). If you give your car to someone else, they will pay this portion and the cost will be refunded to you. In the case your car is totaled, the amount you payed will not be returned.
Make sure to keep this receipt somewhere safe.
Getting Car Insurance
If you buy or rent your car from a car dealership, you can sort out your insurance through the dealer. Most dealers will be able to offer you affordable and reliable insurance. Your town hall may also offer a car insurance plan.
If you purchase a car outside a dealership (i.e. from another JET), you can also visit a local car dealership to obtain insurance, or go straight to an insurance office. Insurance in Japanese is hoken 「保険」 or sanpo 「損保」 (non-life insurance). Some mechanics may also be willing to help with insurance and other paperwork.
Choosing the right insurance
When you get your car insurance, it is beneficial to make sure you have a plan that not only covers damage to another person’s car but also to your own. There are JETs who got into a car accident in which they were held liable. They did not sign up for insurance that would help cover repair costs to their own vehicle which meant they did not have adequate coverage. As a result, they had to buy a new car.
The more the insurance covers, the more you pay per month so it is up to you which plan you want to sign up for.
How much does car insurance cost?
The cost of insurance varies depending on your:
- Age
- Driving record
- Car model
- The amount of coverage you wish to have
Japan offers compulsory insurance that provides limited coverage in the event of injury or death caused to a third party while operating a motor vehicle as well as optional insurance (strongly recommended) that will cover damage to the vehicle. Insurance plans can range from about 36,000 yen to 200,000 yen per year, payable in monthly installments or lump-sum.
How car insurance works in Japan
The insurance system in Japan is a numerical system where the better your driving record is, the higher your number is. The higher your number is, the cheaper your insurance becomes. (Your driving record in your home country is pretty much irrelevant.)
All drivers start at the number 6. Each year that you have a perfect driving record (no accidents or major traffic violations), your insurance number goes up one number. (i.e. if in your first year in Japan you are not involved in any accidents, your insurance number for your second year will be 7).
For each year with a perfect driving record, you can expect your insurance payments to drop 10,000 to 50,000 yen per year. If you do happen to have an accident, your insurance number drops 3 points (i.e. if you have one accident in your first year, your insurance number drops from 6 to 3).
If you only have one accident your insurance cost should still go down after one year, but only slightly. More than one accident and you should expect a significant raise in your insurance costs.
Insurance costs are also lowered for anyone over the age of 26 or for anyone that obtains a blue or gold license (color depends on Japanese driving record). Green licenses are the tier issued to anyone receiving a new license. It takes several years of good driving to reach subsequent tiers.
