Auto insurance is essential for anyone who owns a car. In the unlikely event that an accident occurs, it will compensate for damage, so it can be said that it is good manners for a driver to have car insurance.
However, the more comprehensive your car insurance is, the more expensive your insurance will be. It can be said that it is one of the causes of pressure on the maintenance cost of the car, so I would like to finish it as cheaply as possible. What is the point of reviewing insurance premiums?
This time, we will explain in detail the average market price of voluntary car insurance and how to reduce the insurance premium.
What is the average car insurance?
According to a survey by the Property and Casualty Insurance Rating Organization , the number of automobile insurance contracts in fiscal 2019 was 67,684,839 units, and the total insurance premium was 3,913,049,271 yen.
By simply calculating the average amount from this, the result was about 57,813 yen/year per vehicle.
However, this figure is just an average value for the entire contract and does not necessarily fall within this category. Auto insurance premiums vary depending on a number of factors, such as age and length of contract.
Car insurance premiums vary from person to person.
Auto insurance rates are determined by various conditions.
The conditions for determining insurance premium rates are determined based on various statistics issued by the General Insurance Rating Organization, and are calculated based on three principles: “reasonable, appropriate, and not unfairly discriminatory.”
Conditions that determine car insurance premiums
Voluntary insurance premium rates are determined mainly by age, accident history, vehicle type, mileage, and scope of coverage. Specifically, the following 8 conditions are the basis, so let’s check them one by one.
Contractor’s age
Statistics show that the younger the age, the higher the accident rate, so the younger the policyholder, the higher the premium rate. Under 21 years old is “all age coverage”, 21 to 26 years old is “over 21 years old coverage”. is set.
Accident history (for non-fleet contracts)
In general, automobile insurance is divided into non-fleet grades, with premium rates ranging from grade 1 to grade 20.
New contracts start from grade 6, and if there are no accidents for one year, the grade goes up by one.
The higher the grade, the lower the risk of an accident and the lower the premium, and the lower the grade, the higher the risk and the higher the premium.
Also, even if the grade is the same, the insurance premium rate varies depending on whether or not there is an accident history, so it is not possible to know the insurance premium just by looking at the grade.
car model
The risk varies depending on the type of car, such as the purpose of using the car (private or business), whether it is a standard car or a light car, and the insurance premium rate changes.
In addition, since new cars are said to have a lower risk of accidents, the first registration date (model year) also affects the premium rate.
car model
According to statistics, risk fluctuations can be seen depending on the type of automobile, so insurance premium rates are also set for each type.
Premium rates are divided into classes 1 to 17 for private ordinary and small passenger cars, and classes 1 to 3 for light cars, according to the class applied to each model. (Previously, the premium rate for mini vehicles was uniform, but was revised from January 2020.)
In addition, premiums for vehicles with high safety performance such as “collision damage mitigation brakes,” which are expected to reduce the risk of accidents, will increase. is getting cheaper.
number of cars owned
Auto insurance requires a contract for each car, so insurance premiums vary depending on the number of cars owned. If you meet the conditions set by the insurance company for the second and subsequent cars, there are cases where a system where the insurance premium is discounted is applied.
In addition, since the risk measurement method is divided according to the contract scale, if the total number of units owned is 10 or more, it will be a “fleet contract”. If you have a large number of cars, such as a corporation, it will be a fleet contract.
Annual mileage
Each insurance company has different calculation standards, but the annual mileage is also involved in the premium rate. The higher the mileage, the higher the insurance rate, because the risk of an accident increases.
The main usage, such as daily use or commuting to work or school, is also a factor in determining the insurance premium rate.
Insurance amount
Insurance premiums will also vary depending on how much you set the amount of compensation you will receive in the event of an accident.
For example, if it is an interpersonal compensation, there is a possibility that the insurance premium can be reduced depending on the amount set, such as whether it is unlimited or up to 50 million yen.
In particular, if you add vehicle insurance, the insurance premium will be higher, so be sure to remove unnecessary coverage and prepare only the coverage that you really need.
driver range
If it is clearly defined who will drive the insured vehicle, the insurance premium will be cheaper if the range is set. Specifically, you can select either “Limited to the subscriber” or “Limited to the subscriber and spouse”. Please note that you cannot specify the range of drivers if there are people other than yourself and your spouse who are driving.
How to get cheaper car insurance
Voluntary insurance is basically insurance to cover the lack of compensation in compulsory automobile liability insurance, but there is also a disadvantage that insurance premiums will increase as much as compensation is added.
In addition, the fact that insurance premiums are higher the younger you are, is a fact that young people are hesitant to enroll in voluntary insurance. If you want to lower your costs even a little, try the three methods listed below.
Get quotes from as many insurance companies as possible
Recently, there are sites that provide a service that allows you to get quotes from multiple insurance companies all at once from the Internet.
It is recommended that you review your insurance policy annually, as different insurance companies have different premium rates.
Just enter the necessary information and you can get a quote in about 5 minutes, so please give it a try.
Also consider direct type
There are two types of voluntary insurance, the agency type and the direct type, and since the agency fee is not included, the direct type tends to be cheaper.
For those who do not have knowledge of insurance and do not know which coverage to choose, the agency type is safe because you can directly ask the person in charge about any unclear points, but the direct type also responds kindly to inquiries by phone or email. will give It is said that there is not much difference between the two in terms of response in the event of an accident, so if you want to keep your premiums low, you can choose the direct type without hesitation.
Take advantage of internet discounts
If you apply directly, you may be able to receive a discount if you apply online. If you want to save even a little bit, you have no choice but to use the Internet.
In addition, some insurance companies have adopted a system that offers discounts simply by issuing insurance policies online. Taking full advantage of discounts will help you save money on your insurance premiums.
Let’s review whether there is no waste insurance plan
Once you have decided on your insurance company and coverage details, make sure that there is no waste at the end. We recommend that you check whether the coverage and amount of compensation for the driver are appropriate, and whether there are unnecessary special contracts, etc., and create an insurance plan that suits you.
summary
This time, we have explained in detail the average market price of voluntary car insurance and how to reduce the insurance premium.
The average market price for voluntary insurance was about 58,000 yen per year, but this is just the average value for all conditions, and the actual premium varies depending on various factors such as the age of the policyholder, accident history, vehicle type, and compensation amount. .
In order to keep insurance premiums as low as possible, it is recommended to take measures such as using the Internet or direct insurance, or limiting the scope of coverage.
Let’s set up a plan without waste and enroll in voluntary insurance that suits you.
