Japan's auto insurance premiums set to rise in 2026

A rating organisation intends to raise its reference premium rates by an average of 5.7%.

The premiums of automobile insurance in Japan are projected to increase further in 2026, thanks to heightened traffic accident rates and increasing repair fees due to inflation, reported Jiji Press.

The General Insurance Rating Organization of Japan, which comprises nonlife insurers, intends to raise its reference premium rates for optional insurance by an average of 5.7%, according to sources familiar with the matter.

Each fiscal year, the rating organisation reviews its reference rates based on insurance payouts and related data. 

The planned rate hike, aimed at addressing higher claim payments, will soon be reported to the Financial Services Agency. Insurance companies are expected to adjust their premiums accordingly, potentially implementing these new rates as early as January 2026.