A Local Perspective on Life in Tsukuba, Ibaraki, Japan.

Frugal(ish) Option for Putting your Child on Your Car Insurance Policy

Not sure how many of our readers have children who are old enough to drive, but those of you who do might find this useful. I found this information in the latest JAF Mate magazine and thought I would share it.


Q: I have an age limit set on my optional car insurance. Only people over 35 years of age can be covered as drivers under my policy. However, my son just got his license and I want to add him to my policy. Which is more frugal: removing the age limit or adding my child as a supplemental driver?

A: It is cheaper to add your child as a supplementary driver. You can add a “special supplementary contract for one’s children” (子供特約, kodomo tokuyaku) to your policy and keep your regular age limit intact. Your insurance premiums will still increase, but you will pay marginally less with the special contract than you would with no age limit.

For example:

Current payment: 32,830 yen per year (paid in one lump sum) for your current policy with the age limit
Policy with no age limit: 82,070 yen per year (paid in one lump sum)
Policy with age limit intact and special supplementary contract for children: 73,440 yen per year (paid in one lump sum)

The child must live with you and the car cannot be used primarily by the child. Other conditions may apply, so please contact your insurance provider for more details.

(These rates were calculated with the primary driver being the father, holding a grade 12 policy and a gold license, with the car being using mainly for leisure and daily activities. They are also based on specific rates of reimbursement in case of accident, the age of the father and the son, and the year and make of the car. The figures are from Tokio Marine Nichido)

From: JAF Mate magazine June 2007 (Vol. 45, No. 5, page 53)

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