Japan (JP)
Japan is one of the world's most captivating destinations for expats — a country where ancient temple culture and ultra-modern technology coexist seamlessly.
Insurance Guide
Which insurances you actually need in Japan, prioritised.
Japan has mandatory public health insurance (NHI or Shakai Hoken) for all residents, and voluntary car insurance is legally required for all drivers. Beyond these, Japan's insurance market is sophisticated — earthquake insurance deserves special attention given Japan's seismic reality. The Japanese insurance market is one of the world's largest, with competitive pricing and comprehensive products.
Legally Mandatory
- - National Health Insurance (国民健康保険) or Shakai Hoken (社会保険) — all residents must be enrolled
- - Compulsory Automobile Liability Insurance (自動車損害賠償責任保険 / Jibaiseki) — mandatory for all vehicles including motorcycles
- - National Pension (国民年金 / Kosei Nenkin) — all residents aged 20–59 must contribute
- - Employment Insurance (雇用保険) — mandatory for most employed workers
- - Long-Term Care Insurance (介護保険) — mandatory for all residents aged 40+
Earthquake Insurance (地震保険 / Jishin Hoken)
Covers damage to your home and contents caused by earthquake, volcanic eruption, or tsunami. In Japan, earthquake insurance is only sold as a rider to fire insurance — it cannot be purchased standalone.
Who needs it: EVERYONE who rents or owns property in Japan — seismic activity is constant and major earthquakes can strike any region.
Annual cost: ¥8,000–30,000/year for renters (contents only); ¥15,000–80,000/year for homeowners (structure + contents). Government subsidy keeps premiums uniform across insurers.
The Japan Earthquake Reinsurance Co. backs all policies — premiums and payouts are government-regulated. Coverage is partial (50% of fire insurance sum for structure, 50% for contents). Payouts are on a fixed scale based on damage assessment (全損 total, 大半損 major, 小半損 minor, 一部損 partial). Consider supplementing with comprehensive renters insurance that covers earthquake contents.
Renters Insurance (火災保険 / Kasai Hoken — for renters)
Covers fire, explosion, water damage, and burglary for rented apartments. Almost always required by landlords as a condition of rental. Includes liability coverage (借家人賠償責任) for accidental damage to the landlord's property.
Who needs it: All renters — landlords almost universally require it as a lease condition.
Annual cost: ¥8,000–20,000/year for a 1K apartment in Tokyo, including earthquake rider
Do NOT just accept the insurance package your real estate agency offers — you are legally free to choose any insurer. Comparing independently can save ¥10,000–20,000/year. The key coverage to check: 借家人賠償責任 (landlord liability — covers accidental damage to the rented property), 個人賠償責任 (personal liability), and 家財 (contents).
Personal Liability Insurance (個人賠償責任保険)
Covers accidental damage or injury you cause to third parties — at home, on a bicycle, or in daily life. Covers legal defence costs and compensation payments.
Who needs it: Everyone, especially cyclists — Japan has very strong civil liability for accidents.
Annual cost: ¥1,500–5,000/year (often bundled free with renters or car insurance)
Many people have this through their renters insurance without knowing. Check your existing policies before purchasing separately. Important for cyclists — bicycle accidents causing injury can result in enormous liability (a Japanese court awarded ¥95M in a bicycle accident case). Some municipalities now require cycling liability insurance.
Voluntary Auto Insurance (任意保険 / Ninin Hoken)
Comprehensive coverage beyond the mandatory Jibaiseki (compulsory third-party liability). Covers your vehicle damage, voluntary third-party property damage, and accidental injury beyond Jibaiseki limits.
Who needs it: All car owners — mandatory Jibaiseki only covers injury to others with very limited limits (property: ¥0, personal injury: ¥30M per victim). Without voluntary insurance, a serious accident could result in personal financial ruin.
Annual cost: ¥40,000–150,000/year depending on vehicle, age, driving record, and No-Claims Discount (等級)
Japan uses a No-Claims Discount (NCD) system with grades 1–20 (等級 / tōkyū). Grade 6 for new drivers, improving with each claim-free year. Grade 20 = maximum discount (~60% off). Driving record from your home country may help start at a higher grade — ask your insurer about international equivalency.
Travel Insurance (旅行保険)
Covers medical expenses, trip cancellation, lost luggage, and emergencies while travelling outside Japan. Japanese health insurance does NOT cover overseas medical treatment.
Who needs it: All residents who travel internationally — also required for the Digital Nomad Visa.
Annual cost: ¥5,000–30,000/year for annual multi-trip policies; ¥1,000–5,000 per single trip
Annual travel insurance (年間パッケージ) is cost-effective if you travel multiple times per year. Credit cards (especially premium cards) often include travel insurance — check your card benefits.
Life Insurance (生命保険 / Seimei Hoken)
Term or whole-life coverage. Japan has very high life insurance penetration — many Japanese are over-insured through expensive whole-life products pushed by door-to-door insurance agents (生保レディ). For expats, straightforward term insurance is usually sufficient.
Who needs it: Those with dependants, mortgages, or financial obligations in Japan or their home country.
Annual cost: ¥20,000–120,000/year depending on age, coverage amount, and policy type
Many employers provide group life insurance as part of their benefits package — check before purchasing. Be cautious of the highly aggressive in-person insurance sales industry in Japan — compare online first. Term insurance (定期保険) is far more cost-effective than whole-life or variable life products for most people.
Cancer Insurance (がん保険 / Gan Hoken)
Lump-sum or income replacement payment upon cancer diagnosis. Covers treatment costs beyond NHI, income loss during treatment, and transportation to specialised cancer centres.
Who needs it: Those with family history of cancer; particularly recommended given Japan's ageing population and high cancer rates.
Annual cost: ¥20,000–60,000/year
Japan has the highest cancer incidence rate in Asia. The national cancer treatment system is world-class but expensive for advanced treatments. Cancer insurance is very popular in Japan — over 50% of Japanese households hold some cancer insurance.
Comparison sites
Do not sign insurance at the real estate agency when renting — you are legally free to shop independently and can save significantly.
Check your employer benefits package thoroughly before buying individual life, medical, or travel insurance — many Japanese employers provide comprehensive group benefits.
Earthquake insurance is government-backed and all insurers offer identical earthquake coverage — the differentiator is the bundled fire insurance and contents coverage.
Credit card benefits often include travel insurance, purchase protection, and even some medical coverage — check your card terms carefully.
Use an independent insurance broker (保険代理店) rather than a direct insurer agent to compare across multiple companies — brokers are free to use.
Insurance
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