What is the car insurance grade?
The automobile insurance grade is set from 1 to 20 grades for each contract, depending on the accident history and accident details of the previous year’s contract, the number of times the insurance has been used, and so on. When you take out automobile insurance for the first time, in principle, start from grade 6. The grade changes every year depending on the accident history and insurance usage.
Discounts are applied to premiums according to this grade. The higher the grade (the higher the number), the higher the discount rate (the lower the premium), and the lower the grade (the lower the number), the higher the premium.
If there is no accident for one year or if you do not use insurance, it will increase by 1 grade in the next year, and if you use insurance in an accident, it will decrease by 3 or 1 grade in the next year depending on the type of accident.
Conditions for the person who can take over the grade
There are conditions for those who can take over the grade.
The new registered insured person for the contracted car is limited to the following:
- Spouse of registered insured person
- Cohabiting relatives of registered insured person
- Cohabiting relatives of spouse of registered insured
Person other than spouse living together You should be careful. If your child wants to buy a car or take over the grade on occasions such as going to school or getting a job, if you plan to live separately, take over the grade while you live together.
Procedures for taking over the automobile insurance grade
What is the procedure for taking over the grade?
I will explain in a common case.
I have one insurance policy for my parent’s car, and my child living with me bought a new car, so I need to sign a new one. At this time, if you make a new contract for the insurance of the child living together, the insurance premium will be high, so I would like to pass on the higher grade of the parent with the premium discount to the child living together.
- Car replacement of the car of the parent’s contract (A contract) currently subscribed to the car of the child living together
- Name of the parent’s contract (A contract) Parent ⇒ Living together (Now the parent’s grade can be passed on to the child living together.)
- The parent contracts a new car insurance (B contract)
About grade transfer when the registered insured person dies
Even if the registered insured person dies, the car insurance grade can be passed on to the family. In this case as well, the grade can be inherited only by the spouse of the registered insured person, the cohabiting relative of the registered insured person, and the cohabiting relative of the spouse of the registered insured person.
When you take over the grade, the registered insured person will change, so the relationship with each family member will change. Please note that if you have conditions such as spouse limitation, the coverage will change depending on the change in the registered insured person. Let’s review the incidental conditions so that we can properly cover the range that requires compensation.
Also, if you let go of your car and do not want to take over the grade immediately, you can maintain the grade for 10 years by issuing a Certificate of Suspension.
How to transfer grades between insurance companies?
When you switch insurance companies, you can basically take over the previous grade. However, please note that some mutual aid may not be able to transfer the grade to the non-life insurance company.
In the case of adult automobile insurance, it is possible to take over the grade only for the following mutual aid, and to quote and apply on the site.
- JA (Agricultural Cooperative) Mutual Aid
- National Automobile Mutual Aid (All Self-Aid)
- Nichifireren (All Japan Fire Mutual Aid Cooperative Association) Includes the former Small and Medium-sized Enterprise Mutual Aid contract.
I take over the grade? When taking over the grade between insurance companies, if the grade is changed during the contract period, it will expire. However, if there is no accident for one year, the timing of the grade increase will be extended and the insurance premium may increase. Since conditions such as insurance premiums and discounts vary depending on the insurance company, the timing of maturity is not always good, but consider the timing of switching to automobile insurance carefully.
Also, in principle, the maturity date (or cancellation date) of the previous insurance and the coverage start date of the next insurance should be the same so that there is no uninsured period.
If the next insurance coverage start date has passed the maturity date and is not within 7 days from the day after the maturity date, the grade cannot be taken over.
If there is a period of time between letting go of a car and buying the next one, it is a good idea to issue a Certificate of Suspension to retain the grade.
If you cannot take over the automobile insurance grade even if you meet the conditions
Even if you meet the conditions introduced so far, you will not be able to take over the automobile insurance grade in the following cases.
When there is a period until the next compensation start date after the insurance expires or is canceled
If you do not take out new car insurance after canceling or expiring your car insurance, you must meet the conditions for issuing a suspension certificate, and if you do not issue a suspension certificate within 13 months, the grade will be reset and 6 (S) will be issued again. You will start from the grade.
In addition, even if you continue to have automobile insurance, you will not be able to take over the grade unless you complete the procedure for renewal within 7 days from the day after the maturity date.
When the contract is canceled by the insurance company
If the contract is canceled by the insurance company due to reasons such as nonpayment of insurance premiums, the automobile insurance grade cannot be taken over.
How you use your car varies greatly depending on your family structure and lifestyle. Let’s use the grade transfer system appropriately according to the car life of yourself and your family.