Vehicle insurance
People who own a car or motorbike must have compulsory automobile liability insurance. If you drive a car without automobile liability insurance, you are liable for a fine of up to 500,000 yen or imprisonment of up to one year, and your drivers license will also be taken away. "Liability" means that if you injure someone else in an accident this will be covered by an insurance payout, but as the amount of compensation is low you will have greater peace of mind if you purchase additional voluntary insurance.