Second-Car Discount Eligibility Checker & Grade Simulator
Check whether a second (or additional) car qualifies for Japan's second-car discount (a grade-7 start) from the first car's grade, whether the named insured and owner are individuals, the vehicle categories, and how the named insureds are related. If it qualifies, it also estimates the annual premium difference between a grade-6 and a grade-7 start.
Second-car discount eligibility conditions
When all of the following conditions are met, a second (or later) new policy can start at grade 7 instead of the usual grade 6.
| First car's grade | The first car's no-fleet grade must be 11 or above on the start date of the second car's policy, and that start date must fall within the first car's policy period. |
|---|---|
| Policyholder and vehicle owner | The named insured and the owner of the second car must both be individuals. A company as named insured or owner is excluded (when a finance or leasing company is the owner, the user on the inspection certificate is usually treated as the owner). |
| Vehicle use and class | Both vehicles belong to one of the "8 personal-use vehicle classes" (regular passenger car, compact passenger car, kei passenger car, light truck up to 2 tons, and similar classes intended for personal use). |
| Named insured and owner relationship | The named insured of the second car must be the first car's named insured, that person's spouse, or a relative living with either of them. The owner of the second car must likewise be one of these people or the owner of the first car. What counts is the named insured, not the policyholder. |
The second-car discount is a discount rule that Japanese insurers commonly apply within the no-fleet grade system. Exact conditions are set by each insurer, so confirm the official eligibility with the insurer you plan to contract with.
What Japan’s second-car discount is
The second-car discount lets a new voluntary motor policy in Japan start at grade 7 instead of the usual grade 6 when it is the second or a later vehicle. One grade higher means a larger discount, so the first year costs less on otherwise identical terms. Despite the name, a third or fourth car qualifies on the same footing if the conditions are met.
Four conditions must all hold. The first vehicle's no-fleet grade must be 11 or above on the second policy's start date; the named insured and the owner of the second vehicle must be individuals (companies are excluded); both vehicles must fall within the eight private vehicle categories; and the named insured of the second vehicle must be the first vehicle's named insured, that person's spouse, or a relative living in the same household (a similar condition applies to the owner of the second vehicle). The test looks at the named insured, the person who mainly drives the car, not at the policyholder. This tool checks each condition in turn and tells you which one fails when a case does not qualify. Enter the quoted annual premium on a grade-6 start and it also estimates the difference against a grade-7 start.
Reference figures used in this calculation
The figures below are not set by law. They are reference values used as a guide, and the actual amounts differ from provider to provider.
- Rating factors for voluntary motor insurance (driver conditions, use of vehicle, excess, discount bands and so on) — Industry convention (a guide based on insurers' own product descriptions) （No unified official dataset exists） Last checked 2026-09-20
How to use the eligibility check
- Choose the first vehicle’s grade Select the grade of the policy you already hold. Below grade 11 the case fails at this point.
- Say whether both are individuals Tick the box if the named insured and the owner of the second car are both individuals. A company as named insured or owner puts the case outside the discount.
- Say what categories the vehicles fall in Indicate whether both belong to the eight private vehicle categories. A commercial registration on either side takes the case out.
- State the relationship between the named insureds Indicate whether the second car's named insured is the first car's named insured, that person's spouse or a relative in the same household. The test uses the named insured, not the policyholder. A relative living elsewhere does not count.
- Estimate the difference If you have a quotation on a grade-6 start, enter the annual figure. You then get an estimate of what a grade-7 start would save.
Tips for getting more out of it
- You can check the first car's grade on the policy certificate or the insurer's online account. Confirm the latest grade if the policy is several years old.
- The "8 personal-use vehicle classes" cover regular, compact, and kei passenger cars and light trucks used mainly for personal purposes; commercial and large vehicles may not qualify.
- If even one condition is not met, the new policy will not start at grade 7 and will instead start at the usual grade 6.
- Enter an estimated grade 6 annual premium to also see the estimated savings from a grade 7 start.
Where the check helps
Confirming before buying a second car
Who is named as the named insured (the main driver) decides whether the discount applies. Checking before the purchase lets you arrange the policy so that it qualifies.
Deciding whether to insure a child’s car in the family’s name
A relative in the same household qualifies; one living elsewhere does not. It is worth weighing alongside any plan to move out for study or work.
Seeing whether the first grade is high enough
If it falls short of 11, waiting a year for the grade to rise before taking out the second policy becomes a visible option.
Sanity-checking a quotation
From the size of the difference you can gauge whether the figure an insurer has offered rests on a grade-6 or a grade-7 start.
When you want to look at grades and endorsements more closely
For the effect of the grade itself, see the grade premium simulator; for limiting who may drive, the driver-scope endorsement comparison; for whether to claim at all, the claim break-even calculator.
Terms about the second-car discount
- Second-car discount
- The arrangement letting a qualifying second or later policy begin at grade 7. It is also called the multiple-vehicle new policy discount.
- No-fleet grade
- The grade from 1 to 20 applied to policyholders owning or using nine vehicles or fewer. The discount requires the first vehicle to stand at grade 11 or above.
- Named insured
- The person entered on the policy as the main user of the insured vehicle. It need not be the policyholder, and who it is bears on whether the discount applies.
- The eight private vehicle categories
- Eight categories premised on private use — ordinary private passenger cars, small private passenger cars, private light four-wheeled passenger cars, private goods vehicles up to two tonnes and the like.
- Relative in the same household
- A relative living under the same roof. Sharing a household budget is not enough if the address differs, so moving out for study or work takes the case outside the condition.
- Grade-6 start
- The grade at which an ordinary new policy begins. Where the second-car discount applies, it becomes a grade-7 start instead.
Frequently asked questions
Side Note — The second-car discount is an insurer rule, not an industry-wide system
The name "second-car discount" is industry shorthand, not an official term defined by law or a standard policy wording. The no-fleet grade rating system itself, set by the General Insurance Rating Organization of Japan, does not distinguish between a "first car" and a "second car" — each insurer builds this discount into its own product rules, which is why exact conditions and required documents can differ between companies.
The discount emerged as more households came to own multiple cars. A brand-new policy normally starts at grade 6 with no claim history, but if the same household already has a long claim-free record on its first car, the second car can reasonably be treated as a somewhat lower risk as well. Under the reference rates of the General Insurance Rating Organization of Japan, a new policy at grade 6 carries a 3% surcharge while one at grade 7 gets a 38% discount, a gap of about 41 percentage points, which is a meaningful difference for multi-car households.
In practice, insurers commonly ask for a copy of the first car's policy certificate or other proof of contract details when applying. Switching insurers can also make it harder for the new insurer to verify the first car's history, sometimes slowing down the process. Households that keep all their vehicles with the same insurer tend to find the paperwork goes more smoothly.