Drivers with compulsory automobile liability insurance will have to pay about 4,000 yen more in fiscal 2005 because the government plans to phase out subsidies over the next four years, government officials said.
It will be the first jump in compulsory automobile liability insurance since fiscal 1985.
Government-authorized premiums are currently 33,470 yen for a two-year contract covering a private car. The subsidy cuts that to 27,630 yen.