Insurance Premiums to Rise up to 15 Percent for Pricey Import Cars

It is expected that insurance premiums for expensive cars, including import cars, will rise up to 15 percent beginning next year.

Jeon Yong-shik, a research fellow at the Korea Insurance Research Institute, insisted that insurance premiums for drivers’ own cars be raised to address a problem where drivers of low-priced vehicles go bankrupt or face a sharp increase in their auto insurance premiums after causing accidents involving luxury import cars in a public hearing on the rationalization of auto insurance for expensive vehicles at the Federation of Small and Medium Business in Seoul on Oct. 13.

“It is necessary to elevate auto insurance premiums for vehicles with repair costs 120 percent or more of the average of repair cost of all vehicles,” Jeon said. “The repair cost for eight domestic models and 38 foreign models are 150 percent or more of the average repair cost of all vehicles.”

“We will make the final draft by taking into account opinions expressed in the public hearing based on the draft made public on the day,” said Jin Tae-kuk, head of the Insurance Supervision Department at the Korea Financial Supervisory Service.