Import Car Premiums to See Sharp Hike Next Year

From next year, among the 206 total foreign and local models, 66 car models will see raised insurance premiums, while 60 models enjoy lower premiums. 

Specifically, 34 of the 172 local models and 32 of the 34 foreign models will experience premium hikes. In particular, premiums for import cars will hike 11.3 percent on average, but those of local manufactured cars will largely be down 2.9 percent from January next year. 

The Korea Insurance Development Institute on November 27 submitted its new insurance premium grading system to the Financial Supervisory Service. The new system, which will come into effect next January, grades auto premiums depending on car models in order to impose a fair share of the insurance burden. 

The institute has widened the current grading system by adding five more premium grades to the top end of the current 21 grades of insurance premiums. Under the new system, the first grade is subject to the highest payment of insurance premiums. Chrysler, Ford, Infiniti, Peugeot, Volkswagen, and Volvo are categorized as the first grade. 

All import models will see insurance premiums hikes, excluding Porsche and Land Rover.