[Become an Insurance Insider] 50,000 Won Driver Insurance vs 20,000 Won Auto Special Contract... What Is Your Choice?

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[Asia Economy Reporter Oh Hyung-gil] The legal cost support rider in automobile insurance is cheaper than driver insurance, but the coverage limit is wider in driver insurance.

With the enforcement of the amendment to the Specific Crimes Aggravated Punishment Act, known as the so-called 'Minsik-i Law,' which strengthens penalties for traffic accidents in children's protection zones, more drivers are considering which of the two insurances to purchase.

On the 14th, the Financial Supervisory Service (FSS) stated, "Most drivers are unaware that automobile insurance offers various riders such as legal cost support and premium discounts," and recommended, "If you only want compensation related to legal costs, consider subscribing to the legal cost support rider in automobile insurance, which is available at a lower premium."

The Minsik-i Law focuses on imposing aggravated punishment on drivers who cause traffic accidents in school zones while driving at speeds exceeding 30 km/h or violating safe driving duties, resulting in injury or death of a child.

If the victim dies, the driver faces life imprisonment or imprisonment of three years or more; if injury occurs, imprisonment from one to fifteen years or a fine ranging from 5 million to 30 million won is imposed.

According to the FSS, the premium for the legal cost support rider is relatively lower than that of driver insurance. The annual premium for the legal cost support rider ranges from 10,000 to 40,000 won, while driver insurance ranges from 30,000 to 240,000 won.

The reason driver insurance premiums are higher is that the coverage scope is broader and the compensation limits are higher.

Driver insurance pays the driver death benefits, permanent disability benefits, injury treatment costs, and hospitalization daily allowances. In contrast, the legal cost support rider does not provide such coverage.

Regarding criminal settlement payments made when a driver causes death or injury to a victim in a car accident, driver insurance pays 30 million to 50 million won in case of death, while the legal cost support rider pays 20 million to 30 million won.

For court-imposed fines after a car accident, driver insurance supports 20 million to 30 million won, and the legal cost support rider supports 20 million won. However, many insurers plan to increase the fine support amount for school zone accidents under the legal cost support rider to 30 million won.

The coverage targets also differ. Driver insurance covers only the subscriber, whereas the legal cost support rider compensates all insured drivers operating the insured vehicle. If subscribed to the legal cost support rider, family members who take turns driving the insured passenger car and cause an accident can also receive compensation.

If a driver insured under driver insurance additionally subscribes to the legal cost support rider, the coverage limit increases, but overlapping compensation beyond the actual loss does not occur.

(Source: Financial Supervisory Service)