[Becoming an Insurance Insider] Speeding in School Zones Can Lead to a Car Insurance Premium Bombshell

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[Asia Economy Reporter Oh Hyung-gil] Starting next year, if traffic regulations are violated in children's protection zones or crosswalks, automobile insurance premiums will increase by up to 10%.

Until now, surcharge rates of up to 20% have been applied for unlicensed driving, drunk driving, and hit-and-run accidents, and up to 10% for signal violations, speeding, and crossing the center line, but there were no surcharge regulations for violations in children's protection zones and crosswalks.

According to the insurance industry on the 1st, related government departments such as the Ministry of Land, Infrastructure and Transport and the Financial Supervisory Service plan to apply automobile insurance premium surcharges to drivers who violate traffic regulations (Road Traffic Act) in children's protection zones and crosswalks.

According to automobile accident statistics, 22% of pedestrian fatalities over the past three years occurred at crosswalks, and 66% of child fatalities and 56% of elderly fatalities occurred in children's and elderly protection zones.

Under the revised premiums, speeding over 20 km/h in children's protection zones will incur a 5% surcharge for the first violation and a 10% surcharge for two or more violations. Speeding violations in elderly protection zones and disabled protection zones will be surcharged at the same rates. This regulation will be applied starting from automobile insurance policies beginning in September.

If a driver fails to stop when a pedestrian is crossing at a crosswalk and violates pedestrian protection obligations two to three times, a 5% surcharge will be applied, and a 10% surcharge for four or more violations. This will be applied starting January next year.

A driver currently paying an insurance premium of 820,000 KRW who commits one speeding violation in a children's protection zone and two violations in a pedestrian protection zone will see their premium rise to 900,000 KRW.

The purpose of the insurance premium surcharges is to reduce pedestrian traffic accidents in children's protection zones and crosswalks. Drivers must drive at 30 km/h or less in children's protection zones and must come to a complete stop when pedestrians are crossing at crosswalks.