Light Traffic Accident Insurance Claims Lead to Premium Surcharges... "It's a Dilemma"

[Asia Economy Reporter Oh Hyung-gil] Many drivers often struggle with whether to handle minor car accidents through their auto insurance or not.

They worry that using insurance might increase their renewal premiums, but if they pay out of pocket, they wonder why they even bought insurance in the first place.

According to the insurance industry on the 18th, auto insurance premiums can increase if there is even one minor accident claim within three years based on the accident frequency rating. Also, if the driver has been receiving a no-accident discount for three years, they may lose that discount at the next renewal, causing premiums to rise.

Whether handling the claim through insurance is advantageous or disadvantageous depends on the driver's situation, so decisions should not be made solely based on the accident handling cost.

If you have already processed the insurance claim and received compensation but later realize that handling it through insurance was more costly, is there a solution? In such cases, you can use the premium refund system. The premium refund system allows you to return the insurance payout for a completed claim to the insurance company before renewal, excluding that accident from the premium surcharge evaluation.

Samsung Fire & Marine Insurance operates a service called "To Claim or Not to Claim" through its direct channel, which, by simply entering basic accident information, immediately informs you whether handling the claim through insurance is beneficial or not based on the renewal premium and accident handling costs over the next three years as of the current date.

This service currently requires insurance contract information, so it is only available to Samsung Fire & Marine Insurance direct auto insurance subscribers, while general Samsung Fire & Marine Insurance auto insurance customers can check through their agents.

A representative from Samsung Fire & Marine Insurance Direct Auto Insurance said, "Many people tend to choose auto insurance mainly by looking at the premium when subscribing," adding, "I hope people also consider what benefits and services the insurer can provide at the moment when help is most needed?the moment of an accident."