[Asia Economy Reporter Changhwan Lee] Auto insurance is a mandatory insurance that every driver must have. However, the premiums are not all the same; they vary depending on how the coverage and driver scope are defined.
By carefully considering various special contracts based on the driver's age, driving experience, and driving habits, you can secure solid coverage while saving on premiums.
On the 16th, we looked into tips for saving on auto insurance premiums with Samsung Fire & Marine Insurance.
Samsung Fire & Marine Insurance emphasized that the first step to saving on premiums is to set the driver's age and scope. Among the people who drive the vehicle, check the age of the youngest driver and enroll in the 'Driver Age Restriction Special Contract' accordingly. Generally, the higher the set age, the cheaper the premium.
Choosing the driver scope as 'only the insured person' or 'spouses' rather than 'anyone' or 'the entire family' can also save on premiums by selecting only the necessary drivers.
Driving Experience as a Military Driver or Driving Position Also Recognized
If a vehicle is driven by a couple but occasionally by their children, it is a good idea to set the basic driver scope to the couple only and use the 'Temporary Driver Special Contract' only during the periods when the children drive. If you have children under the age of 5, you can enroll in the child discount special contract to receive a 2-12% premium discount.
If you have experience as a military driver, corporate or government office driving positions, or overseas auto insurance enrollment, these periods can be recognized as driving experience to receive premium discounts.
You should also check the 'No-Accident Driver Discount System,' which offers a 5-11% discount on premiums for three consecutive years of no accidents, including experience with other companies. Samsung Fire & Marine Insurance was the first in the industry to introduce this system, which is now operated by most insurers.
The more safety devices installed in the vehicle, the more premium discounts you can get. Drivers who have installed a black box can receive a 2-5% premium discount through the 'Black Box Special Contract,' depending on the company. When enrolling, you only need to provide the black box manufacturer and model name, and it must be installed in a fixed position to operate continuously.
Also, from this month, it is possible to get auto insurance premium discounts through the 'Mileage Special Contract,' which is automatically enrolled. Generally, if you drive less than 15,000 km annually, you can save about 2-45% on premiums depending on the mileage.
Direct Auto Insurance Essential to Save Premiums
Using direct auto insurance, which many people use, is also a good method.
Direct auto insurance allows anyone to get discounts simply by enrolling online or via mobile, but it is not easy to check how much discount each insurer offers. In this case, you can check the internet discount rates by insurer.
On direct insurers’ websites or advertisements, the internet discount rate is always preceded by the phrase 'compared to the company's offline rate.' This means that it is cheaper compared to enrolling through the insurer’s offline channels.
Internet discount rates vary by insurer but are around 12-20%, and since these rates are averages, there may be some differences depending on the individual.
A Samsung Fire & Marine Insurance official said, "Many people vaguely know about discount special contracts, but often miss enrolling in the ones they can get discounts on when signing up. Using discount special contracts that fit your situation allows you to enroll in auto insurance at a slightly cheaper rate."
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