[Insurance Tip ⑦] "You Save When You Know" Sweet Tips to Get Discounts on Car Insurance Premiums

[Asia Economy Reporter Changhwan Lee] # Kim Seon-jung (28), who secured his first job this year, recently decided to purchase a car and is also looking into car insurance. However, Kim was quite surprised to learn that the insurance premium quoted through direct online car insurance exceeded 1 million won. As a young professional, the insurance premium is relatively high. Kim is contemplating how to save on car insurance premiums.

People buying a car for the first time must also purchase car insurance. Car insurance compensates for direct damages related to car accidents and is a mandatory insurance for car owners.

Car insurance premiums vary significantly depending on driving experience and past accident history. The longer the accident-free driving record, the cheaper the premium, but for drivers in their 20s with short driving experience, premiums are set high even without accident history.

However, recently, insurance companies have been lowering car insurance premiums by offering various conditions to attract customers, and with the emergence of digital insurers, drivers can save on premiums if they spend a little time finding the right method.

The Most Important Habit to Save on Car Insurance Premiums is 'Safe Driving'

Experts point to 'safe driving' as the most priority and important way to save on car insurance premiums. If a car accident occurs due to the driver's fault, even if the insurance is claimed, the premium can increase significantly from the following year.

Depending on the accident scale, injury severity, and number of accidents, car insurance premiums can increase by up to 100% the next year, so maintaining safe driving habits is essential.

Stock photo of a car accident

The next important step is to utilize the direct channels operated by each insurance company. Direct car insurance is a product that consumers subscribe to online directly, so it saves on labor costs, store operation expenses, and other business costs, making the premium cheaper than purchasing through an agent. Generally, it can save up to about 20% compared to offline channels.

Utilize Various Special Discounts such as Mileage Discount and Black Box Discount

It is also important to make full use of discount riders provided by each insurer. A representative rider is the mileage discount. This product offers a discount on premiums based on the driving distance over one year, with discounts up to 35%.

If the vehicle is equipped with a black box, a black box discount rider can be applied. There are also public transportation usage discount riders that provide additional discounts based on public transportation expenses over the past three months, and child discount riders that offer extra discounts if there are young children.

Driver scope limitation conditions should also be reviewed. Premiums vary depending on how the range of actual drivers is limited. Narrowing the driver scope to a single person or a couple, or limiting the age to 30 or older, can reduce premiums by more than 10%.

For people like Kim, who are purchasing car insurance for the first time, it is also beneficial to use the driving experience recognition system. Insurance companies charge higher premiums if the car insurance subscription history is short, but if the person has served as a military driver, a government office driver, has foreign car insurance history, or family car insurance history, premiums can be significantly reduced.

Additionally, some insurers offer special car insurance products for low-income earners or basic livelihood security recipients, so if applicable, it is worth looking into these options.