Utilizing Driver Insurance Enrollment and Rental Car Riders... Financial Supervisory Service's Car Insurance 'Tips'

Information on Utilizing Car Insurance for Seol Holiday Preparation

[Asia Economy Reporter Minwoo Lee] The Financial Supervisory Service (FSS) has presented ways to actively utilize automobile insurance in preparation for the Lunar New Year holiday. They advised subscribing to various special contracts in anticipation of alternate driving or rental car use and timely use of emergency dispatch services.

The FSS announced the "Key Information on Automobile Insurance Useful to Know for the Lunar New Year Holiday" on the 18th, containing these details.

First, they recommended subscribing to the short-term driver expansion special contract to prepare for alternate driving. Even if the driver scope is limited to oneself or a spouse, subscribing to the "short-term driver expansion special contract" allows compensation for accidents caused by other people, such as relatives, temporarily driving the vehicle. However, since the detailed operation of the special contract, such as the scope of 'short-term (temporary) drivers' and 'other vehicles,' may vary depending on the insurer, it is necessary to check the details in advance.

The same applies when using rental cars, where it is necessary to utilize insurer special contracts. The representative one is the 'rental car damage coverage special contract,' which can reduce insurance premiums. Rental car companies offer a 'vehicle damage waiver' service, but it has the disadvantage of being expensive. By subscribing to the rental car damage coverage special contract, one can receive compensation for rental car repair costs at a relatively low premium. For example, if you rent a 'Sonata' vehicle for one day and select a vehicle damage waiver fee of 50,000 KRW, the service fee is about 22,000 KRW, whereas the rental car damage coverage special contract premium is about 7,600 KRW.

An FSS official explained, "Since the special contract names, subscription conditions, and coverage scope differ depending on the insurer, and some insurance companies may not allow subscription to special contracts during the insurance period, it is necessary to confirm subscription conditions and coverage through consultation before subscribing to the special contract."

Emergency dispatch services were also recommended. During long hours of driving over the Lunar New Year holiday, in case of unexpected situations such as battery discharge, tire puncture, or fuel shortage, you can contact the insurer’s call center to use the 'emergency dispatch service.' However, you must check whether you have subscribed to the 'emergency dispatch service special contract' before departure. If a vehicle problem occurs while driving on the highway, you can also use the Korea Expressway Corporation’s free towing service.

For minor scratches and dents (Type 3), instead of restoring damaged parts, replacement repairs with new certified quality parts are possible. To this end, the FSS improved automobile insurance repair standards and began applying them this year. The target parts are eight exterior parts that do not affect vehicle safety: bumper, hood, front fender, doors (front, rear, rear side), rear fender, and trunk lid.

Additionally, in case of a vehicle accident during long-distance driving, they urged following the 'Traffic Accident Handling Procedures' for smooth accident processing and compensation. First, report to the police, explain the situation, and receive guidance on measures, while promptly reporting the accident to the insurer’s call center. Preserving the accident scene is also important. Use spray paint or similar to mark the position of the car wheels and take close-up photos of damaged parts, as well as use video recording to reveal the overall accident circumstances. If there are witnesses, it is also good to secure their names, addresses, and phone numbers.