"Car Insurance Replacement: Hybrid Vehicles Can Use the Same Model as Internal Combustion Cars"

Financial Supervisory Service Advises Consumers on Precautions for Non-Life Insurance
Detailed Understanding of Personal Liability Insurance Also Required

In the event of a car accident, when using car insurance for a replacement vehicle, hybrid vehicles can be replaced with an equivalent internal combustion engine vehicle. If the vehicle can move on its own, towing costs are not covered. The financial authorities have urged consumers to be aware of these key features of car insurance.

On the 21st, the Financial Supervisory Service analyzed recurring dispute types among this year's non-life insurance dispute cases and provided consumer precautions related to car insurance and daily life liability insurance.

Replacement for Hybrid Vehicles Also Based on 'Equivalent' Standard

First, it was advised to understand the standards for replacement vehicle fees under car insurance. Eco-friendly vehicles such as hybrid vehicles and those equipped with downsizing engines can receive replacement fees reflecting their performance. In the case of hybrid vehicles, considering the additional battery capacity, replacement fees can be calculated based on the equivalent internal combustion engine model. For example, if the owner of a K8 1.6 hybrid vehicle is involved in a traffic accident and needs a replacement, although the engine displacement is 1598cc, they can receive a replacement vehicle up to the equivalent K8 2.5 (2497cc) model.

Vehicles equipped with downsizing engines can also receive replacement fees based on the same model with a regular engine. In other words, a K5 1.6 (1598cc) owner can be replaced with a vehicle up to the K5 2.0 (1999cc) class. Additionally, if the damaged vehicle can move on its own after an accident, towing costs will not be compensated.

Meanwhile, if an accident occurs while working part-time delivery using a private vehicle, compensation is difficult with general car insurance alone. Separate special contracts such as paid transportation risk coverage must be subscribed to. This is because coverage such as 'Bodily Injury Liability II,' 'Property Damage Liability,' and 'Own Vehicle Damage' does not compensate for damages arising from repeatedly using or lending the insured vehicle for profit or receiving fees.

Compensation for Daily Life Damages Also Covered by Insurance... Car Accidents Are an Exception

Guidance was also provided on 'Daily Life Liability Insurance,' which covers liability for damages caused unintentionally to others' bodies or property in daily life. However, it was emphasized that the scope of insured persons eligible for insurance benefits must be clearly understood at the time of subscription. According to the policy, the insured includes the policyholder, spouse, relatives living together, or unmarried children (including those living separately), but unmarried children who earn their own living are not covered.

It was also advised to be cautious that car-related accidents are not covered by daily life liability insurance. For example, if a pedestrian is hit while riding an electric scooter, the pedestrian's medical expenses are not compensated. Electric scooters, electric wheels, and other motorized bicycles are classified as vehicles because they generate power not by human force. The policy stipulates that liability arising from the ownership, use, or management of such vehicles is not compensated by the insurer.