How Much Do You Pay for Car Insurance? Average Last Year Was 680,000 Won

South Korean drivers are seeing a slight decrease in their auto insurance costs, with the average premium for personal car insurance falling to 680,000 won last year. This marks a 2.3% drop from the previous year, a welcome trend driven by the growing popularity of non-face-to-face policy purchases and the effective utilization of discount schemes, most notably the mileage-based rebate.

The mileage-based special contract, which refunds a portion of the premium based on how little a car is driven, saw a high participation rate of 88.4%. A significant majority of these participants, 66%, qualified for refunds, receiving an average of 133,000 won back. This indicates a growing awareness and adoption of cost-saving measures among Korean motorists.

Concurrently, there's a noticeable trend towards increased coverage limits, particularly for property damage and own-vehicle damage. This is largely driven by the rising average value of vehicles, including a surge in electric cars, which often come with higher repair or replacement costs. The data shows that over half of policyholders now opt for property damage liability coverage of 1 billion won or more, signaling a proactive approach to mitigating financial risks associated with accidents involving expensive vehicles. The adoption of advanced safety features also continues to rise, further influencing policy choices.