Drivers Participating in 5-Day Vehicle Rotation to Get 2% Insurance Discount

Car insurance premiums for drivers participating in the 5-day vehicle rotation system, which reduces driving to save energy, will be discounted by 2% annually. This new special rider, set to be introduced next month, was decided through discussions between the Democratic Party, the Financial Services Commission, the General Insurance Association, and five non-life insurance companies. All insurance providers will apply the same 2% discount rate upon enrollment.

Policyholders who enroll in the rider will receive the discounted amount as a refund at the time their existing car insurance contract expires. The individual discount amount will be calculated based on the duration of participation in the 5-day system. It is possible to enroll in both this rider and the mileage discount rider concurrently. Regardless of the rider enrollment date, the insurance premium discount will be retroactively applied from the 1st of this month.

The discount is available to holders of personal car insurance policies. Vehicles used for business or commercial purposes, electric vehicles, and high-end vehicles with a market value of 50 million won or more are excluded from enrollment. Approximately 17 million vehicle owners are expected to benefit from this rider.

For low-income individuals, including recipients of basic livelihood security, individuals with severe disabilities, and couples with a combined annual income of 40 million won or less, a special discount rider for vulnerable groups will apply. In such cases, an insurance premium discount of up to 8% is possible.

Insurance companies will begin accepting applications from the week containing November 11th. Enrollees must complete an application form with their insurance provider. Insurers will verify compliance with the 5-day system through driving record apps or existing mileage rider information. The Financial Services Commission and related organizations will continue to promote the smooth processing of applications for the 5-day vehicle rotation rider and product development.