Government, ruling party to announce cut in car insurance premiums next week

The Government of South Korea and the Democratic Party of Korea decided on the 13th to push for a reduction in automobile insurance premiums in line with restrictions on vehicle use. They plan to unveil detailed measures next week.
At a meeting of the Special Committee on Economic Responses to the Middle East War on the 13th, the government and ruling party concluded that there is room to lower auto insurance rates. The decision is tied to new driving restrictions, including an odd-even and weekday-based system, introduced in response to a surge in oil prices caused by the 2026 Iran War.
Ahn Do-geol, a lawmaker serving as secretary of the special committee, said, "With the current 5–2 driving restriction scheme in place, the distance driven has decreased, which creates a basis for lowering insurance premiums." He added, "The Financial Services Commission and insurance regulators are discussing specific reduction plans, and we intend to announce them by next week at the latest."
According to the government and ruling party, the odd-even license plate system for passenger cars alone has produced an energy-saving effect of 6,900 barrels per month. With the additional 2-day restriction layered on top, they expect total monthly reductions of about 17,000 to 87,000 barrels, and plan to ease the burden of car insurance premiums accordingly.
On the oil supply situation, Ahn said, "Thanks to voluntary efforts by private oil refining companies to secure alternative supplies, crude oil procurement for April and May is being maintained at about 60% of the usual level compared with previous years."
Regarding the supply of petrochemical products, the government and ruling party assessed that there have been no major disruptions so far. However, they have activated daily monitoring for bottlenecks emerging in certain items, including syringes, IV sets, instant noodles, medical supplies, and volume-based garbage bags.
uknow@fnnews.com Kim Yun-ho and Song Ji-won Reporter