"Trusted full coverage, but a bolt from the blue: 1.68 million won"... The betrayal of Jeju Island rental cars [The Standard of Consumption]

"I have full insurance, so why do I have to pay for repairs separately?" Mr. A, an office worker in his 20s, was involved in a minor collision with a parked vehicle in a hotel parking lot while using a rental car during a trip to Jeju Island. Mr.
A thought it was fortunate that he had purchased "full insurance (total loss/deductible coverage)," even if it meant paying a little extra. 68 million won, including a 500,000 won property damage deductible and vehicle repair costs. Mr.A demanded a full refund from the rental car company, stating, "It is difficult to accept paying such a large cost despite having full insurance," but his request was denied. Ultimately, Mr. A filed for dispute mediation with the Korea Consumer Agency.■ "Flat charge of deductible is invalid". Issues Regarding Fairness of Terms and Conditions According to the Korea Consumer Agency on the 26th, as the use of rental cars has recently increased, disputes surrounding insurance coverage and the scope of protection are also on the rise. In particular, there are quite a few cases where customers end up bearing unexpected costs after signing up based solely on the term "full coverage." The key issues in this case were largely twofold: one was whether the imposition of the property damage deductible was appropriate, and the other was the scope of repair cost burden. First, the Dispute Mediation Committee determined that the rental car company's terms and conditions regarding the property damage deductible were problematic.According to the "Standard Terms and Conditions for Automobile Rental," customers may pay a deductible in the event of an accident, but this must be calculated reasonably within the scope of actual damages incurred. However, the company in question was uniformly imposing a fee of 500,000 won regardless of the severity of the accident.
The Committee deemed the relevant terms and conditions to be invalid under the "Act on the Regulation of Terms and Conditions. " ■ "Single-vehicle accidents excluded from insurance".
Partial Recognition of Repair Costs On the other hand, regarding repair costs, Mr. A argued that compensation was possible regardless of the type of accident because he was enrolled in "full coverage" insurance; however, the contract explicitly stated that single-vehicle accidents, such as contact with a parked vehicle, were excluded from insurance coverage.Consequently, the committee determined that the demand for a full refund of repair costs was difficult to accept. However, reflecting the fact that it was unclear whether the actual scope of repairs was excessive compared to the scale of the accident and that fairness in the dispute needed to be considered, the committee decided that it was reasonable to refund 850,000 won—combining the 500,000 won property damage deductible and 350,000 won in partial repair costs—from the amount received by the rental car company.■ "Must Check Insurance Conditions". Keep Contracts and Proofs The Korea Consumer Agency emphasized that consumers must carefully check insurance conditions when using a rental car.An official from the agency explained, "It is particularly important to check in advance the scope of the burden the consumer must bear in the event of an accident, such as deductibles, compensation limits, and items excluded from coverage. " In addition, he added, "When taking possession of the vehicle, you should record the exterior condition with photos or videos, and in the event of an accident, you should immediately notify the company and photograph the damaged parts to secure evidence," and "If you are charged for repairs, it is necessary to check the contract and repair statement before making the payment."
localplace@fnnews.com Kim Hyun-ji Reporter