Drivers Who Join the Five-Day Vehicle Rotation System Will Get a 2% Annual Car Insurance Discount

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\r\n[Financial News] A new "Special Insurance Rider for Five-Day Vehicle Rotation" will be introduced, offering a 2% annual premium discount to personal auto insurance holders who participate in the five-day vehicle rotation system. 
\r\nOn the 27th, the Financial Services Commission held the fourth meeting of the Special Committee on Economic Responses to the Middle East War and said it discussed the "Car insurance premium discount plan for the two- and five-day vehicle rotation system" with non-life insurance companies.
The plan was designed to respond to rising volatility in international oil prices and to encourage the public to save energy.
\r\nThe Special Insurance Rider for Five-Day Vehicle Rotation is available only to holders of personal auto insurance. It does not apply to business or commercial vehicles. EVs, which are excluded from the public-sector two- and five-day vehicle rotation system, are also not eligible. High-priced vehicles worth 50 million won or more are excluded as well, for fairness in support.
\r\nPolicyholders who enroll in the rider will receive a premium discount of about 2% per year, and the discounted amount will be refunded when the insurance contract matures. The discount rate will be applied equally across all insurers. It can also be combined with the existing Mileage-based premium discount rider. 
\r\nThe discount is granted when drivers do not use their vehicles on the designated day based on the last digit of the license plate. On the other hand, if a violation is confirmed on a day assigned under the five-day vehicle rotation system, the discount will not apply, and in some cases a premium surcharge may be reflected in the following year.
\r\nA verification process using driving records will also be introduced as a supplementary measure. Individual insurers plan to check compliance with the five-day vehicle rotation system using the Driving Log App or existing mileage-based rider data.
\r\nStarting with the week that includes the 11th of next month, insurers will begin accepting applications for the rider from auto insurance customers. Applicants must submit a form to their insurer stating that they will participate in the five-day vehicle rotation system.
Even if a customer submits an application of intent, a separate enrollment process will be required after the Special Insurance Rider for Five-Day Vehicle Rotation is officially launched, following product development and IT system setup by each insurer. Insurers will provide guidance on the enrollment process to auto insurance customers.
For customers who enroll in May, the premium discount will be applied retroactively from April 1.
\r\nHowever, if an accident had already occurred between April 1 and the time of the application to join the system, the discount will apply only to the period after enrollment.
Meanwhile, to support commercial vehicle operators who are not covered by the rider, commercial vehicles will also be included among those eligible for the Low-Income Driver Discount Rider.
Previously, only holders of personal or business auto insurance could enroll in the Low-Income Driver Discount Rider. Going forward, the support will be expanded to include trucks of up to one ton insured under commercial auto insurance.
The Financial Services Commission said, "Insurers plan to complete product development and launch the rider individually next month," adding, "Through this, we expect more small-scale truck owners to enjoy a meaningful reduction in insurance costs."
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gogosing@fnnews.com Park So-hyun Reporter