I bought a car in Korea as a foreigner?
I bought a car in Korea as a foreigner. How does car insurance work here? What coverage do I need, and how do I get the best rates?
Note: This is an editorial persona question created from common experiences of foreign residents in Korea.
1 Answer
Car insurance in Korea has a mandatory part and an optional part. By law every car must carry liability insurance (책임보험, also called 의무보험), which covers injury and damage you cause to others, and driving without it is illegal with heavy fines. On top of that almost everyone adds comprehensive coverage (자동차종합보험), which raises the liability limits and adds your own vehicle damage (자차), theft, driver injury, and legal support. The main insurers are Samsung Fire, DB, Hyundai Marine, KB, and Meritz, and each has a cheaper direct or online arm that often quotes noticeably less than going through an agent.
As a foreigner you can be insured using your ARC and your Korean or converted license, but your premium depends heavily on your driving history; with no Korean record, first-year rates are higher and then drop as you build a claim-free history. To get the best rate, compare quotes across several direct insurers online (some have English support and there are comparison sites), consider a higher self-pay deductible on 자차 to lower the premium, add a low-mileage discount if you drive little, and register only the drivers who really need coverage, since adding young or new drivers raises the cost. If your Korean is limited, larger insurers and some brokers have English-speaking service. Keep your insurance certificate in the car.