With Benz and Porsche Selling Well... Luxury Car Insurance Subscribers Increase Significantly

[Asia Economy Reporter Changhwan Lee] As sales of high-priced imported cars such as Porsche, Mercedes-Benz, and BMW surge in the domestic automobile market, the number of insurance policies for collision coverage (own vehicle damage coverage) on ultra-luxury vehicles priced over 100 million KRW has also significantly increased.

According to the Korea Insurance Development Institute on the 14th, the number of domestic collision coverage insurance policies for high-priced cars valued at 50 million KRW or more reached 554,101 last year, a 74.6% increase compared to 317,417 units in 2017, four years ago. On average, the number grew by about 14.9% annually.

The growth rate of collision coverage insurance policies for ultra-luxury vehicles priced at 100 million KRW was even steeper. It rose from 32,829 units in 2017 to 59,089 units last year, an increase of approximately 80%. The annual average growth rate was 15.8%.

This is interpreted as being influenced by the significant increase in sales of high-priced imported cars in the domestic automobile market. According to the Korea Automobile Importers & Distributors Association (KAIDA), the total number of newly registered imported cars last year was 276,146, the highest ever recorded.

Notably, sales of imported cars priced over 100 million KRW increased sharply. Last year, the number of imported cars registered at over 100 million KRW was 65,148, a 50.9% surge compared to 43,158 units the previous year.

The proportion of vehicles priced over 100 million KRW among all imported cars also rose significantly to 23.5%, up from 15.7% the previous year. By brand, Mercedes-Benz ranked first with 28,815 units sold priced over 100 million KRW.

This represents a 69.5% increase compared to 17,021 units in 2020. Sales of other luxury imported car brands such as BMW and Porsche also saw substantial growth.

With the increase in sales of high-priced cars, about one in two automobile insurance subscribers (47.6%) last year subscribed to liability coverage that guarantees over 500 million KRW per accident.

The Korea Insurance Development Institute stated, "As the number of high-priced vehicles increases, the risk of accidents exceeding the insured amount also rises. Therefore, it is necessary to set an adequate insurance coverage amount to prepare for unexpected accidents."

This content was produced with the assistance of AI translation services.