Kakao Mobility Launches 'Pay-As-You-Drive Driver Insurance' with Kakao Navi

[Asia Economy Reporter Seungjin Lee] Kakao Mobility is launching a new type of online driver insurance called ‘Pay-as-You-Drive Driver Insurance with Kakao Navi’ on the 8th, which charges insurance premiums based on the distance driven using Kakao Navi and provides essential coverage in case of traffic accidents.

‘Pay-as-You-Drive Driver Insurance with Kakao Navi’ automatically calculates the driving distance using Kakao Navi technology, activates the insurance switch in the application (app), and charges premiums according to the distance driven. It is the first insurance product to calculate usage-based premiums using only ‘mobile navigation’ without additional equipment, and users can deactivate the insurance anytime when not in use.

The company explained that the subscription and cancellation process is simple, allowing users who do not drive frequently or have short driving distances to access driver insurance without burden. It is not a long-term insurance but has a maximum insurance period of one year, reducing the burden of maintaining insurance.

It also features the ability to check estimated premiums through Kakao Navi’s route analysis technology and receive guidance on sections where driver insurance is essential. Based on Kakao Navi user driving data, it provides estimated annual premium information and allows users to check the premiums used so far in real time within the app. Additionally, if the route to the destination includes sections such as child protection zones or accident-prone areas where driver insurance is necessary, the app provides information to easily apply insurance for those sections.

The coverage is composed only of essential protections needed in case of an accident. Existing driver insurance products on the market often include coverage such as daily life liability, fracture diagnosis fees, and cast treatment fees, which can be covered by existing indemnity insurance, making them somewhat unreasonable. ‘Pay-as-You-Drive Driver Insurance with Kakao Navi’ limits coverage to core protections such as ▲traffic accident handling support fund ▲lawyer appointment fees ▲fines, lowering the premium to a reasonable level of 3 KRW per kilometer.

Meanwhile, the company explained that ‘Pay-as-You-Drive Driver Insurance with Kakao Navi’ is an example of insurance brokerage and sales through a simple non-life insurance agency, aligning with the purpose of simple non-life insurance to help cover everyday risks through small-amount simple insurance products. The simple non-life insurance agency system allows agents closely related to the product/service to sell small-amount simple non-life insurance products, and Kakao Mobility obtained the qualification of a ‘simple non-life insurance agency’ to introduce insurance specialized for navigation users.

Ahn Jeong-hwan, head of Kakao Mobility’s Financial Services Team, said, “We launched this new type of insurance product to help all drivers reduce insurance burdens and focus on safe mobility,” adding, “We will continue to explore ways to enhance user safety and convenience in various mobility contexts.”

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