Improvement of Car Insurance Rental Fee Payment Standards... Reflecting Eco-Friendly Cars and SUVs

Source: Financial Supervisory Service

[Asia Economy Reporter Changhwan Lee] The Financial Supervisory Service (FSS) announced on the 29th that it will improve the current automobile insurance rental fee payment standards, which mainly consider engine displacement and focus on internal combustion engine sedan vehicles, in line with the spread of eco-friendly vehicles and the preference for SUVs (Sports Utility Vehicles).

The FSS explained that the current automobile insurance rental fee payment standards were designed mainly for traditional internal combustion engine sedan vehicles, and there have been continuous complaints that the rental fee payment standards for new types of vehicles are unreasonable.

In particular, low rental fees set for high-priced vehicles such as electric vehicles and SUVs have led to ongoing dissatisfaction.

Accordingly, the FSS improved the system so that for electric vehicles with battery output of '390kw or higher,' the rental fee is calculated based on the ultra-large internal combustion engine standard (around 3500cc displacement).

Additionally, considering the added battery capacity of hybrid vehicles, the rental fee will now be calculated based on the internal combustion engine standard of the same model.

Recently, due to eco-friendly policies such as emission regulations, the number of vehicles equipped with downsizing engines has increased. These vehicles have higher engine output and the same vehicle size compared to general engine vehicles, but rental fees have been calculated solely based on engine displacement, causing disputes.

A downsizing engine refers to a high-efficiency engine that reduces displacement while maintaining output to meet emission regulations and other standards.

Going forward, downsizing engine vehicles will have their rental fees calculated based on general engine vehicles of the same model, considering similar performance (engine output, vehicle size, etc.).

Furthermore, SUVs will be able to receive rental fees up to the minimum rental rate based on the same class of SUV, rather than the same class of sedan.

The FSS plans to reflect the improved calculation standards in the practical compensation guidelines related to rental fees of 12 automobile insurance companies.

An FSS official stated, "We expect that the establishment of reasonable rental fee payment standards for eco-friendly and SUV vehicles will greatly improve the rights and interests of consumers who own these vehicles."

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