Special Insurance Rider for Five-Day Vehicle Rotation to Be Launched...14,000 Won Refund on 700,000 Won Annual Premium

Annual Premium Savings of 2 Percent Expected...
Estimated to Benefit 17 Million Vehicles

To encourage public participation in energy conservation in response to high oil prices originating from the Middle East, a new insurance rider offering discounted premiums for vehicles participating in the five-day vehicle rotation system will be launched next month. Policyholders who enroll in this rider are expected to receive an annual discount of 2% on their insurance premiums.

Due to the prolonged Middle East war, the public institution vehicle restriction system was strengthened from a 5-day odd-even system to a '2-day system.' On April 8, 2026, employees were providing drivers with information about the implementation of the 2-day system in front of the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jinhyung

On April 27, the government and ruling party held a meeting of the 'Special Committee on Economic Response to the Middle East War' and discussed the 'Auto Insurance Premium Discount Plan for Vehicle 2·5-Day Rotation System' as the main agenda. The meeting was attended by committee members, the Financial Services Commission, the General Insurance Association of Korea, and representatives from five major non-life insurance companies.

The eligibility for enrollment in this rider is limited to individual auto insurance policyholders. Commercial and business-use vehicles, public sector vehicles not subject to the 2·5-day rotation system, electric vehicles, and high-value vehicles valued at over 50 million won are excluded. Approximately 17 million vehicles are expected to benefit from this program.

Policyholders who enroll in the rider will receive an identical 2% annual premium discount regardless of the insurance company. The discounted amount will be refunded when the existing insurance contract expires. For example, if a policyholder pays 700,000 won in auto insurance premiums in April this year and maintains the rider for one year, they will receive a refund of about 14,000 won in April of the following year. Even if the rider is purchased in May, it will be retroactively applied from April 1.

Insurance benefits will still be paid in full even if an accident occurs on a day when the vehicle is operated during the designated five-day rotation schedule.

Insurance companies plan to verify compliance with the five-day rotation system by utilizing driving record applications or existing mileage-based rider information.

In addition, for commercial vehicles that are not eligible for the five-day rotation rider, the coverage of the preferential discount rider for low-income individuals will be expanded. Previously, only individual and business-use auto insurance policyholders were eligible, but now the rider will be extended to include cargo trucks of 1 ton or less covered by commercial auto insurance. The relevant product will be released in May.

Meanwhile, insurance companies plan to begin accepting applications for enrollment in the five-day rotation rider from auto insurance policyholders around May 11. Those wishing to participate must complete an application form, and once the product is officially launched, a separate enrollment process will be required.

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