Insurance Premiums for 'Camping-Modified' Vehicles to Drop Significantly

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[Asia Economy Reporter Changhwan Lee] From next month, insurance premiums for vehicles structurally modified for camping will decrease by up to 40%.

The Financial Supervisory Service announced on the 27th that it will improve the automobile insurance premium calculation system starting from the 1st of next month, reflecting the deregulation under the Automobile Management Act for camping-use structural modifications (tuning) of vehicles.

Accordingly, if a commercial van is structurally modified into a private passenger car for camping purposes, from next month, the vehicle will be insured as a private passenger car rather than as a commercial van.

Insurance premiums for commercial vehicles are about 10% higher than those for private vehicles. Applying the private vehicle rate from next month will result in a corresponding reduction in premiums.

Additionally, if a passenger car is tuned into a passenger camping car, a new discount rate for private passenger camping cars will be applied instead of the private passenger car insurance rate.

For camping vehicles, insurance premiums are approximately 40% cheaper compared to private vehicles.

The Financial Supervisory Service plans to refund 1.1 billion KRW in overpaid automobile insurance premiums for vehicles structurally modified for camping following the amendment of the Automobile Management Act.

Even without a separate application, eligible refund recipients will be individually notified via phone calls or text messages.

A Financial Supervisory Service official explained, "In line with the trend of deregulation related to tuning, we decided to improve the relevant system so that insurance premiums for camping-tuned vehicles are reasonably calculated upon automobile insurance subscription."

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