Insuring a Vehicle in Korea

Information on the different types of vehicle insurance available in Korea, plus details on what to do in the event of an accident, and how to make an insurance claim...

All vehicles in Korea are required to have vehicle insurance. Proof of insurance must be carried at all times.

Car Insurance

The following types of car insurance (Ja dong cha bo hum) are found in Korea:

  • Third party liability insurance (Chek im bo hum): the minimum legal requirement for drivers
  • Comprehensive insurance (Jong hap bo hum): optional insurance which covers a wider range of accident and financial cover
  • Driver insurance (Un jun ja bo hum): optional insurance which is for driver compensation and covers injury, fines, and consent in the event of an accident

Insurance companies in Korea accept drivers' insurance records from other countries. Insurance premiums are lower when drivers can prove that they have a "no accident" record. To get these benefits, drivers have to submit their vehicle insurance certificate from their previous insurance company in English when they apply for a new insurance policy in Korea.

Car Insurance in a Foreign Currency

This type of insurance is only available for foreigners living in Korea and specifically for companies with links to non-Korean authorities where drivers are foreigners. All insurance documents are written in English and insurance payments are given in US dollars.

In the Event of a Vehicle Accident

After reporting an accident to the police and insurance company, an insurance claim form should be completed to start compensation procedures. The accident is then investigated by the insurance companies, and both parties have to agree on the outcome. Finally, an insurance payment or settlement fee is awarded.

The following documents are needed to make an insurance claim:

  • Claim form (an English version is available from the insurance company)
  • Insurance certificate
  • Alien registration card
  • Police report
  • Car registration documents
  • Driving licence