[Become an Insurance Insider] I Have Car Insurance, Should I Also Get Driver Insurance?

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[Asia Economy Reporter Oh Hyungil] Shin Sujin (pseudonym, 32), who recently purchased her first car, heard from her parents that it is good to get driver insurance. Although she purchased automobile insurance when buying the vehicle, she did not fully understand why she needed to get driver insurance as well. Shin said, "I don't understand why I need driver insurance when car repair costs and medical expenses are covered by automobile insurance."

With the so-called 'Minsik-i Law,' which significantly strengthens penalties for drivers involved in traffic accidents within school zones, taking effect on the 25th of last month, and other recent laws enhancing penalties for drivers in traffic accidents, interest in driver insurance is increasing.

According to the insurance industry on the 19th, major non-life insurers such as Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, DB Insurance, and Meritz Fire & Marine Insurance are successively revising and launching driver insurance products with enhanced coverage, including raising the maximum fine coverage limit from the previous 20 million KRW to 30 million KRW.

When a traffic accident occurs while driving, civil, criminal, and administrative liabilities arise. Civil liabilities such as compensation for damages can be resolved through automobile insurance. On the other hand, criminal liabilities such as detention and fines, and administrative liabilities such as license suspension or cancellation can be covered by driver insurance.

Unlike automobile insurance, which is mandatory, driver insurance is a supplementary insurance covering criminal and administrative liabilities and is not compulsory.

In other words, while automobile insurance covers civil liabilities in the event of a traffic accident, driver insurance protects the driver from administrative and criminal liabilities.

The recently enacted Minsik-i Law stipulates that if a driver causes a traffic accident in a school zone injuring a child under 13 years old, they may face imprisonment from 1 to 15 years or a fine ranging from 5 million to 30 million KRW. If the child dies, the sentence can range from a minimum of 3 years imprisonment to life imprisonment.

As penalties for drivers have been strengthened in this way, interest in driver insurance is increasing.

The main special coverage of driver insurance consists of fines, attorney fees, and traffic accident settlement support funds (settlement money).

Traffic accident settlement support funds cover criminal settlements arising from criminal liabilities in an accident, not treatment or repair costs covered by automobile insurance, and many choose a coverage limit of 100 million KRW.

Also, the fine special coverage, which covers fines imposed when bodily injury occurs due to a car accident, is structured with a limit of 20 million KRW (30 million KRW limit in child protection zones). When fines are imposed for damage to others' buildings or other property caused by a car accident, coverage is provided up to 5 million KRW.

If a driver is detained due to a car accident or prosecuted by the prosecution, or if a trial proceeds through court procedures, attorney fees are covered up to 20 million KRW.

An insurance industry official advised, "Since fines resulting from the 12 major reckless driving offenses are not covered by automobile insurance, it is recommended to prepare driver insurance," adding, "Considering the driving age range, it is best to structure the coverage period as a 20-year payment term with coverage until age 80."

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