Starting on the 11th of this month, applications open for a special rider that gives a 2% annual discount on auto insurance premiums for those who join the vehicle odd-even weekday rotation. The discount amount is calculated based on the participation period, and it can be refunded when the auto insurance contract ends. You can also enroll in it together with the existing mileage discount rider.
Commercial and business-use vehicles cannot enroll in the rider. Also, even vehicles enrolled in the rider will have the discount limited if it is confirmed they were driven on their assigned no-drive day. Insurers plan to verify compliance with the odd-even rotation using their own applications (apps) and other tools. Key details on the vehicle odd-even rotation insurance discount rider are organized in a Q&A.
― What is the vehicle odd-even rotation insurance discount?
"It is a system in which individual auto insurance policyholders who participate in the vehicle odd-even rotation receive a 2% annual discount on auto insurance premiums. The discount rate is the same across all insurers. The discount amount is calculated based on the participation period, and those who enroll in the rider receive a refund at the expiration of their existing auto insurance contract. For example, if you paid 700,000 won in April this year and maintain the rider for one year, you will receive 14,000 won back in April next year."
― On which weekday must vehicles not be driven?
"It is determined by the last digit of the license plate number. If the last digit is 1 or 6, Monday; 2 or 7, Tuesday; 3 or 8, Wednesday; 4 or 9, Thursday; 5 or 0, Friday—those are the days you must not drive the vehicle."
― Who can enroll?
"Individual auto insurance policyholders are eligible. About 17 million vehicles are expected to benefit."
― Are there vehicles that cannot enroll?
"Business-use and commercial vehicles are excluded, and public sector vehicles and electric vehicles are also not included. High-priced vehicles valued at 50 million won or more are also not included."
― Do commercial vehicles receive no benefits at all?
"Commercial vehicles can enroll in the 'preferential discount rider for low-income people' instead of the odd-even rotation rider. Previously, only individual or business-use auto insurance policyholders could enroll in the rider, but going forward the scope will expand to include cargo trucks of 1 ton or less that are insured under commercial auto insurance."
― Who can enroll in the preferential discount rider for low-income people?
"Recipients of basic livelihood benefits, people with severe disabilities, and drivers in couples with a combined annual income of 40 million won or less are eligible. The discount rate ranges from 1% to 8% depending on the insurer and the enrollment channel."
― How do I apply for the vehicle odd-even rotation rider?
"Each insurer plans to accept applications from auto insurance policyholders by phone, email, website, and information messages between the 11th and the 15th. At that time, you must submit an application expressing your intent to join the vehicle odd-even rotation. Even if you submit the application, you must go through a separate enrollment process again after the insurer officially launches the product. The product is expected to launch on or after the 18th."
― When does the auto insurance premium discount take effect?
"Even if you enroll in the rider in May, the discount will be applied retroactively from Apr. 1. However, if an accident occurred between Apr. 1 and before you applied to participate in the rotation, the discount will apply only to the period after you enroll in the rider."
― Can I enroll together with the mileage rider?
"Yes. To deliver a real reduction in premiums, the government has decided to allow dual enrollment in the existing mileage rider (a product that discounts or refunds part of the premium for people who drive fewer miles annually) and the vehicle odd-even rotation rider."
― If I drive on my no-drive day and have an accident, how will the insurance be handled?
"Even if an accident occurs, the insurance payout will be made as normal. However, because you drove on your no-drive day, the vehicle odd-even rotation rider discount will not apply, and there is a possibility of a premium surcharge the following year."
― If I fail to comply even once, will I lose the discount?
"The discount terms remain in effect up to one violation. However, if there are two violations, the discount benefit is provided only from the rider's effective date up to the time of the first violation."
― How will insurers verify whether the vehicle was driven?
"Insurers plan to use driving-record apps, existing mileage rider data, connected-car data, and other sources to verify compliance with the vehicle odd-even rotation."