Auto insurance data shows rise in EV policies

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This photo taken on July 3, 2017 shows the electric vehicle charging station of electricity supplier KEPCO in Seoul. (Yonhap)

SEOUL, June 7 (Korea Bizwire)More electric vehicle (EV) owners in South Korea are buying auto insurance policies as the EV market expands, the country’s top financial regulator said Monday.

Last year, the number of electric vehicles covered by car insurance policies increased to 183,829 vehicles, up 60.5% from the previous year and from three years ago, the number has quadrupled, according to the Financial Supervisory Service (FSS).

The percentage of electric vehicles among all car insurance policies fell from 0.2% in 2018 to 0.8% last year.

The average cost of insurance for electric vehicles last year was 943,000 won, which was more expensive than insurance for non-electric vehicles (762,000 won).

“Electric vehicles are more expensive, which has resulted in a higher cost of comprehensive collision coverage,” the FSS said.

Meanwhile, the percentage of EV drivers with a mileage of more than 15,000 kilometers subscribed to the special mileage contract in 2020 stood at 24.2%, which is 2.3 times higher than non-EV drivers (10, 3%).

This is largely attributed to the fact that electric vehicles cost less to travel long distances than non-electric vehicles.

The average cost of maintaining an electric vehicle, covered by comprehensive crash plans, was 2.45 million won, 30.2 percent higher than non-electric vehicles.

“The exorbitant cost of repair is largely attributed to some of the expensive parts exclusive to electric vehicles, such as high-voltage batteries, electronic control devices and sensors,” the regulator said.

Ashley Song (ashley@koreabizwire.com)


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