SEOUL, June 7 (Korea Bizwire) — More electric vehicle (EV) owners in Souht Korea are signing up for car insurance policies with the expansion of the EV market, the nation’s top financial regulator said Monday.
EVs covered by car insurance policies last year rose in number to 183,829 vehicles, up 60.5 percent from the previous year and compared with three years ago, the number has quadrupled, according to the Financial Supervisory Service (FSS).
The percentage of EVs among all car insurance policies grew from 0.2 percent in 2018 to 0.8 percent last year.
The average cost of insurance for EVs last year stood at 943,000 won, which was more expensive than insurance for non-EVs (762,000 won).
“EVs are more expensive, which has led to a higher cost of comprehensive collision coverage,” the FSS said.
In the meantime, 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 percent, which was 2.3 times higher than non-EV drivers (10.3 percent).
This is largely attributed to the fact that EVs cost less to drive long distances than non-electric vehicles.
An EV’s average cost of maintenance, as covered by comprehensive collision plans, was 2.45 million won, which was 30.2 percent more expensive than non-EVs.
“The exorbitant cost of repair is largely attributed to some of the expensive parts that are exclusive to EVs, such as high-voltage batteries, electronic control devices, and sensors,” the regulator said.
Ashley Song (firstname.lastname@example.org)