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Day-off Drivers to Get Discounts on Car Insurance

Drivers participating in the campaign to park their cars one working day a week will benefit from discounts on their car insurance premiums from December.

The Financial Services Commission and the Financial Supervisory Service on Wednesday said they are finalizing the discount program and will conduct a test run in the fourth quarter. They expect to fully implement it from December.

"Basically we agreed to apply reduced rates to owners of cars that have on-board diagnostic (OBD) system," an insurance industry official said. "The range of the discount is currently being discussed at between 5 to 10 percent." 

Driving information is recorded in the OBD system, making it possible to check whether a driver is actually taking part in the campaign. "The OBD system is only installed on cars made after 2000, so we are reviewing other options for cars released before that, such as installing black boxes," an official at the FSS said.

The financial agencies plan to introduce a program that allows graded insurance premiums based on driving distance from 2012, but they might implement the program a year early after observing the success or failure of the discounts for four-day drivers.

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