Posted October. 21, 2009 08:52,
Motorists as early as January can get a discount in auto insurance for keeping their cars home one weekday per week.
A Financial Supervisory Service official said yesterday, We will begin testing a technology that allows insurance companies to identify vehicles that follows the system of staying idle one weekday per week, adding, A measure to discount car insurance to those who participate in the system will take effect from Jan. 1 next year.
The discount will likely be offered yearly in the form of reimbursement after a motorist observes the system over the insurance coverage period. A driver can submit driving records to an insurer, who will then confirm and offer the discount.
For a motorist to get the discount, he or she must purchase an insurance policy that includes a provision for the discount and install an on-board diagnostics system for operation tracking. The amount of discount has yet to be determined, but financial authorities have demanded that insurers raise the discount rate to about 10 percent of premiums to encourage more to participate.
To prevent disclosure of private information, the on-board diagnostics system will only record dates and distances of vehicle operation. The system will cost 20,000 (17 U.S. dollars) to 40,000 won (34 dollars) per unit and the motorist must buy and install it. Certain insurance companies, however, are considering subsidizing motorists who install the system through discounts in premiums.
Vehicles produced before 2000 that cannot accommodate the diagnostics system will likely not benefit from the discount for the time being. A financial authority source said, Vehicles unable to have the system installed cannot receive the insurance premium discount for some time.
We will consider other measures to allow insurers to monitor whether a motorist follows the system of keeping his or her car home one weekday per week, including installation of black boxes, for vehicles produced before 2000.