Liability and Auto Insurance, Korea

INSURANCE:Under Korean Law, auto liability insurance is compulsory for vehicles with an engine displacement size of 50cc and above for use on the road. Insurance is not compulsory for moped or other vehicles under 50cc, but owners are strongly encouraged to purchase it. In fact, no foreign resident or visitor should drive any vehicle without full insurance coverage given the liability policies and practices in Korea.
Auto insurance policies are issued for a period of one year with the renewal date corresponding to the vehicle’s inspection date. When a vehicle is sold, the “CALI” (Compulsory Auto Liability Insurance) transfers automatically for a period of 15 days from the former owner to the new owner.
New owners should purchase auto insurance in excess of “CALI”. Insurance policies with unlimited liability for bodily injury are available in Korea and such coverage is a prerequisite for protection under the Special Law. Auto insurance policies can only be purchased from companies licensed by the Korean government. Each company provides the same form of coverage at standard premium rates and there are a number of U.S. and foreign insurance companies operating in Korea. Some Korean insurance companies also have English speaking staff. Look for the insurer who can provide the best service.