SEOUL, April 28 (Korea Bizwire) — The Financial Supervisory Service, South Korea’s financial regulator, said on Wednesday that insurance premiums for vehicles converted for outdoor camping will be reduced next month under the Motor Vehicle Management Act, which lifts the relevant restrictions.
Since the amendment to the law, 12,200 vehicles have been approved for renovation.
Drivers who convert a van used for business purposes into a private vehicle are now insured for private vehicles and no longer for vans.
Business vehicle insurance premiums are typically 10 percent more expensive than personal vehicle insurance plans. Therefore, insurance rates for all refurbished van owners will drop over the next month.
It will also add an exclusive insurance plan for drivers converting a passenger car into an RV that is 40 percent cheaper than personal vehicle insurance plans.
For example, annual insurance premiums for Kia Corp’s Ray compact car are currently 1,092,630 won ($859). If Ray is converted into a camper van, insurance premiums drop to 633,730 won, a 42 percent reduction.
Ashley Song ([email protected])