Gov't, ruling party to announce plan to reduce car insurance premium after curbs on public vehicles

▲ The ruling Democratic Party holds a meeting of a special committee on responses to the Middle East crisis at the National Assembly in Seoul on April 13, 2026. (Yonhap)

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Gov't, ruling party to announce plan to reduce car insurance premium after curbs on public vehicles

By Kim Eun-jung

SEOUL, April 13 (Yonhap) -- The ruling Democratic Party (DP) and the government agreed Monday to announce a plan next week to reduce car insurance premiums as an odd-even rule for public vehicles has been implemented to curb demand from rising oil prices from the war in the Middle East.

The DP's special committee on the Middle East crisis proposed the measure as the government has restricted the use of passenger cars by public institutions.

"The Financial Services Commission and insurance authorities are closely discussing measures to reduce premium rates and plan to announce them as early as next week," DP lawmaker Ahn Do-geol told reporters.

The government first introduced a five-day vehicle rotation system in the public sector on March 25, which is estimated to save 6,900 barrels of oil per month. After tightening the measure to an odd-even system on April 8, monthly energy savings are expected to reach between 17,000 and 87,000 barrels, according to Ahn.

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