One of the most common questions expats in Korea ask is: “Do I really need car insurance to drive here?” The short answer is yes. As of August 2025, Korean law requires every driver—including foreigners with international licenses or short-term stays—to have car insurance. Driving without it can result in heavy fines, suspension, or even criminal charges in the case of accidents. This article explains why insurance is mandatory, what type you need, and how foreigners can get coverage without hassle.
Quick Summary:
- Car insurance is mandatory in Korea for all drivers, including expats.
- Liability coverage is the minimum required by law.
- Without insurance, you face fines of up to 1,000,000 KRW and license suspension.
- Comprehensive plans are strongly recommended for expats new to local roads.
- Applications require an Alien Registration Card (ARC) and a valid driver’s license.
Is Car Insurance Mandatory for Foreigners in Korea?
Yes, all foreigners must have insurance if they plan to drive in Korea. Even if you use an International Driving Permit (IDP), you are not exempt from the insurance requirement. Liability insurance, which covers injury or damage to others, is the legal minimum.
Quick Insight · Legal & Market Context
- Legal Obligation: Minimum liability insurance required within 10 days of car registration → Next step: Prepare ARC and license before car purchase.
- Economic Factor: Average annual premium for foreigners: 900,000–1,500,000 KRW → Next step: Compare multiple insurers for better rates.
- Social/Tech: More insurers now offer English claims support via apps → Next step: Choose expat-friendly providers.
What Happens If a Foreigner Drives Without Insurance?
Driving uninsured in Korea is a serious offense. Foreigners caught without coverage face fines, license suspension, and potential deportation if involved in accidents. Local authorities are strict, especially with expats, to ensure equal responsibility under the law.
What Type of Car Insurance Do Foreigners Need?
At minimum, liability insurance is required. However, most foreigners opt for comprehensive coverage, which includes liability plus protection for their own car. This reduces financial risks in case of accidents or theft.
Coverage Comparison
| Type | What It Covers | Recommendation |
|---|---|---|
| Liability Insurance | Injury or property damage to others | Legally required minimum |
| Comprehensive Insurance | Liability + your car’s damages | Best choice for expats |
| Collision Only | Damage from collisions only | Budget option, less common |
What Documents Do Foreigners Need for Insurance?
To apply, you’ll need an Alien Registration Card (ARC), a Korean or International Driving Permit, and proof of residence. Some insurers may request your overseas driving history for possible discounts.
My Experience as a Foreigner Getting Insurance
When I first bought a car in Seoul, I assumed my international license would be enough. But the insurer required my ARC, which delayed the process by two weeks. Once everything was submitted, my policy was activated within a day. Lesson learned: prepare documents early to avoid delays.
Frequently Asked Questions
1. Can I drive in Korea without car insurance if I have an IDP?
No. Insurance is required regardless of your license type.
2. Do rental cars in Korea include insurance?
Yes, but usually only basic liability. Always confirm if comprehensive coverage is included.
3. Is car insurance more expensive for foreigners?
It can be slightly higher, especially for younger or first-time drivers. Discounts may apply with proven driving history.
4. Can foreigners pay insurance in installments?
Yes, most insurers allow monthly payments.
5. Which insurers are recommended for expats?
Samsung Fire, Hyundai Marine, and DB Insurance are popular among foreigners for partial English support.
Final Advice for Expats
Foreigners absolutely need car insurance in Korea. Liability coverage is mandatory, but comprehensive coverage is the safest option. To avoid fines, prepare your documents (ARC, license, proof of residence) early and use comparison platforms or bilingual agents for easier application.
From Questions to Action
- Main Concern: Whether expats are legally required to have insurance → Answer: Yes, it’s mandatory.
- One-Line Conclusion: Car insurance isn’t optional—it’s essential protection for expats in Korea.
- Next Step: Start comparing expat-friendly insurers and apply as soon as you register your car.
3-Point Summary:
- Car insurance is legally required for all foreigners driving in Korea.
- At least liability coverage is mandatory, but comprehensive is recommended.
- Prepare ARC, license, and residence proof to avoid delays.
Don’t risk fines or stress. Secure your car insurance in Korea today and drive with peace of mind as an expat in 2025.
Another expat friend in Busan told me he faced a fine because he assumed rental car insurance was enough for personal driving. That experience taught him to always double-check coverage details before hitting the road.
References
- Korea Road Traffic Authority, Insurance Law Update, July 2025 — www.koroad.or.kr
- Financial Supervisory Service Korea, Premium Cost Data 2025 — www.fss.or.kr
- OECD Transport Safety Report 2024 — www.oecd.org
Disclaimer: This article provides general information as of August 2025. It is not legal or financial advice. Always check with official institutions for the latest regulations.
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