Usually included in the base price

Liability insurance — pays for damage or injury to otherpeople or property when you cause an accident.

Basic Collision Damage Waiver (CDW) — protects againstdamage to the rental car itself. But Basic CDW has a highdeductible, typically ₩500,000–₩1,000,000.

Taxes and standard fees — usually included in the online price.

"Insurance included" does not mean "you pay ₩0 if there'sdamage." It means you pay up to the deductible amount.

Not included — common extras

Full CDW (Super Cover)

• Reduces your deductible to ₩0 in normal accidents
• Adds about ₩20,000–₩50,000 per day
• Doesn't cover intentional damage or illegal driving

Tire & glass protection

• Covers damage to tires and windshield
• About ₩10,000–₩20,000 per day

Personal Accident Insurance (PAI)

• Covers injury or death of driver and passengers
• About ₩10,000–₩20,000 per day
• Often already covered by your travel insurance — check first

Extra driver fee — some companies charge extra if 2+people will drive.

GPS / navigation unit — less needed now since most peopleuse phone maps (Naver Map, Kakao Navi). Some companies stillcharge a small fee.

When booking, always check which items are marked "included,"which are "optional" or "add-on," and the daily price for each.

The deductible

— the most important number

This is the #1 thing foreigners miss when renting cars in Korea.

Deductible = the maximum amount you must pay yourself if the car is damaged.

Example

You hit a pole and the repair costs ₩2,000,000:

[표 — Insurance Comparison]

Same accident. Different outcome based on insurance level.

Korean rental terms (you'll see these on websites)

[표 — Korean Insurance Terms]

What basic CDW often excludes

Even with basic CDW, you may still pay for:

• Tire damage
• Windshield damage
• Single-vehicle accidents (no other car involved)
• Loss-of-use compensation (휴차보상료) while car is being repaired

Basic CDW does not equal peace of mind. Always check thedeductible amount and exclusions.

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Full CDW: when is it worth it?

Full CDW is a good idea if

• It's your first time driving in Korea
• You feel nervous about Korean roads or tight parking
• You're renting an expensive car (large SUV, van, luxury)
• You're driving in an unfamiliar area (like Jeju)
• You want to avoid stress if anything goes wrong

In these cases, paying ₩20,000–₩50,000/day extra removesmost of your risk.

Full CDW may not be needed if

• You have strong credit card rental insurance, AND
• You have travel insurance that explicitly covers rentalcars in Korea, AND
• You have written confirmation of the coverage

Many credit cards say "rental car insurance included" butexclude Korea or have hidden conditions. If you're not 100%sure, treat it as not covered and buy Full CDW.

How to verify your existing coverage

1. Call your card / insurance provider
2. Ask: "Does my rental car insurance cover South Korea?"
3. Ask: "What's my deductible if the car is damaged?"
4. Ask: "Are tires, windshields, and single-vehicle accidents covered?"
5. Get the answer in writing (email)

A surprise ₩2,000,000 charge ruins any savings.

Quick choice

[표 — Insurance Quick Choice]

When in doubt, go with Full CDW. The extra cost (~$15–40/day)is much smaller than a potential ₩1,000,000+ repair bill.

Costs you still pay

— even with Full CDW

Insurance only covers damage to the car and other people.You still pay for:

Operating costs

• Fuel (gasoline, diesel, LPG, electricity)
• Highway tolls (Hi-Pass)
• Parking fees

Penalties

• Traffic fines (speeding, illegal parking, school zones)
• Camera-detected violations

Insurance void (you pay 100%)

• Drunk driving damage
• Driving without proper documents
• Racing, off-road driving, prohibited areas
• Accidents while an unregistered driver was driving

Return-related fees

• Returning with less fuel than required (full-to-full policy)
• Late returns
• Smoking in a non-smoking car (cleaning fee)
• Lost key
• Lost or damaged Hi-Pass device

Jeju Island

Jeju is the most popular place in Korea to rent a car. The pricing structure is a bit different.

Jeju prices

[표 — Jeju Rental Companies]

Prices vary widely by season (summer & holidays = much higher),how early you book, and car type & insurance level.

Jeju pricing trap

Base car price looks cheap. After adding insurance, the real cost is much higher. The gap between basic 자차 and 완전자차 is usually larger in Jeju than mainland.

Same legal rules apply

Even at cheaper Jeju shops, you still need:

• Original home-country driver's license
• IDP (Geneva or Vienna Convention country)
• Passport with Korea entry stamp

And Korean traffic laws apply equally.

Don't fall for "no IDP needed"

Some local Jeju shops may say:

• "You can drive with just an English license."
• "No IDP needed."

This is false under Korean law.

If you drive on this advice and have an accident:

• Insurance may be void
• Treated as unlicensed driving
• Fine: up to ₩3,000,000 + possible criminal charges

Trust Korean government sources, not one cheap rental shop.

Jeju has no toll roads

Unlike mainland Korea, Jeju has no expressway tolls. So noHi-Pass needed there.

Language support in Jeju

• National brands (Lotte, SK, Hertz, Avis): English support,clear contracts
• Local Jeju shops: often Korean-only websites and staff,contracts may be unclear

Jeju strategy for foreigners

[표 — Jeju Strategy for Foreigners]

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Pre-booking checklist

Before confirming your booking, check

Total price

• Is the price shown per day or for the whole trip?
• Are taxes and fees included?

Basic insurance

• Does the price include liability insurance (other people)?
• Does it include basic CDW (the car)?
• What's the deductible amount?

Full CDW

• How much extra per day for Full CDW?
• Does it reduce the deductible to ₩0?
• Are tires, windshield, single-vehicle accidents included?
• Is loss-of-use compensation (휴차보상료) included?

Other coverage

• Do I have travel insurance that already covers some of these?
• Do I have credit card rental insurance verified for Korea?

Location

• Am I renting in Jeju or mainland?
• Local company or national brand?