What Korea's used-car performance inspection liability insurance covers
This calculator estimates a claim under Korea's motor-vehicle performance and condition inspection liability insurance, often described in English as used-car performance warranty insurance.
It is designed for a buyer who purchased a used vehicle through a licensed Korean motor-vehicle dealer and later found that the vehicle's actual performance or condition differs from the dealer-disclosed inspection record.
The insurance responds to the performance inspector's legal liability for a covered inspection error; it is not a general mechanical-breakdown warranty, comprehensive motor insurance, or a promise that every post-sale fault will be repaired.
Record age: 120 days
The performance and condition inspection record used for contract disclosure should be based on an inspection completed within 120 days.
Minimum: 30 days and 2,000 km
Form No. 82 provides at least 30 days and at least 2,000 km from delivery, ending when the first limit is reached.
Buyer deductible: KRW 0
Car365 explains that the performance inspection business, not the vehicle buyer, bears the policy deductible.
This is a planning estimate for a Korean claim, not a vehicle diagnosis or an insurer's coverage decision.
The signed inspection record, insurance certificate, policy wording in force for the claim, repair authorization, and loss adjustment control the actual outcome.
Legal basis checked for the 2026 calculator
The legal and official guidance review date is July 26, 2026.
The current Motor Vehicle Management Act version reviewed for this calculator is MST 286989, effective June 16, 2026.
Article 58 requires the dealer to disclose the vehicle's performance and condition information, while Article 58-4 establishes the performance inspector's guarantee obligation and mandatory liability insurance framework.
Article 13-4 of the Enforcement Decree describes the required liability insurance and requires exclusions, deductibles, and payout limits to be made clear.
Article 120 of the Enforcement Rule and Form No. 82 govern the inspection record, including the 120-day disclosure context and the minimum time-and-mileage warranty statement.
Current Korean sources and how each source affects the used-car performance warranty calculator| Source | Verified version | Calculator use |
|---|
| Motor Vehicle Management Act, Articles 58 and 58-4 | MST 286989 · June 16, 2026 | Dealer disclosure, inspector guarantee, liability insurance |
| Enforcement Decree, Article 13-4 | MST 286479 · June 3, 2026 | Insurance type, notified scope, exclusions and limits |
| Enforcement Rule, Article 120 and Form No. 82 | MST 286695 · June 3, 2026 | Inspection-record timing, 30 days, and 2,000 km |
| MOLIT Notice No. 2020-527 | Effective September 27, 2020 · current when checked | Covered inspection-error categories and exclusions |
| Car365 liability-insurance FAQ | Checked July 26, 2026 | Claim route, buyer deductible, indirect loss, fixed-rate examples |
The notified warranty scope includes categories such as vehicle identity, unlawful modification, rental or commercial-use history, major engine and transmission items, drivetrain, steering, braking, electrical systems, high-voltage systems, fuel systems, exterior panels, and structural frame items when the disclosed inspection result is erroneous.
Normal consumables and items that could not reasonably be inspected through the prescribed ordinary inspection process may be excluded.
Coverage still depends on the specific record entry, policy schedule, facts of the defect, and the insurer's causation review.
The three timing tests you should complete first
1. Was the disclosed inspection record no more than 120 days old?
Enter the number of days between the inspection date shown on the record and the relevant contract disclosure date.
The calculator treats exactly 120 days as within the boundary and 121 days as outside it.
Do not confuse this record-age test with the separate warranty period that begins when the vehicle is delivered.
2. Are you still within the stated number of days after delivery?
Form No. 82 states a minimum warranty period of 30 days from delivery.
If the actual inspection record or certificate promises a longer period, such as 60 days, enter that longer contractual figure.
The calculator normalizes an input below 30 to the minimum 30-day figure, treats the final stated day as included, and flags the following day as expired.
3. Are you still within the stated mileage after delivery?
The minimum mileage warranty is 2,000 km measured from the delivery mileage, not the vehicle's lifetime odometer reading by itself.
Subtract the odometer reading at delivery from the current reading and enter the distance driven since delivery.
The calculator treats exactly 2,000 km as within the minimum boundary and 2,001 km as beyond it, unless the record promises a longer mileage limit.
Time and mileage do not operate as alternatives that let you choose the more favorable limit.
The warranty ends when either stated limit is reached first, so both tests must be satisfied at the time relevant to the claim.
How the compensation formulas work
Approved repair, tuning restoration, and other confirmed direct loss
Submitted direct cost = covered parts + covered labor + recognized inspection cost
Recognized direct cost = max(0, submitted direct cost − excluded direct cost)
Provisional amount = min(recognized direct cost, confirmed item limit)
Covered parts and labor should come from the insurer-approved estimate, not merely from the first retail repair quote you receive.
A diagnostic or detailed inspection cost can be entered when the insurer recognizes it as part of a covered loss determination.
Consumables, unrelated repairs, normal wear, and the additional price of a buyer-requested new part over an accepted remanufactured or alternative part belong in excluded direct cost.
Entering a confirmed item limit of zero means that the limit is not yet known; the calculator displays recognized direct cost as a provisional formula amount and marks the result for review instead of interpreting zero as a confirmed no-payment limit.
VIN, engine-type, rental-history, or commercial-use mismatch
Korean-manufactured vehicle
min(standard value × 9%, KRW 1,000,000)
Imported vehicle
min(standard value × 9%, KRW 2,000,000)
The Car365 FAQ describes a fixed-rate calculation using 9% of the Korea Insurance Development Institute vehicle standard value for an identity or disclosed-use-history error.
The described cap is KRW 1,000,000 for a Korean vehicle and KRW 2,000,000 for an imported vehicle.
This standard value can differ from the purchase price, advertised market price, outstanding loan balance, or the amount a buyer believes the vehicle is worth.
The 9% figures are operational policy guidance rather than a tax rate written directly into the Act, so the insurance certificate and current policy wording must be checked before relying on them.
Tuning-description mismatch
Car365 explains that a tuning-description mismatch can be measured by actual restoration cost, subject to an item-specific percentage of vehicle standard value.
Because the applicable percentages depend on the modification category and policy material, this calculator does not invent or hard-code a percentage.
Enter the approved restoration parts, labor, and inspection cost as direct loss, then enter the item limit confirmed by the insurer.
Step-by-step calculator guide
- Choose the claim category.
Select an approved component repair, identity mismatch, rental or commercial-use history mismatch, tuning mismatch, or another direct loss already confirmed by the insurer.
- Enter record age, delivery time, and delivery mileage.
Use dated documents and odometer evidence rather than memory, and enter any longer warranty period or mileage stated on your actual record.
- Complete the eligibility checks.
Confirm a licensed-dealer transaction, a real record discrepancy, notified and policy scope, repair authorization, and whether manufacturer warranty handling was selected for the same loss.
- Separate the estimate into covered and excluded amounts.
Enter approved parts, labor, and recognized inspection cost, then subtract consumables, unrelated work, and upgrade differences rather than presenting one undifferentiated workshop total.
- Read the status as well as the amount.
A green result means no automatic exclusion was found, amber means a limit or repair route still needs confirmation, and red means at least one entered core condition currently prevents an estimated payout.
- Call the insurer before repairs begin.
Use the contact details on the liability-insurance certificate, obtain a claim number, and confirm the partner shop or separately authorized repair facility in writing when possible.
Worked examples
Example 1 · Repair estimate with a confirmed limit
Assume approved parts of KRW 1,200,000, labor of KRW 500,000, and recognized diagnostic cost of KRW 100,000.
Submitted direct cost is KRW 1,800,000, and subtracting KRW 200,000 of consumables or other exclusions leaves KRW 1,600,000 of recognized direct cost.
If the insurer-confirmed item limit is KRW 1,000,000, the formula amount is KRW 1,000,000.
If towing, rental, or other indirect cost is KRW 300,000, estimated buyer burden is KRW 1,100,000 because indirect loss is not added to the policy payout.
Example 2 · Korean vehicle with incorrect rental history
A KIDI vehicle standard value of KRW 20,000,000 produces KRW 1,800,000 at 9%.
The Korean-vehicle cap of KRW 1,000,000 is lower, so the formula amount is KRW 1,000,000 when all other requirements are satisfied.
Example 3 · Imported vehicle identity mismatch
A KIDI vehicle standard value of KRW 20,000,000 again produces KRW 1,800,000 at 9%.
Because this is below the imported-vehicle cap of KRW 2,000,000, the formula amount remains KRW 1,800,000.
At a value of KRW 30,000,000, the 9% amount would be KRW 2,700,000 and the imported-vehicle cap would reduce it to KRW 2,000,000.
Example 4 · Mileage limit exceeded by one kilometer
If the stated mileage warranty is 2,000 km and the vehicle has been driven 2,001 km since delivery, the mileage condition is outside the stated limit even if only ten days have passed.
The calculator preserves the loss formula for comparison but sets estimated payable amount to KRW 0 because the core mileage condition fails.
Costs that may be covered and costs commonly kept separate
Potential direct loss
- Insurer-approved repair cost for a component within the notice and policy schedule
- Covered labor and a detailed inspection charge recognized for a payable loss
- Approved restoration cost for an incorrectly disclosed tuning item
- Policy-based fixed compensation for an identity or usage-history discrepancy
Potential exclusion or buyer cost
- Normal wear, consumables, unrelated faults, and items outside the inspection scope
- The price difference for a new part requested instead of an accepted remanufactured or alternative part
- Towing, temporary transport, rental, business interruption, and other indirect loss
- Unauthorized repairs completed before the insurer could inspect or approve the repair route
Car365 states that the liability insurance does not make an unrepaired cash settlement to the buyer simply because a retail repair estimate exists.
The published process is to repair through an insurer partner or another repair facility specifically approved by the insurer, with the approved repair amount paid to the repair business.
This is why the calculator treats repair-route confirmation as a review flag and why a user should not authorize dismantling or replacement work before contacting the certificate call center.
Documents and evidence to prepare
- The signed sales contract showing the licensed dealer and delivery date
- The complete performance and condition inspection record, including the inspection date, mileage, warranty entries, and inspector information
- The liability-insurance certificate with the insurer, policy number, contact center, coverage limits, and exclusions
- Photographs of the odometer at delivery and discovery, warning lamps, leakage, damaged areas, or other observable symptoms
- A dated diagnostic record and itemized estimate separating parts, labor, inspection charges, consumables, unrelated work, and optional upgrades
- The insurer claim number, call notes, partner-shop direction, written pre-authorization, and any loss-adjuster explanation
Record discovery promptly and avoid continuing to drive when doing so could enlarge the damage or compromise safety.
If the insurer reduces or rejects the claim, request the applicable policy clause, factual reason, loss-adjustment calculation, and dispute contact in writing.
These materials also make it easier to distinguish an insurance coverage issue from a separate dealer disclosure, contract cancellation, or civil damages dispute.
Frequently asked questions
Does every breakdown within 30 days qualify?
No.
A qualifying claim generally requires an actual difference between the disclosed inspection record and the vehicle, an item within the notified and policy scope, the time-and-mileage conditions, and the insurer's causation and repair review.
Can I satisfy either the 30-day limit or the 2,000-km limit?
No.
The wording applies the limit that arrives first, which means both time and mileage must still be within the values stated on the record.
Does the buyer pay the insurance deductible?
Car365's public FAQ explains that the performance inspection business, as policyholder and insured, pays the deductible, while the buyer does not.
The calculator therefore fixes buyer policy deductible at KRW 0, but uncovered repairs and indirect loss can still remain the buyer's practical cost.
Does a private person-to-person purchase use this insurance?
Car365 explains that a private direct sale is not subject to the dealer's mandatory performance inspection liability insurance arrangement.
Other contractual or civil remedies may exist, but they require a separate factual and legal review and are not added by this calculator.
Can I repair first and ask for cash later?
That approach is risky.
The official FAQ describes repair through an insurer partner or separately approved shop and says unrepaired cash compensation is not provided, so contact the insurer before authorizing work.
Can manufacturer warranty and this insurance pay the same repair?
Car365 guidance says that when the same defect is handled under a manufacturer warranty program, the performance inspection liability insurance does not pay the same loss again.
Compare repair scope, parts policy, facility, timing, and written approvals before choosing a route.
Important limits of this estimate
The calculator cannot determine whether a mechanical condition existed at inspection, whether the inspection method should have detected it, or whether the claimed repair is causally connected to an incorrect record entry.
It does not retrieve a KIDI vehicle standard value, a confidential insurer schedule, a VIN-specific parts list, a tuning-item percentage, or an insurer's remaining aggregate policy limit.
It also does not combine this policy with dealer damages, contract cancellation, manufacturer warranty, consumer dispute mediation, litigation interest, emotional damages, rental costs, towing, or business interruption.
Use the output to organize a claim conversation, not as a guaranteed receivable or legal opinion.
Official sources
Korean statutes, notices, forms, and policy guidance can change after the review date.
Check the official Korean source and your insurance certificate before making a repair or settlement decision.
Recalculate with the record and insurance certificate beside you
Using the actual inspection date, delivery mileage, itemized approved estimate, exclusions, and policy limit turns a rough number into a useful checklist for the insurer call.
Return to calculator