From the left in the photo: Park Han-yong, CEO of JP Warranty; Kim Mi-yeon, Director of Public Relations; and Heo Jung-min, Senior Executive Vice President of Heungkuk Fire & Marine Insurance’s Corporate Business Division. /Photo provided by Heungkuk Fire & Marine Insurance.
On the 2nd, Heungkuk Fire & Marine Insurance announced that it will expand the used car extended warranty service ‘Jump Warranty’ in collaboration with JP Warranty, a company specializing in automobile warranties.
Used cars that have undergone inspections by the Korea Automobile Inspection and Warranty Association are currently only covered for a month through mandatory insurance. However, the newly offered ‘Jump Warranty Extended Warranty Service’ covers defects in major components such as the engine and transmission for up to 1 year or 20,000 km.
According to the Ministry of Land, Infrastructure and Transport, the annual volume of used car transactions in Korea exceeds 4 million units, surpassing new car sales. Nonetheless, more than 10,000 consumer complaints are filed annually due to issues such as discrepancies in performance and condition, undisclosed accident or flood history, and lack of warranty.
A representative from Heungkuk Fire & Marine Insurance stated, “Expanding performance checks and warranties for used cars plays an important role in protecting consumer rights and establishing a healthy distribution culture. We aim to contribute to the development of a trustworthy used car market through our differentiated insurance services.” JP Warranty also commented, “The extended warranty service will help alleviate consumer anxiety and enhance industry competitiveness.”
Meanwhile, experts advise checking performance and condition reports, reviewing warranty coverage and duration, and confirming accident or flood history when buying a used car.