World · East Asia & Pacific · 18 hrs ago
South Korea’s Supreme Court sets standard for accident rental-car costs
South Korea’s Supreme Court ruled on how to calculate rental-car costs while a vehicle is being repaired after a traffic accident.
The cost should match the market rate for a car with the same use value as the damaged vehicle.
Similar engine size and age alone are not enough to classify two cars as equivalent.
The case was brought by a rental-car company seeking payment from a non-life insurer.
The ruling sets a more specific basis for calculating rental costs in accident-related disputes.
The Supreme Court overturned a lower court decision that had favored the rental company and returned the case for further proceedings.
South Korea’s Supreme Court ruled that rental-car costs during accident repairs should be based on the market rate for a car with equivalent objective use value.
It said cars should not be treated as equivalent solely because they have similar engine sizes and model years.
The ruling came in a rental company’s lawsuit against a non-life insurance company over rental charges.
The court overturned a lower court ruling in favor of the rental company and sent the case back.
- Who
- South Korea’s Supreme Court, in a case between a rental-car company and a non-life insurance company.
- What
- It set a standard for calculating rental-car costs while a vehicle is being repaired after an accident.
- When
- The ruling was issued last month, according to the article published on November 8, 2026.
- Where
- South Korea.
- Why
- The court said costs should reflect the market rental rate for a car with equivalent objective use value, rather than relying only on similar engine size and model year.
Rental-car company
Non-life insurance company
Rental charges
Rental-car company
The company sought payment for rental charges.
Non-life insurance company
The insurer was the defendant in the claim; its specific position is not stated.
The Supreme Court overturned the lower court ruling in favor of the rental-car company.
Donga Ilbo published its report on the ruling.
- Court
- Supreme Court of South Korea
- Case
- Rental-car company’s claim against a non-life insurance company
- Cost standard
- Market rental rate for a car with equivalent objective use value
- Lower-court ruling
- In favor of the rental-car company; overturned by the Supreme Court