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In Hong Kong, car insurance is a type of financial protection required for all vehicles operating on public roads. There are many types of car insurance available, but under Hong Kong law all vehicles must be covered at least by a Third-Party Car Insurance policy, but other more comprehensive options are available.

Car insurance is available for all sorts of vehicles, including buses and motorbikes, and providing proof of insurance is necessary to register your vehicle with the Transport Department on either an individual, or commercial, basis. Failure to have adequate car insurance on your vehicle can result in penalties.

Why is car insurance mandatory?

Car insurance ensures that you have adequate funds to cover your liability at law for any accident you have caused. This is important because car accidents can be expensive and have far-reaching consequences depending on their severity. Hong Kong law consequently ensures that money for compensation is in place for all vehicles on the road.

All Hong Kong car insurance plans will cover you for your financial liability towards third parties, or bystanders, for their losses as a result of an at-fault accident — this is what is provided by a Third-Party Car Insurance plan.

Only more comprehensive, and expensive, car insurance options will cover you for damage on your own vehicle, or against considerations like theft. However, these additional coverage options are not mandatory under Hong Kong Law, so for many people the increased cost may not be worth it, depending on the value or age of their vehicle.

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What to do after a car accident?

After any traffic accident or collision of vehicles, the first thing you should do is check yourself and your passengers for any injuries. If you’re not too hurt to move, you should try to get to a safe location from which to call 999 and report the accident to the police.

hong kong emergency services number 999
If you’re in a car accident, call 99 and report the accident to the police (© Hong Kong Tourism Board)

Once help arrives, you should exchange all your insurance information with the other parties, if able, and take notes of things like the police report number, location of the accident, make and model of the other vehicle, and any other relevant details. Any pictures gathered at this time will be helpful.

You may want to notify your insurance company while at the scene, or you can wait until you get home and the adrenaline wears off. But you should start the claims process as soon as possible after the accident, once it is safe for you to do so.

What is Car Rental Excess Insurance?

Car Rental Excess Insurance is a benefit often included on some Hong Kong and International Travel Insurance products. If you rent a vehicle while on holiday overseas and purchase any insurance on that vehicle (like taking an optional Collision Damage Waiver, or CDW, offered by the rental company), then you are normally not responsible for the costs of repairing any damage to that vehicle while it is in your possession.

Despite this, some rental companies include a Deductible (also known as an Excess) in their CDW offering. This would require you to contribute some money towards the repair costs of the car. The exact amount will vary depending on the rental company and insurance underwriter they work with. However, if your travel insurance policy includes a Car Rental Excess benefit, then your travel insurance policy will pay this cost for you, instead of the costs coming directly out of your pocket.

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Can my wife drive my car without insurance?

All cars operating on Hong Kong roads must have insurance, so the answer to, “Can anyone drive without insurance?” is “No, unless they are on private property.” Having said this, your wife does not need her own insurance policy to drive your car. As the owner of a vehicle, you are free to let any licensed person operate your car.

car insurance policy accident
Nominate your spouse as a “named driver” in your policy to avoid incurring additional costs in the event of a car accident (© freedomz via Canva)

However, if an accident occurs, and the driver at the time of the accident is not listed on the insurance policy as a named driver, then an additional excess or deductible will likely be required by you in order for the insurance company to settle the claim. The way to avoid this is by nominating your wife on the policy as a “named driver.” By doing this she would be able to drive the car on your insurance, without incurring additional costs in the event of an at fault accident.

How to end car insurance?

The simplest way to end a car insurance policy is to simply let the policy expire at the end of its annual contract. Once the policy has expired, the car insurance is no longer in force and you are not obligated to pay any more premiums — but your car cannot operate on public roads legally until reinsured.

It is possible to end a car insurance policy before the conclusion of the contract by informing the insurance company at least 7 or more days in advance of the date you wish to cancel by. If no claims have been settled, depending on the length of time the policy has been in force, you may be entitled to a refund on any premiums paid. Cancelling your car insurance policy within 1 month of renewal or inception will give you a larger refund than if you cancel it at 5 months or later.

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How do I get car insurance?

Getting car insurance in Hong Kong couldn’t be easier than contacting a broker like CCW Global Ltd for a comparison of leading options provided by an array of underwriters, and then selecting the plan that best meets your needs and budget.

CCW Global is a broker — which means they are legally obligated to work for your interests, and not those of the insurance company. So when you talk to a company like CCW about getting your car insurance in Hong Kong, you’re receiving unbiased advice about the plans and products that are right for you.

For more information, contact CCW Global and request a free quotation today.

About CCW

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CCW Global is a leading Hong Kong Insurance Broker and can assist you in making the best decision for your needs. They can help you obtain free competitive quotes for your many insurance needs.

CCW makes it easy to view personalised comparisons from different companies to help you make the best choice.

Header image credit: Leung Cho Pan via Canva

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From the Middle East to the Far East and a couple of places in between, Anjali has lived in no fewer than seven cities in Asia, and has travelled extensively in the region. She worked as a lifestyle journalist in India before coming to Hong Kong, where her favourite thing to do is island-hopping with her daughter. You can check out her musings on motherhood, courtesy her Instagram profile.

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