In collaboration with CCW Global
Hong Kong is famous for its beautiful and scenic drives. Our bridges, tunnels, and highways often pass famous landmarks and gorgeous sceneries. Taking a drive on the Cross Harbour Tunnel or Conduit Road, particularly the “slope section” is both breath-taking and fun.
But whether you are motoring on the swirly and mountainous roads, across one of the many bridges, driving in congested and densely populated areas, or if you’re concerned about parking outside during the typhoon season, your car insurance is critical.
Are Motor Insurances Mandatory in Hong Kong?
The third-party car insurance is mandatory in Hong Kong, and other types of coverage are optional. This is the minimum legal for professionals or individuals, both for cars and motorbikes. Drivers can also consider adding other coverages to lower risks.
The government requires this third-party coverage to provide protection for the policyholder from their liability to other drivers for accidents they may cause. This is designed to protect all drivers on the roads. The penalties for failing to carry this minimum cover can be quite severe – the maximum penalties include a fine of HK$ 10,000, imprisonment for 12 months, and being disqualified from driving anywhere from one to three years.
What are the Different Insurances and What do They Cover?
Third-Party Car Insurance
Third-party car insurance is the basic minimum coverage you need to drive your vehicle on public roads in Hong Kong legally. This coverage is designed to cover your legal liabilities toward another driver if you cause an accident that results in damage, injury or death.
This type of coverage aims to ensure other drivers on the roadways are protected against damages caused by another person also.
The minimum limits are:
- Third-party death or bodily injury – HK$ 100,000,000
- Damage to third-party property – HK$ 2,000,000
It is common to have a deductibles on your insurance in Hong Kong – you will select your deductible amount with your insurer when you purchase your policy.
Comprehensive Car Insurance
A comprehensive motor insurance policy is a good idea if you want to protect your vehicle against loss or theft and yourself against damages, death or injuries to third parties.
The comprehensive car insurance combines third-party insurance and additional coverage, which might be handy in Hong Kong. However, it is important to work with your agent and select the proper coverage amount for the value of your vehicle. There could be penalties at the time of claim payment should you over or under-insure your vehicle.
Commercial Vehicle and Fleet Insurance
Private motor policies like the Comprehensive Car Insurance can only be used for vehicles used for pleasure. Any vehicle used for commercial purposes – truck, car, or van – must be registered as a commercial vehicle and insured with a commercial and fleet vehicle insurance.
The limits for commercial policies are:
- Third-party death or bodily injury – HK$ 100,000,000
- Damage to third-party property – HK$ $1,000,000
Another difference between commercial and personal motor policies is that many commercial policies are sold individually by the insurance company. The commercial vehicle No-Claims Discount differs, as well – it accrues up to 30% on commercial auto policies.
The No-Claims Discount is a reward for being a good driver – when you remain claims-free for at least one year, you begin accruing a discount off your car insurance premium, up to 60% of your total premium on personal auto policies.
FAQs about car insurances in Hong Kong
Are the Rules Different for Business and Commercial Cars?
Both personal and business vehicles must carry third-party car insurance. The limits differ slightly, and there are some differences in the way policies are sold, and claims are handled. Both private and business vehicle owners may elect to purchase more coverage than the required minimum limits if desired.
Do you Need Full Coverage Insurance in Hong Kong?
No, you do not need full coverage of motor insurance in Hong Kong. The government mandates you carry third-party car insurance. Additional comprehensive coverage to protect your vehicle is optional.
Do you Need Insurance for Motorbikes in Hong Kong?
Yes, you are legally obligated to insure your motorbike with at least third-party coverage before driving on public roadways in Hong Kong. You may opt to add comprehensive coverage in addition to your third-party liability policy to provide coverage to you in case of damage to your motorbike.
How do you Insure High-end Cars in Hong Kong?
Luxury cars require special handling and often have different needs when it comes to motor insurance. Some plans are designed for high-end vehicles and provide additional benefits such as higher limits and expanded coverage. One important benefit to consider is a “no-depreciation” plan where your vehicle is covered for its full value in the event of a total loss.
What is the Situation for Young Drivers?
Car insurance can be quite expensive for young drivers. While on your probationary driving license and under the age of 21, you will likely not be able to purchase your policy. After three years of driving experience, you will start to see lower premiums. Having a more experienced driver on your policy may make it more affordable, too.
About CCW
CCW is a reputable insurance broker located in Hong Kong. They can help you obtain free competitive quotes for your many different insurance needs.
CCW makes it easy to view personalized comparisons from different companies to help you make the best choice.
More about insurances in Hong Kong:
- The 3 Main Types Of Insurance Companies In Hong Kong (And Their Pros & Cons)
- All You Need To Know About Business Insurances in Hong Kong
- All You Need To Know About Employee’s Compensation Insurance In Hong Kong
- Critical Illness Insurance in Hong Kong : Are You Covered?
- Protect Your Business: 5 Must-Have Professional And Financial Insurances in Hong Kong
- All You Need To Know On Public Liability Insurance In Hong Kong
- Your Go-To Guide To Event Insurances In Hong Kong
- 3 Reasons To Get Insurance Before You Fly this Christmas
- Do I Need Health Insurance in Hong Kong?
- Home Insurance in Hong Kong: What you need to know
- The HK HUB Startup Insurance Guide
