Car Insurance

In Hong Kong, it is compulsory to have HKD100,000,000 Third Party Liability insurance in case we injure someone.

In addition, insurers provide liability cover for third party property damage. The maximum property damage cover is HKD2m (This property damage limit can sometimes be increased by negotiation, most commonly to HKD5m).

Similar to most countries, there are two types of car insurances available in HK as well.

Third Party & Comprehensive

While Third party only covers liability to others, Comprehensive cover includes the cost of repairing damage to your own vehicle, whether or not you are at fault.

If your car is worth under HKD1,000,000, most policy wordings will be almost identical in terms of benefits.

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Third-party only and Comprehensive coverage

Coverage Features	Third Party Only (Legal Minimum)	Comprehensive (Full Protection)
Third Party Bodily Injury / Death Statutory requirement in HK	✔ Covered Up to HK$100,000,000	✔ Covered Up to HK$100,000,000
Third Party Property Damage Damage to other cars/public property	✔ Covered Usually up to HK$2,000,000	✔ Covered Usually up to HK$2,000,000
Legal Liability for Passengers Injury to passengers in your car	✔ Covered As part of third party bodily injury	✔ Covered As part of third party bodily injury
Damage to Your Own Car Accidental collision damage	✘ Not Covered	✔ Covered Subject to excess/deductible
Fire & Theft	✘ Not Covered	✔ Covered
Windscreen / Car Windows Cracks or breakage	✘ Not Covered	✔ Covered Usually no excess up to limit (e.g. HK$4K)
Towing Service Following an accident	✘ Not Covered	✔ Covered Reasonable cost to nearest repairer
Medical Expenses	✘ Not Covered	✔ Covered Limited amount per person
No Claim Discount (NCD) Protection Protects NCD even after 1 small claim	✘ Not Covered	✔ Optional / Included Depends on insurer & plan
“New for Old” Replacement For new cars (usually under 1 year old)	✘ Not Covered	✔ Often Included For total loss of brand new cars
24-Hour Roadside Assistance Flat tyre, battery jump-start, fuel delivery	✘ Not Covered	⚠ Optional Often as add-on or included in premium plans
Loss of Use / Car Rental Alternative transport while car is being repaired	✘ Not Covered	⚠ Optional Daily limit and maximum days apply
Personal Belongings Cover Items stolen from or damaged in the car	✘ Not Covered	⚠ Optional Subject to per item and total limits
Voluntary Excess Reduction Pay extra premium to lower excess amount	✘ Not Available	⚠ Optional Reduces out-of-pocket cost in a claim
Natural Disasters Typhoon, flood, landslide damage	✘ Not Covered	✔ Usually Covered Check for specific exclusions
Strike, Riot & Civil Commotion Damage due to social unrest	✘ Not Covered	⚠ Optional / Included May be included in comprehensive plans
Overseas Coverage Extension Short-term cover in Macau / mainland China	✘ Not Covered	⚠ Optional Limited days per trip, extra premium applies
Agreed Value Cover Pre-agreed car value for total loss	✘ Not Available	⚠ Optional For classic or modified cars

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Car Insurance Insights

You need to know

Coverage Type – Choose between Third Party, Third Party Fire & Theft, or Comprehensive based on your protection needs.
Vehicle Value – Ensure your car is insured for the current market value in case of a total loss.
Driving History – Maintain a clean record to qualify for No-Claims Discount which lowers your premiums over time.
Excess Amount – Familiarize yourself with the deductible you’re responsible for paying in partial loss claims.
Optional Coverages – Consider add-ons like windshield repair/replacement or passenger liability coverage.
Vehicle Usage – Inform your insurer about any commercial use that differs from standard social/commuting purposes.
Authorized Drivers – Disclose all regular drivers to be covered under the policy.
Vehicle Security – Confirm your car meets the minimum safety standard requirements like an alarm/immobilizer.
Policy Terms – Understand covered/excluded uses and actions that could void your insurance coverage.
Payment Schedule – Note due dates and applicable interest charges for missed premium installments.
Accident Reporting – Attend to any police report filing or insurer notifications right away after an incident.
Renewals – Review coverage limits periodically as your needs and vehicle value change over time.

Motor Insurance FAQs

What is required by law?

In Hong Kong, it is compulsory to carry at least HK$100,000,000 third‑party liability insurance for death or bodily injury to other road users under the Motor Vehicles Insurance (Third Party Risks) Ordinance.Policies also include third‑party property damage (TPPD) cover, commonly HK$2,000,000, which can often be increased on request, most frequently to HK$5,000,000 for private cars.

What types of motor insurance are available?

There are three main types: Third‑Party Only (TPO), Third‑Party Fire & Theft (TPFT) and Comprehensive.

Third‑Party Only (TPO)
Covers your legal liability to others (not the driver) for death or bodily injury up to at least HK$100,000,000, plus TPPD usually at HK$2,000,000. Increasing the TPPD limit to HK$5,000,000 or above is often advisable.
Third‑Party Fire & Theft (TPFT)
Provides TPO cover plus protection if your vehicle is damaged by fire or stolen. Premiums are often close to Comprehensive, so TPFT is less common.
Comprehensive
Includes TPO plus loss of or damage to your own vehicle (e.g. collision, fire, theft and many natural perils), plus benefits such as windscreen cover, towing, a short‑term replacement vehicle and limited medical expenses, depending on the policy. Personal belongings left in the vehicle are usually excluded and should be insured under a home contents or valuables policy.

What is the difference between TPO and Comprehensive?

TPO covers only third‑party injury and property damage, while Comprehensive also covers your own vehicle and may include additional benefits such as towing, windscreen and limited medical cover.

Is the driver covered for injury to himself and passengers?

Statutory and standard TPO cover primarily protect third parties and passengers; they normally do not cover the driver’s own injury or loss of income, which should be arranged via personal accident, medical insurance or specific add‑ons where available.

What is a no‑claims discount and how does it affect my premium?

No‑Claims Discount (NCD), or No‑Claims Bonus (NCB), is a discount applied to your premium for each claim‑free year; for private cars it often builds up to about 60%.

Typical NCD scale:

Years claim‑free	Private car	Motorcycle
1	20%	10%
2	30%	20%
3	40%	30%
4	50%	30%
5+	60%	30%

Many insurers will consider overseas claim‑free history if you can provide written proof; acceptance and the awarded percentage remain at the insurer’s discretion.

How does an accident affect my NCD?

At‑fault claims normally reduce your NCD according to a step‑back scale and multiple such claims can reduce it to zero. If another party is fully at fault and your insurer recovers all costs, your NCD is usually restored, though it may be reduced temporarily while liability and recovery are being resolved.

What is a protected NCD?

Protected NCD is an optional benefit that allows you to keep your NCD after one at‑fault claim within specified limits (for example a monetary cap or percentage of sum insured); it typically does not transfer automatically when you move to a new insurer.

Can I transfer my NCD?

Basic NCD can often be transferred between insurers, and some insurers may allow transfers between spouses or between an individual and a company, subject to written proof and approval; NCD from a company policy does not usually belong to a named driver personally.

What is a deductible (excess)?

The excess is the amount you must pay yourself for each claim; more than one excess can apply to a single incident (for example, standard, young‑driver and unnamed‑driver excesses).

Example: A standard excess of HK$10,000, a young‑driver excess of HK$35,000 and an unnamed‑driver excess of HK$10,000 could total HK$55,000 if an unnamed driver under 25 causes an accident. Some insurers allow higher excess options in return for lower premiums, often reducing the premium by around 5–10%, subject to their rules.

Do EVs affect premiums?

Yes. EV premiums are often higher due to higher repair costs, specialised parts, fewer approved repairers and different risk characteristics. Telematics may increasingly allow usage‑based pricing for EVs, reflecting mileage and driving behaviour, with customer consent.

Are modifications covered?

Only modifications that are declared and accepted by the insurer are covered; undeclared or illegal modifications can lead to reduced cover or declined claims.