If you think that a car insurance is an option in Hong Kong, you are mistaken. The Motor Insurer’s Bureau of Hong Kong stated that it is illegal for you to use any type of vehicle without getting an insurance coverage.
This is in accordance with the Motor Vehicle Insurance (Third Party Risks) Ordinance. It is actually a practice all over the world to help drivers and passengers get claims in the event of an accident.
No matter how careful or skilled you are in driving, you are still vulnerable when you are on the road. It is not always your mistake. Sometimes, it takes one irresponsible driver to involve multiple cars in an accident. The Transport Department revealed that there were a total of 16,170 accidents in Hong Kong in 2015.
That means one or two accidents happen every hour. The highest road traffic accidents happened in New Territories while the highest fatalities happened in Kowloon.
Since accidents are unexpected events, you want to make sure that you can get a claim if you are involved. It will not only help you feel secure but will also allow you to get the finances that can repair your car – or even pay for any medical expenses that you may need. There are also car insurance policies that can even cover your passengers.
Different motor insurance types in Hong Kong
If you are in the market for a good motor insurance, it is best to know your options. There are 4 main car insurance options in Hong Kong:
Of all the policies you can get, this is the one with the least coverage. It is also the most basic that you can get to comply with the ordinance of the government. It will help you drive legally in Hong Kong but will not really allow you to obtain a significant claim after an injury or a third-party death caused by a road accident.
Third Party Liabilities Only
This offers more coverage than the former. It allows you to get claims after a third party property is lost or damaged. It also allows you to claim something in case of injuries or death of a third party. If there are legal fees, you can also expect to get some claims.
Third Party, Fire, and Theft
This will give you coverage for any loss or damage to your vehicle. This is useful in the event of an accident or a fire or theft-related incident. The policy also includes everything that the Third Party Liabilities Only offer. In case you need to tow your vehicle, some insurance companies will include this as well in the coverage. It is the complete car insurance policy that you can get. The coverage of this insurance includes all three policies and more. You can also add accidental losses and damages to your own vehicle, even if they were not caused by theft or a third party.
You can choose among these three to be able to drive legally in Hong Kong. The more coverage you have on your car insurance, the higher the monthly premium you have to pay.
Important facts about car insurance coverages
Before you arrive at a final decision, there are a couple of things that you first need to understand.
Your premiums are calculated based on your personal data and history of driving.
The type of policy that you will use will also come into play. As mentioned, the more coverage you have, the higher the monthly payments you will make. Most car insurers will also consider the type of vehicle that you drive.
If it is an old or a new model, that can also affect your premiums. Even past driving records will be taken into consideration. All of these will help calculate your risk as a driver. Make sure you are honest about the information you provide.
Do not withhold information even if it means you will pay more for your coverage.
This might backfire you when you are trying to file a claim.
You can lower your premiums by making your own car secure.
If you can show proof that your car is safe in your parking space and you have installed security cameras around it, you will be able to lower your premiums. Security devices like alarms can also help. Anything that will reduce the risk of your car being stolen will help lower your payments.
The insurer will not spend for everything.
Take note that the claims you will receive will not be completely covered by the insurer. There is something called “Excess” which refers to the amount that has to come out of your own pocket. It is a certain percentage of expenses that you need to pay for.
This is done to give car owners a sense of responsibility and accountability. It is meant to encourage you to be careful when driving. In case you want a lower premium, you would have to pay more excess.
Take your time in choosing the insurer.
First and foremost, the insurer should be a member of the Motor Insurer’s Bureau of Hong Kong. Compare the rates of different companies so you can be assured that you are getting the best deal on the market.
It is important for you to read the fine print of your car insurance policy.
There may be clauses there that will hinder you from making claims in the future. Not only that, there may be mistakes that you should avoid because it might compromise some of your claims. If there is something that you do not understand, ask the insurer. It is their responsibility to inform you of what the car insurance can give you.
Are you interested to know more about car insurances in Singapore? Read Car Insurance in Singapore – All You Need to Know About.Recommend0 recommendationsPublished in Car, Hong Kong