Car Insurance Types and Claims Tips (Hong Kong Edition)

*—Editor’s personal experience× The most detailed ground-level strategy—

Hello everyone, I'm your car owner editor! 👨💻! When buying a car in Hong Kong, insurance is absolutely essential—whether it's new or used, private or commercial, it's not only a legal requirement but also your only lifeline in the event of an accident . However, the Hong Kong insurance market is so diverse and the claims terms so detailed that many car owners simply "buy it for the heck of it," only to end up footing the bill when something goes wrong!

Over the years, I've witnessed countless car insurance claims experiences from friends and online friends—some due to a desire for value, while others face numerous pitfalls during their claims process. Today, I'll take a detailed, exhaustive look at various types of car insurance in Hong Kong, key points for filing a claim, common misconceptions, and my own hands-on tips. Read on for the full story!

---

1. Main types of car insurance in Hong Kong

1.1 Statutory Liability Insurance (Third Party Only, TPO)

Features

• Legally mandatory requirement : According to the Motor Vehicle Insurance (Third Party Risks) Regulations, all vehicles in motion must purchase this insurance .
• Only third parties (i.e. victims) are protected , including:
  • Personal injuries
  • Property damage (such as damage to other people's vehicles or buildings)

advantage

• The premiums are cheap and suitable for old cars, affordable cars, and those who rarely drive.
• Legal compliance, the most basic "pass" purpose.

shortcoming

• There is no coverage for losses suffered by you and the driver/passengers (including vehicle repair costs, medical expenses, vehicle theft, fire, etc.).
• After an accident, you only have to compensate the other party, and you have to pay for your own losses out of your own pocket.

Editor's experience

• A friend once drove an old car and only bought third-party vehicles. As a result, it was smashed while parking on the street. He had no claim and had to find a repair shop on his own.

---

1.2 Third Party, Fire and Theft (TPFT)

Features

• On the basis of "Third Party Insurance", additional protection is provided :
  • Fire damage
  • Loss from theft

advantage

• Suitable for owners with medium value and a lot of outdoor parking.
• On par with full insurance, it provides more coverage than basic TPO.

shortcoming

• There is still no compensation for vehicle collision/self-damage .
• There must be clear evidence of fire or theft (alarm records, on-site photos).

Editor's observation

• I sometimes help friends and family think about insurance. If your car isn't new but you're worried about it being stolen or dismantled in a car park, you might consider TPFT.

---

1.3 Comprehensive

Features

• The most comprehensive protection , including:
  • Third-party personal injury/property damage
  • Your own vehicle is damaged (regardless of whether it is your fault or the other party's fault)
  • Fire, theft
  • Acts of God, sometimes including broken glass, natural disasters
  • Generally covers towing, emergency support, etc.
• Optional coverage can be added (such as contents protection, driver accident protection, no-claim discount protection, etc.)

advantage

• New car, luxury car, frequently driven, family car highly recommended
• "Compensation for a car accident" and "Insurance even if you're not careful" are the best options

shortcoming

• Premiums are higher, especially for novice drivers, young drivers, and performance cars
• There is an excess (deductible), which means you have to pay the first few thousand dollars for each claim

The editor personally shares

• When buying a new car, always choose comprehensive insurance. I've had my car dented by someone reversing into it, and the insurance company covered the repairs, which saved me a lot of money.
• There were some minor floods, but the insurance company paid for them, so there was no need to worry about sudden weather events.

---

2. Common Additional Benefits (Optional Riders/Extensions)

---

3. Claims Process and Precautions

3.1 Immediate steps to handle an incident (from the editor’s own experience)

1. Ensure safety : stop the car, turn off the engine, turn on the double yellow lights, and protect the scene.
2. Call the police immediately : All traffic accidents must be reported to the police, otherwise the insurance company has the right to refuse compensation!
3. Take photos/record videos : record the scene, injured persons, vehicle damage, license plates, and road conditions.
4. Exchange information : Copy down the other party’s name, contact information, license plate number, and insurance company.
5. Notify the insurance company : Report the incident within 24 hours, otherwise you may lose your claim rights.
6. Prepare documents : police report, police report, repair quotation, medical report (if any), photos.
7. Follow up on the claim progress : You can check the damage assessment, repair progress, and compensation amount.

Editor's Tips

• Don't settle privately! Some drivers may ask for money to settle the matter, but if they file a claim against your insurance later, you may lose your coverage.
• Don't run away : running away is illegal and insurance will not cover it.

---

3.2 Common claims misunderstandings and traps

---

4. Claims Review and Repair (Editor's Personal Experience)

• Assessing the damage : The insurance company will usually send a surveyor to a designated garage for assessment.
• Repair quotation : Sometimes it is recommended to use aftermarket/second-hand parts, and you need to communicate with the garage yourself.
• Compensation method : Usually paid directly to the repair shop, some compensation can be paid in cash (repair required by yourself).
• Compensation time limit : Generally, simple cases can be completed in 2-4 weeks, while complex cases may take longer.

Editor's suggestion

• Selection of a repair shop : Try to choose a shop approved/cooperated by the insurance company, as the process is fast and the guarantee is sufficient.
• Keep all receipts : including towing and temporary transportation expenses, some insurance policies can apply for subsidies.

---

5. Premium Calculation Factors and Money-Saving Tips

Money-saving tips

• Save NCB (No Claim Discount) to reduce premiums in the long run.
• Compare multiple quotes online, through insurance brokers, or by checking directly with insurance companies.
• Consider increasing your deductible . If you want to drive with confidence, you can choose a high deductible and your premium will be flat immediately.
• Joint policies (couple/family car) can sometimes reduce premiums.
• Be smart when purchasing additional protection and avoid being overwhelmed with unnecessary terms and conditions.

---

6. Editor's summary: "Buy the right insurance, insure it clearly, and you'll be guaranteed a claim!"

Buying car insurance in Hong Kong isn't just about getting by; it's about protecting yourself, your family, and your finances . Choosing a plan based on your specific needs, vehicle price, and driving habits isn't about choosing the right one. The claims process should be clear, on-site processing should be swift, and all necessary documentation should be complete. Don't be afraid to worry, or you could end up losing money in a matter of minutes!
The editor recommends: It is better to buy enough and buy the right things, don’t be greedy, and don’t be afraid to ask clearly.
If you've encountered car insurance claim challenges or have any smart money-saving tips, please leave a comment and share them with us! 🚗🛡️