[Daily Knowledge] How to choose car insurance?
The selection of car insurance in Hong Kong involves many factors, including regulatory requirements, personal needs, budget and coverage . The following is a detailed guide to help you choose the right car insurance:
1. Basic insurance that must be purchased: third party liability insurance
- Legal requirements : According to the Motor Insurance (Third Party Risks) Regulations, all car owners must purchase third party liability insurance .
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Coverage :
- Protect against personal injury and property damage to third parties (i.e. others).
- It does not cover damage to yourself or your vehicle .
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Minimum coverage :
- Personal injury: at least HK$100 million.
- Property loss: at least HK$2 million.
2. Types of insurance purchased voluntarily
2.1Comprehensive Insurance
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The most comprehensive coverage , including:
- Third Party Liability
- Your vehicle is damaged/stolen
- Fire
- Glass damage
- Other additional benefits (such as flooding, natural disasters, personal accident medical treatment, etc.)
- Suitable for new cars, higher value cars , or car owners who want more protection.
2.2 Third Party, Fire and Theft Insurance
- In addition to third-party liability, it also protects against fire and theft losses .
- The premium is lower than comprehensive insurance, but more expensive than simple third-party liability insurance.
3. What should I pay attention to when purchasing?
3.1 Choose the right insurance according to your own situation
- New cars/luxury cars : It is recommended to choose comprehensive insurance.
- Old cars/vehicles with low market value : Consider purchasing only third-party liability insurance or adding fire and theft clauses.
3.2 Compare quotes and terms from multiple insurance companies
- Coverage : Different companies have different coverages for the same insurance type (e.g. deductibles, glass coverage, free towing, etc.).
- Premium and deductible : The premium is directly related to the excess you bear. Choosing a higher deductible can reduce the premium, but you will have to pay more out of your pocket when something goes wrong.
- Additional protection : such as parking damage, property in the car, driver's personal accident, 24-hour roadside assistance, etc.
3.3 Claims Record and Driving Experience
- Whether or not you have a past claim record and your driving experience will affect your premium.
- Some companies offer a "No Claim Discount (NCD)", which provides a premium discount if you do not make claims for consecutive periods of time.
3.4 Choose a reliable insurance company or agent
- You can compare online insurance platforms (such as CompareFirst, MoneyHero, etc.) or check with the insurance company directly.
4. Frequently Asked Questions
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Do I need to buy insurance when renting or sharing a car?
- Yes, all road-going vehicles must have valid third party insurance.
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Can I buy temporary insurance?
- Some companies offer short-term insurance, which is suitable for temporary use.
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Does driver age affect insurance premiums?
- Age, driving experience, and vehicle model will all affect the quote.
5. Suggestions on purchasing steps
- Confirm which type you need (third party/full insurance/fire and theft)
- Compare quotes and coverage details from multiple companies
- Understand deductibles, additional benefits and claims process
- Check if there is a No Claim Discount (NCD)
- Determine the company's reputation and service quality, and check online reviews if necessary
- When applying for insurance, please prepare your vehicle registration, driver's license, past insurance documents, etc.
6. Common popular insurance companies in Hong Kong
- AXA
- Zurich
- AIG
- Prudential
- Blue Cross
- BOC Insurance
- Hang Seng Insurance
Summarize
Hong Kong law requires third party liability insurance. If you want higher protection, you can consider full insurance. When purchasing, you should compare the coverage, premiums, deductibles and the reputation of the insurance company. It is recommended to make more comparisons and choose the right product according to your vehicle condition and driving habits.
