Finding the best third party car insurance in Hong Kong

Before looking into how to secure the best plan for you and your vehicle, it is important to first define what third party car insurance is. These insurance plans are designed to provide cover for you and you vehicle in the event of a claim submitted by a third party (not you) for damages done.

To be clear here, third party insurance does not usually cover damage done to your vehicle during an accident. For example, if you crash into another driver, this type of plan will only cover the damage done to the other vehicle or driver. Any repairs your vehicle might need will not be covered by your plan.

It is also important to note here that the Hong Kong government requires that all drivers secure car insurance before being legally allowed to drive in the city. By law, third party car insurance is the minimum level of coverage you must secure.

The Hong Kong government has stated that all car insurance plans sold in Hong Kong must provide a minimum level of third party coverage. All policies sold in Hong Kong must cover HKD 100,000,000 for any single event resulting in death or bodily injury of a third party.

The best third party car insurance plans in Hong Kong will also provide at least HKD 2,000,000 towards the damage of another person's (or business's) property.

If you are looking at plans that do not offer this level of coverage, especially in relation to death and injury, then the plan should be avoided as you could be fined by the police for not having adequate coverage should you be in an accident.  

Insurers who produce car insurance plans in Hong Kong will often create two different levels of third party coverage that drivers can select from:

• Third party only - These plans are your stock standard plans that only provide the legally required level of coverage along with coverage of damage done to property. They are typically the most affordable plans available.

• Third party fire and theft - Offers the same coverage elements as above, but will also deem your vehicle as property which allows the plan to include coverage for any damage done to your vehicle due to fire, theft, or other acts of nature. Due to the increased levels of coverage and risk, these plans tend to cost a bit more than the above.

As a general rule of thumb, all third party car insurance plans in Hong Kong will not cover any damage done to you or your vehicle in an accident. These plans will also not cover certain extras that some drivers might like including:

• Towing

• Roadside assistance

• Broken components e.g., windshields or windows caused by debris or negligence

• Broken/worn-out parts e.g., tires or any other moving parts in the vehicle.  

Arguably, the most useful policy benefit not included in these type of plans is the NCD, or No Claims Discount. If you drive for a year without an error (ticket) or claim submitted, insurers in Hong Kong will apply a graduated discount, starting at 20% after the first year on your car insurance premium. The discount goes as high as 60%, which can result in a hefty reduction of your car insurance premium should you drive safely for multiple years.

One would think that because there are legally required levels of coverage then all third party insurance solutions should cost the same. The fact of the matter is, they don't. You will find that insurers in the city will have varying rates for their plans.

Because of this, it is a good idea to talk with the different insurers and see what plans they are offering and at what prices. But this can take time, so one idea to help you find the best plan is to:

As an insurance broker, we work with all of the best insurers in the city and are able to quickly review all of the different options and premiums available. From there we can identify a plan that meets your coverage needs, and help you to manage it, all at no extra cost to you.  

If you are looking for the best third party car insurance in Hong Kong, talk with our team of expert advisors today.