Share Blog：

【Car Insurance 2025】 Third-Party vs. Comprehensive Insurance Comparison | Factors Affecting Premiums | Reasons for Insurance Rejection

Author

Cassidy Wong

Created On

2024-09-10

Edited On

2026-05-20

Text Size

Insurance

As a car owner, car insurance is an essential expense. But how should you choose the right policy? What are the differences between third-party insurance and comprehensive insurance? How do insurance companies determine premiums? This time, Kwiksure will provide a detailed explanation of the coverage of third-party and comprehensive insurance, the factors affecting premiums, and the reasons for insurance rejection, helping you select the right car insurance plan.

Table of contents

What is Third-Party Liability Insurance (TPL)?
Frequently Asked Questions
Car Insurance Comparison | Coverage of Third-Party vs. Comprehensive Insurance
Factors Affecting Premiums
Difficult Car Insurance Cases | Can Car Insurance Be Denied?
Frequently Asked Questions

What is Third-Party Liability Insurance (TPL)?

According to Section 4 of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap. 272), all car owners must purchase third-party insurance (TPL). This coverage includes "third-party injury or death liability" and "third-party property damage", protecting the policyholder from legal liabilities in the event of an accident causing injury or death to third parties. The minimum statutory coverage amount is HKD 100 million.

比較全港逾60間保險公司報價，快而保汽車保險中介為你挑選最符合你要求的車保，立即報價！

Frequently Asked Questions

What are the differences between third-party insurance and comprehensive insurance?

Third-Party Liability Insurance (TPL) covers the policyholder’s legal liability for injury or death to third parties resulting from an accident.
Comprehensive Insurance (Full Coverage)includes all the coverage of TPL while also providing compensation for damage to the policyholder’s own vehicle.

Car Insurance Comparison | Coverage of Third-Party vs. Comprehensive Insurance

Since third-party insurance only covers injury, death, or property damage to third parties, car owners must bear the full cost of vehicle repairs if they are involved in an accident. As a result, many car owners opt for comprehensive insurance, which offers broader protection, including coverage for their own vehicle.

	Third-Party Liability Insurance (TPL)	Comprehensive Insurance (Full Coverage)
Basic Coverage
Vehicle damage, fire, and theft	X	✓
Third-party injury/death & property damage	✓	✓
Additional Coverage
Personal accident & medical expenses for driver	X	✓
Choice of repair center	X	✓
No Claim Discount (NCD)	X	✓
Windshield coverage	X	✓
Third-party legal assistance	X	✓
"New-for-old" vehicle replacement	X	✓
Temporary replacement car service	Free referral service	✓
24-hour emergency roadside assistance	X	✓
24-hour towing service	X	✓

Factors Affecting Premiums

【汽車保險2024】三保與全保比較｜影響保費因素 | 車保拒保原因

1. Driver’s Age & Driving Experience

Young or inexperienced drivers are considered higher risk due to a greater likelihood of accidents. As a result, insurers charge higher premiums and may impose deductibles.

2. Vehicle Age

Older vehicles are generally less reliable and involve higher risk. Insurers typically add surcharges for vehicles over 10 years old.

3. Vehicle Market Value

For comprehensive insurance, compensation is based on the car’s market value. Higher-value cars increase insurer liability, leading to higher premiums. Luxury sports cars or vehicles requiring imported parts tend to have more expensive insurance.

4. Vehicle Performance

High-performance cars with greater engine power and speed pose a higher accident risk, making third-party insurance more expensive.

5. Driver’s Occupation

Certain professions, such as construction workers, frequently drive into high-risk areas like construction sites, leading to higher premiums or policy conditions compared to office workers.

6. Deductibles

A deductible is the amount the policyholder must pay before the insurer covers the remaining claim. Policies with higher deductibles generally have lower premiums.

7. Claims History & No Claim Discount (NCD)

Insurers review a driver’s claims and traffic violation history when determining premiums. A clean record leads to lower premiums.

The No Claim Discount (NCD) rewards drivers who make no claims during the policy period with a progressive premium discount:

Policy Year	NCD Discount
1st Year	0%
2nd Year	20% (80% of premium)
3rd Year	30% (70% of premium)
4th Year	40% (60% of premium)
5th Year	50% (50% of premium)
6th Year	60% (40% of premium)

Difficult Car Insurance Cases | Can Car Insurance Be Denied?

Insurance companies assess each driver's individual circumstances when determining coverage and premiums. If an applicant has a poor driving record or multiple claims history, they may be denied coverage. Some insurers also reject young drivers or those with less than two years of driving experience to minimize risks. In such cases, even if coverage is granted, the policyholder may face extremely high premiums and deductibles.

If a driver has been previously denied coverage or had their policy canceled, it may be difficult to find another insurer. To avoid this, drivers should maintain a clean driving record by staying alert and avoiding accidents.

For young P-plate drivers, a good strategy is to start with third-party insurance and switch to comprehensive coverage after holding a full license for two years to save on premiums. Alternatively, they can be added as a named driver under a more experienced driver's policy (e.g., parents) to reduce costs.

Frequently Asked Questions

How to Choose the Right Car Insurance?

Besides considering premium costs, policyholders should compare coverage options and exclusions to find a plan that best suits their needs.

Request quotes from different providers and compare them to find the best value-for-money plan.
Consult a reputable car insurance broker for free insurance quotes and expert advice.

Follow us and be among the first to know!

Contact Kwiksure to get motor insurance quotes

Kwiksure has over 20 years of experience in the car insurance industry, comparing quotes from over 60 insurers in Hong Kong. Use our online quotation tool now to get a free car insurance quote!

The above information is for reference only. Kwiksure takes no responsibility for the accuracy and timeliness of the information. For the coverage, mode of compensation, benefit limit and premium levels of any specific insurance plan, please refer to the relevant policy terms.

Author

Cassidy Wong

Cassidy is a content creator at Kwiksure. She mainly writes about cars and travel. She has previously worked in advertising creation and online media editing. She loves writing and is keen on discovering the latest topics. She is committed to bringing fresh, interesting and practical information to readers.

【行車證到期】2025全新行車證特點｜各類車輛牌費價錢｜續牌文件及三大方法（連電動車牌費計數機）

Car

2025-06-28

[Vehicle License Renewal] Features of New Vehicle Licenses 2025| License Fees for Different Types of Vehicles | Renewal Documents and Three Main Methods (Including EV License Fee Calculator)

The Hong Kong government requires all vehicles to hold a valid vehicle license (commonly known as a 'driving permit') to operate on public roads. How much does it cost to renew the licenses for private cars, vans, and motorcycles? Are there differences in calculating the license fees for electric vehicles? What are the procedures and required documents for renewing the licenses of new and used vehicles? How long is a vehicle license valid for? What should you do if it expires? Kwiksure is here to answer all these questions.

Car

2025-12-22

Hong Kong Traffic Offence Points: License Suspension & 30 Speed Camera Hotspots

The Driving Offence Points System has been implemented in Hong Kong for over 40 years. Simply put, certain traffic offenses incur penalty points. When a driver commits a traffic offense and is convicted by a court, or is required to pay a fixed penalty, they will receive deduction points. But how many points lead to a license suspension, what are the common deduction offenses, and what happens if a P-plate driver gets points? This time, Kwiksure will provide a detailed explanation of the driving offense points system, along with popular speed camera spots across Hong Kong, helping everyone become a safer driver. Kwiksure has over 25 years of experience specializing in motor insurance , comparing over 60 insurance companies to offer extremely low premiums for both Comprehensive and Third-Party insurance.

Car

2024-11-11

10 Dash Cam Recommendations for 2024 plus Installation Tips

For drivers, besides car insurance, a device commonly called a dash cam is essential to ensure the safety of themselves and passengers. For starters, in a traffic accident, the video footage can provide evidence of who caused the accident. Secondly, if there are unruly passengers, the dash cam footage can serve as evidence to protect drivers from false accusations. However, with so many dash cams on the market, how should one choose a suitable dash cam? This Kwiksure article summarizes the Consumer Council's testing criteria and recommends 10 dash cams, clarifying the characteristics of different types.

2024持續進修基金學車好唔好？5間駕駛課程費用比較及評價｜李健、駕院、貨櫃業職工總會

Car

2024-03-19

Learning to Drive with Continuing Education Fund (CEF) 2025

The government's Continuing Education Fund (CEF) has recently increased its subsidy to HK$25,000, and covers driving courses from the Hong Kong School of Motoring, Lee Kin Driving School, and the Container Transportation Employee General Union. After deducting the subsidy amount, learners only need to pay around HK$5,000 to HK$6,000. In this article, Kwiksure compares the course content, number of lessons, graduation requirements, and fees of these three schools. We’ll also explain the application process for the Continuing Education Fund and provide a brief introduction to the driving courses of two non-CEF schools, A1 Driving School and Hung Chun Driving School, for your reference.

Car

2025-12-11

The Ultimate Guide to Handing Car Crashes in Hong Kong 2025 (With Settlement Agreement Template)

With so many easily agitated drivers and narrow lanes, it’s little wonder road accidents happen quite often in Hong Kong. Every driver, experienced or not, should learn how to handle an accident as part of their training. If you don’t want to be hastily looking up information right when you need it, you should learn how to respond to a road accident now. Otherwise, if you take the wrong steps, not only can your motor insurer reject your claim application, you could even end up in legal hot water! There are a myriad of different opinions on what are the proper steps for handling a road accident. Different drivers will give different answers to questions such as "Can the parties simply settle the matter themselves?", "Do I have to notify my insurer within 24 hours?", or "Will I be denied compensation if I said sorry?". Today, the experts at Kwiksure will explain the right steps to take after a road accident, and point out some of the most common fallacies.

Car

2023-11-27

[Hybrid Car Recommendation 2025] Comparison of 17 Hong Kong Hybrid Cars | Models, Prices, Selling Points | Pros/Cons Analysis

With the innovation of automobile technology, in addition to the popular Electric Vehicles . In addition, it combines the power of the engine and the electric motor, and is sold as fuel-saving. Hybrid vehicles have also attracted much attention in Hong Kong. In this article, Kwiksure will explain the different types of hybrid vehicles and analyze their advantages and disadvantages, and recommend 17 hybrid vehicles for your reference. Kwiksure has over 25 years of experience in car insurance , comparing over 60 insurance companies and offering ultra-low full coverage and triple coverage premiums.