Purchasing car insurance is not a one-time task; renewing your car insurance is an annual duty for all car owners. So, what should you handle and pay attention to when renewing?
This time, Kwiksure has compiled car insurance renewal preparation steps, factors affecting premiums, and other useful information. Before renewing, car owners should take the opportunity to review existing policy coverage and pricing, reassess their needs, and consider whether to purchase more advantageous plans.
According to Hong Kong law, all vehicles driving on roads must hold valid third-party liability insurance. Violators can be fined up to HKD 10,000 and imprisoned for up to 12 months, and may have their driving license suspended for 12 to 36 months. Therefore, all car owners must successfully renew their insurance before the policy expires to avoid breaking the law by driving uninsured.
Generally, car insurance is valid for one year. Insurance companies usually send renewal notices to policyholders about one month before the policy expires via mail, email, or SMS. Upon receiving the notice, the policyholder should carefully review the contents, such as any changes in premium or coverage, to decide whether to renew or switch to another insurance plan.
If you decide to switch to another insurance company, we also recommend that you keep the renewal notice carefully, as it contains your No Claim Discount (NCD), which will be useful as proof when purchasing insurance in the future.
Additionally, if you are unsure of your policy expiry date or suspect your policy is about to expire but have not received a notice, you should contact your insurance company or broker for inquiry.
If you want to compare coverage and premiums from other insurers, you can do so through brokers, insurance company websites, or third-party comparison platforms. You can also contact the Kwiksure professional team for advice and car insurance quotations.
Kwiksure is one of the largest insurance brokers in Asia, with over 20 years of experience in car insurance. It collaborates with over 60 top insurance companies, offering a wide and flexible range of coverage to select the most favorable plans according to your budget and needs. Whether it is third-party, comprehensive, or complex insurance, Kwiksure’s professional team can provide you with the ideal insurance solution.
If you decide to continue with your existing policy, you only need to renew and pay the premium. If you intend to switch to another insurance plan, you need to prepare the following documents for application:
Insurance companies update premiums based on your claims history and traffic violations. If you made a claim in the previous insurance year, you may face a premium loading (extra charge) upon renewal. Even without claims, insurers may adjust premiums and terms based on loss ratios and market conditions.
Therefore, before agreeing to renew, inquire with your broker or insurer about changes in premiums and coverage and the reasons behind them. If you had accidents and claims, consider whether renewal premiums are significantly higher than new plans available elsewhere.
Policyholders can purchase additional coverage, such as extended protection in Guangdong Province or adding named drivers, which will increase premiums. If you do not need these extras, adjust accordingly during renewal. Also, review whether your current comprehensive coverage can be lowered to save unnecessary premium expenses.
Deductible is the amount the insured must pay out-of-pocket when making a claim. After deducting the deductible, the insurer pays the remaining amount according to the policy coverage and terms. Deductible amounts vary by insurer. You can compare deductible amounts and related terms when renewing.
Car insurance usually has a reward mechanism: if the policyholder makes no claims during the insurance year, they can receive a No Claim Discount (NCD) on renewal. Even if switching insurers, as long as you purchase a new policy within 12 months of your old policy’s expiry or cancellation and provide proof, you can transfer your NCD to the new insurer.
| Years | No Claim Discount |
| 1st year, no claims | 20% = pay 80% |
| 2 consecutive years, no claims | 30% = pay 70% |
| 3 consecutive years, no claims | 40% = pay 60% |
| 4 consecutive years, no claims | 50% = pay 50% |
| 5 or more consecutive years, no claims | 60% = pay 40% |
NCD increases annually starting from 20% up to a maximum of 60%. If you have a certain NCD but make a claim during the policy period, your next renewal will reduce your NCD by 30% under the “discount reduction mechanism.” You should read your insurer’s NCD terms carefully to ensure you receive the proper discount.
If you renew with your original insurer, you will generally receive the official policy and certificate within about 4 weeks of the policy effective date.
If you switch to another insurer, your broker or insurer will issue a temporary cover note valid for 30 days within a few days after purchase, allowing you to complete vehicle licensing and related procedures. Once all required documents are submitted, the insurer will issue the official policy and certificate within about 4 weeks.
According to Hong Kong law, all vehicles driving on roads must hold valid third-party liability insurance. Violators can be fined up to HKD 10,000 and imprisoned for up to 12 months, and may have their driving license suspended for 12 to 36 months.
Policyholders usually receive a renewal notice about one month before the policy expires, at which time they can choose to renew with the original insurer or switch to a new insurer.
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.
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.
Subscribe Now
