Illegal parking and your insurance

While it is nearly impossible to determine the exact number of vehicles illegally parked at any given time in the city, it is clear from the sheer number of delivery trucks and high-end sports cars parked on our streets it would be a fairly high number.

In July, the police set out to try to curb this by having a week long crackdown on illegal parking in the city. According to a short report on the illegal parking crackdown published by the Hong Kong Information Services Department, this crackdown resulted in just over 37,000 tickets being issued. This translates to a little over 220 tickets an hour. This number seems alarmingly high, but does suggest that officials are starting to take this issue seriously.

One downside here, however, is that the fines issued for illegal parking and parking in restricted spaces are usually inconsequential at best. That's because parking tickets in Hong Kong are issued on what's called a 'Fixed-penalty' meaning that for all parking infractions i.e., a vehicle parked on double yellow lines or in a restricted area, are fined HKD 320.

Now there is news that the Government has taken some steps to make these tickets a little more substantial. According to the Hong Kong Free Press, "The government will increase illegal parking fine amounts by 50 percent in 2017." In other words, fines will now be HKD 480. If you or your driver are with the vehicle, however, the fine will jump to HKD 680.   

Like all other road rules in the city, the Transport Department does have in-depth rules around parking and what constitutes legal and illegal parking, the full rules can be viewed here. Generally speaking, the police will usually look at two major factors to determine whether you are illegally parked or not.

The first is the double yellow lines painted on the edge of the road. If you see these, you are not allowed to park your vehicle or even wait in the vehicle at any time. The same goes for the no parking sign without any other notes. If you do see a no parking sign, some will have dates and times under the sign. This means that you are not allowed to park in that area during those times.

The second is what the police refer to as 'restricted zones'. These zones are designated zones along the road that have individual uses and include things like:

• Zig-Zag lines before and after a zebra crossing, and the crossing itself.

• Minibus, bus, and taxi stops.

• Designated lanes like bike lanes and bus lanes.

• In tunnels, unless necessary, this also includes the entrance and exit.

• On expressways, unless necessary e.g., if your car breaks down.

If you are found to be parked in any of these areas the police can ticket you, though historically they have often just given a warning and told the driver to move along. With the recent crackdown, however, this may be changing, with police ticketing without warning.   

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One of the most important reasons the police and Transport Department have instituted the no parking rules and subsequent fines is that they believe that parking in these areas is dangerous, or that there is an increased risk of danger should you park in these areas. With more danger comes an increased chance that you will be in an accident and eventually need to submit a claim.

While we are fairly certain that parking illegally in Hong Kong will not stop overnight, or even in the near future, it is part and parcel of driving in the city regardless of the legality. That said, there are a number of important things you should be aware of regarding illegal parking and your car insurance. Here are four:  

1. Insurers reserve the right to determine whether they will honor a claim - If you are in an accident while illegally parked (e.g., a car runs into you), the insurer reserves the right to determine whether they will cover a claim or not. This will vary depending on the wording of your plan, and whether there is a fine issued by the police or not. If there is, there's a high chance they will not cover your claim.

2. Expensive cars may not be covered at all - With many high-value cars, insurers will ask you where you will be parking your car. Because most people will pick secure lots, there are often clauses included in contracts for high-end cars that will not extend coverage to the car should it be parked in a lot that's not secure. This may also include illegally parked vehicles.

3. There is no clear-cut answer as to whether or not you will be covered if you are illegally parked and then involved in an accident - If you are in an accident, the insurer will usually take all available info into account before deciding whether they will honor a claim. We have seen cases where the insurer did pay out when a car was deemed to be illegally parked because the police did not actually issue a fine. This means that it is up to the insurer to prove the legality here, which can often be hard to do. We aren't saying that this will happen all of the time, but it highlights that this issue will be different for every driver.

4. Most insurance plans have a clause around nature and parking - This may not be the case with all motor insurance policies, but we do know of more than a few insurance policies that state that if you park in, say, a flood-prone area (even legally) during a typhoon, your vehicle may not be covered for damages. Basically, if you knowingly put your car at risk of damage, the insurer may deny claims.

If you are going to be driving in the city, it is important to have a quality car insurance policy. Talk with the experts at Kwiksure today to learn more about your coverage options. 

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