Parking collisions in Hong Kong: when will car insurance cover the damage?

Before we dig into the details, let’s take a look at some of the types of car insurance options available for Hong Kong drivers.

Third Party Only Insurance

This type of insurance is the minimum coverage required by the Hong Kong government, and it is obligatory insurance for every car owner in Hong Kong. Third party insurance does not cover damage done to your vehicle during an accident, but rather your insurer will cover the liability against a claim by a third party on your behalf. Read more about third party only insurance here.

Comprehensive Insurance

Comprehensive insurance, however, will protect you, your car and third-parties. If you choose the right additional benefits, such as collision coverage, this car insurance will cover damage to a parked car. Learn more about comprehensive car insurance here.

Collision insurance is a coverage that pays out the repair cost of your vehicle if it's damaged in a collision with another car or an object, such as a tree. It protects you when you are at fault, as well as when the damage is someone else's is but they can't be identified (hit and run cases).

According to Hong Kong law, all accidents - i.e. collisions where someone got injured, must be reported to the police. In this situation, follow instructions as if you were in an accident on the road.

In this section, we will talk about collisions: an instance where your car crashed with another vehicle or object, but no one was injured. Below you can find four most common examples of parking collisions and what you can expect from your car insurance in that case:

The driver of the vehicle who damaged your parked car is not identified:

If you noticed a damage to your parked car, and you were not around to witness it, you can still make a claim for that damage. This claim will be paid out under the collision section of your comprehensive insurance policy and most likely will be subject to deductibles.

However, if you have the third party only insurance, no compensation will be paid out to you.

Also, even if you have some sort of comprehensive auto insurance, but you don’t have a specific collision coverage, you may not have any coverage for the damage through your motor policy.

The driver of the vehicle who damaged your parked car is identified:

You may make a claim under the other driver’s third party insurance policy. The other driver’s insurer might require you to fill a police report to document that, and you will have to wait for a payout until the police find the other driver guilty.

You are the perpetrator of the damage to other parties:

In a case where you are at fault, the other driver will make a claim under your third-party coverage, and you may lose your no-claim discounts or good driver discounts for the third party only policy, and your premiums will probably go up at the next renewal.

You are the perpetrator of the damage of your own vehicle:

If you are responsible for your car's damage due to hitting an object, you can still make a claim under your collision insurance.

Be careful, as filling this claim will make you at fault and most likely your premiums will increase during the next renewal time. If the damage is relatively small, it may make more sense to pay for the repairs out of your pocket to save on your insurance premiums next year.

Except for collisions, your parked car can be affected by a number of other threats that can be either unpredictable such as a tree falling onto your parked car, and those that insurers find predictable such as parking your car in a low lying area during a heavy rain, which resulted in your car being flooded. Here you can find a list of other threats that can damage your car while parked:

• Fire;
• Flood;
• Damages resulted in a storm or typhoon such as broken windscreen;
• An unfortunate event such as an object falling onto your car;
• Vandalism;
• Your car being stolen (while this is not exactly a damage, it is definitely a loss). 

Without comprehensive car insurance, should any of these situations happen to your car, you are on your own. However, getting just any comprehensive car insurance doesn't mean you are protected from all these threats. Plans will vary drastically from insurer to insurer, so make sure you understand terms and conditions of your motor insurance. Unfit or unrealistic plans can often lead to claim denials.

It’s important to always check exact terms of the insurance, as we have seen instances where expensive cars were excluded from parking collisions, or other events unless owners deliberately asked for that type of coverage.

Another way insurers can deny your claim is if you parked your car illegally. We recommend talking to an experienced car insurance broker, such as Kwiksure, to make sure you get the coverage you need.

Since you can't control other driver's behaviors or natural disasters, your best protection against damage to your car from this source is to secure comprehensive insurance. Other people and the weather are unpredictable, but your motor insurance premiums don't have to be.

Make sure that you’re always paying the best rate by comparing car insurance prices in Hong Kong with Kwiksure! Contact us if you have any insurance-related questions, and our friendly and experienced team of insurance advisors will be ready to assist you anytime!