There’s no hard and fast rule that X is always covered and Y is always excluded. When it comes to knowing what will be covered, you should always consult your car insurance policy documents. If you haven’t bought a car insurance plan yet, having the help of a broker to run through the coverage and exclusions can help.
For the most part, here’s what you should keep an eye out for in your policy to ensure that you’re aware of whether you’re covered for such things should they happen:
Natural calamity or “Acts of God”
Any natural disaster or event that cannot be foreseen or prevented is what’s meant by the term "Acts of God". In Hong Kong, we’re annually subjected to typhoons and other severe weather events that can often cause flooding and strong winds that frequently cause damage to property, including vehicles. Just last year, the first No. 10 signal Typhoon Hato in over 70 years wreaked havoc across the territory and caused billions in damages.
Third party insurance policies often won’t cover damage caused by natural events, but comprehensive plans can. What can be tricky is around what types of events may or may not be excluded. Reading your policy document should help clarify whether or not specific causes, such as floods, fires, lightning, or damage from strong winds is covered.
Vandalism and theft
Again, like natural calamities, whether or not your car insurance policy is likely to cover things like vandalism and theft will largely depend on your policy type. Comprehensive policies offer a lot more protection when it comes to damage to your vehicle when you’re not even behind the wheel. Third party insurance policies are still likely to exclude such events, unless you have a Third Party Fire & Theft policy.
What’s also important to remember is that sometimes seemingly minor damage, such as a broken wing mirror, might cost more when you make a claim (either via the excess or by negating your No Claims Discount) than it would be if you paid for it yourself.
Damage from self repairs
The main reason why insurance companies in any industry opt for approved service providers is so they can assure a certain level of services to be provided for the money they payout for claims. Whether it’s an approved health clinic or auto repair shop, having these arrangements also allows insurance companies to hold someone accountable where their services cause more damage.
It would be advisable to not only check your policy wording before carrying out your own vehicle repairs or maintenance, but to also check with your insurance company. It might be that any repairs you undertake yourself, or maintenance you carry out beyond the standard changing of oil might either negate claims for parts you interfere with, or your policy as a whole.
