What If Your Vehicle Is Stolen and Models Most at Risk

Both "third-party fire and theft insurance" and "comprehensive car insurance" provide coverage for car theft, but “third-party car insurance” alone does not provide such coverage.

Regardless of the type of car insurance you purchase, when you sign on the policy, you will receive a Certificate of Insurance that confirms the coverage you are entitled to under specific conditions.

One of the clauses will state "the person or classes of persons authorized to drive the insured vehicle" and list the categories of individuals authorized to drive the insured vehicle (including the policyholder and individuals authorized by the policyholder to borrow the vehicle). Any person not in one of the designated categories (e.g. car thieves) will be considered by the insurer as driving the insured vehicle without authorization.

Therefore, if a stolen vehicle is involved in an accident, since car thieves are not considered "authorized" drivers of the vehicle, the insurer will not compensate for any damages or losses resulting from the accident.

According to Hong Kong Police Force, there have been 546 cases of car theft during the first nine months of 2022 - an increase of 154 cases (39.3%) compared to 392 cases in the same period last year. Over the past ten years, there have been 400-600 cases per year on average.

(Chart for 2013-2022 Hong Kong Vehicle Theft Statistics)

Source: The Hong Kong Police

In terms of models and brands, hybrid cars and Japanese seven-seaters are typically at higher risk. Criminal groups steal cars with the intention of dismantling them for resale of parts or using them with fake license plates for other criminal activities. Hybrid cars have valuable catalytic converters containing precious metals, making them in demand in the second-hand market. As for Japanese seven-seaters, they are commonly seen on the roads, have a low-profile design, and may be used for activities such as smuggling or transporting stolen goods.

1. Park in a secure parking lot

Car thieves often target secluded streets or low-security parking lots during the late hours of the night. They can typically break into a car and steal it within minutes, then take it to a prearranged location or warehouse to dismantle for parts. To reduce the risk of theft, it is crucial to avoid parking your private car overnight on secluded streets. It is recommended to park in a secure parking lot with security personnel and CCTV surveillance.

2. Install an auto-upload car camera

You can also install a reliable anti-theft system to your vehicle, especially a video camera that uploads footage to the cloud.

3. Lock the doors before leaving your car

In order to make the most of the available space, some parking lot operators will ask the driver for the car key so that they can move the car. Some thieves will pretend to be the vehicle owner, cheat the parking lot staff for the car key, and then drive the car away. Likewise, they may approach a car with its key inserted or a car with doors unlocked. So, it is best to park in a high-security parking lot or garage and ensure that the car is locked when you leave your car so that criminals will have no chance at it.

4. Avoid leaving valuables behind

It's common knowledge that not placing your belongings in plain sight can reduce the risk of your vehicle becoming a target for thieves.

1. Lock the wheel

Locking the wheel can increase the time required for the thief to steal your vehicle because even if the thief succeeds in breaking the ignition switch, he has to unlock the wheel to push the motorcycle away. Thieves always look for easy targets, and a wheel lock will add an extra layer of protection to your motorcycle.

2. Cover your vehicle

A motorcycle cover prevents thieves from knowing the type and model of your motorcycle at a glance, so that they can't tell whether your motorcycle is an expensive model. Moreover, a cover protects your vehicle from sunlight and rain. But do not cover your vehicle when there is a typhoon, otherwise, the cover can work like a parachute and make your motorcycle fall over!

3. Use motorcycle cover locks

It is recommended that you use vehicle cover locks at both the front and rear of your motorcycle, because even motorcycle covers can be the target of thieves.

4. Use anti-theft items

Truly determined criminals may simply lift the motorcycle by themselves to the connecting vehicle and transport it away. In that scenario, all three anti-theft measures mentioned above will fail. In view of this, we recommend that you use disc brake locks to make it even more difficult for thieves to push away your motorcycle. Some disc brake locks are further equipped with an alarm device. If the lock senses vibrations, the alarm will keep beeping. As for the GPS anti-theft systems, they can help you determine the whereabouts of your motorcycle if it is stolen.

Tip: When buying a used car, verify the source of the car before taking delivery, so as to avoid buying a stolen car!

Generally speaking, comprehensive car insurance already covers losses caused by vehicle theft. You may also consider adding fire insurance and theft insurance to third-party motor insurance. Be sure to pay attention to the amount of the deductible in case of car theft.

Once a vehicle is confirmed stolen and cannot be recovered, the insurer will appoint an assessor to determine the value of the vehicle, then deduct the applicable deductibles (including but not limited to the theft deductible) to arrive at the final amount of compensation. The entire process typically takes 4-6 weeks.

All personal belongings and equipment that are not original in the stolen vehicle will not be covered, unless they were specified and approved by the insurer at the time of application for coverage (such as premium stereos).

In Hong Kong, the No Claim Discount (NCD) is attached to people and not vehicles, so even if a car is stolen and cannot be found, the owner can still transfer the NCD of the old car to a new car. If the owner secured comprehensive motor insurance and claims compensation for the stolen vehicle, the NCD will be deducted by 30% (e.g. from 50% NCD to 20% NCD). On the other hand, if you secured a third-party motor policy and your vehicle is stolen, the NCD can be fully transferred to any other vehicle under your name because there would be no claims.

After an insurer has paid compensation for a stolen vehicle, if the original owner subsequently recovers the vehicle (for example, the police returns the car to the owner after the case is resolved), he must immediately notify the insurer since it is already stipulated in the policy document that the property insured now belongs to the insurer.

Car theft rates are not high in Hong Kong compared to many other cities, but that doesn’t mean you won’t feel very frustrated if your private car or motorcycle is stolen. What are the actual car theft figures in Hong Kong? What should you do if your car is stolen? If you cannot find your car in the end, will your insurer compensate you for your loss? Are personal belongings in your car covered by insurance? The car insurance experts at Kwiksure are here to answer these questions for you.