【Third-Party vs. Comprehensive Insurance Comparison】 Comparing coverage, Premiums, and Claims

Hong Kong car insurance is mainly divided into Third-party liability insurance and Comprehensive insurance. Hong Kong has a large population and many cars, plus there are frequent heavy rain flooding. As a car owner, how should you protect your vehicle and choose the right car insurance? Kwiksure will explain in detail the coverage of the third party  car insurance and comprehensive insurance, the factors that affect the premium, and the reasons for car insurance rejection, so that your car can get the most suitable protection.

Comprehensive  insurance vs. third-party insurance: a comparison

Since the three basic car insurance policies only cover injury and property damage to third parties other than the car owner, if a traffic accident occurs, the car owner will have to pay all the car repair costs themselves. Therefore, many car owners choose to purchase additional insurance.Comprehensive insurance get comprehensive protection. Full coverage insurance has the broadest scope of protection, which, in addition to the three basic insurance policies, also provides compensation for the owner's own vehicle.

Factors affecting insurance premiums

Policyholder's age / License duration

Younger drivers or those with less driving experience are often perceived as having insufficient driving skills. According to underwriting data,Traffic accidents are more likely to occur, so insurance companies generally charge higher premiums or may include deductibles or other conditions.

Vehicle age

The older a vehicle is, the lower the reliability of its components and the higher the risks involved. Therefore, insurance companies usually charge additional fees on top of the premium for vehicles that are over 10 years old.

Vehicle market value

The compensation amount for full coverage will be taken into consideration Vehicle market value. Therefore, the value of a car at the time of insurance directly affects the premium. Since a higher car price involves a higher claim amount, it poses a higher risk to the insurance company, thus increasing the premium accordingly. Supercars or certain vehicles that require expensive parts ordered from overseas will also have higher full-coverage premiums than ordinary vehicles.

Vehicle performance

Vehicle performance primarily affects insurance premiums. The higher the engine horsepower and speed of a vehicle, the greater the chance of speeding or a collision, and therefore the higher the premium.

Driver profession

The car owner's occupation is also a factor that affects insurance premiums. For example, if the car owner works in the construction industry,possible need often Driving into or out of construction sites carries a higher risk of accidents or vehicle damage, resulting in significantly higher insurance premiums compared to the average white-collar worker, and there may also be additional clauses.

Deposit

Deposit the deductible, also known as the deductible, is the amount the policyholder must pay out of pocket when making a claim; the insurance company then reimburses the remaining amount. The deductible varies between insurance companies and insurance plans; a higher deductible results in a lower premium.

Private cars generally do not have a claim discount.

Comparison of Third party insurance and comprehensive insurance

For example, a driver who is 36 years old, has been driving for 5 years, has a 60 NCD, and is a 2024 BYD ATTO 3 (insured amount of HKD 250,000).

*The above prices are for reference only as of November 17, 2025. All information is subject to the announcements of the relevant insurance companies.

Comparison of coverage items in comprehensive car insurance

*All information is subject to the announcements of the relevant insurance companies.

Car Insurance Case Answers

Scenario 1: If I file a claim after a car accident, will my NCD be deducted next year?

Full coverage: If you make a claim with the insurance company after a car accident, the No-Claim Discount (NCD) for the following year will generally be deducted. However, if you have No-Claim Discount coverage, the discount will be reduced up to the limit. For example, if the claim amount is no more than 15% of the insured amount and no third party was involved in the accident. When you renew your insurance next year, your NCD will not be deducted.

Third-party liability insurance: Third-party liability insurance covers damage to your own vehicle. Therefore, if a claim is made against a third party, it generally will not affect your NCD (Non-Cost Compensation Certificate). On the contrary, if a third party makes a claim, your NCD may be deducted when you renew your insurance the following year.

Scenario 2: Towing and medical expenses in case of a traffic accident?

Full coverage: usually includes Insured vehicles that are rendered undrivable due to mechanical failure or traffic accidents.Towing service fee, maximum compensation per instance is approximately $1,000-$2,000, covering towing the vehicle to the repair center. Regarding medical expenses, personal injury medical expenses for both the vehicle owner and passengers are covered, with compensation ranging from $2,000 to $10,000, depending on the insurance terms.

Third-party liability insurance: Some third-party liability insurance policies include 24-hour free roadside assistance and towing services, but the coverage and compensation amount are generally not as comprehensive as full liability insurance. In addition, third-party liability insurance does not cover medical expenses for the vehicle owner and passengers, and such medical expenses must be borne by the vehicle owner.

Scenario 3: Vehicle stolen?

Comprehensive Coverage: The insured can claim compensation for vehicle theft from the insurance company, but must first report the theft to the police and provide a police report and claim application. The compensation amount is the depreciated market value of the vehicle at the time of theft, minus the theft deductible stipulated in the policy.

The three guarantees do not cover losses due to vehicle theft; vehicle owners must bear the loss of their stolen vehicles themselves.

Scenario 4: Rental fees when repairing a vehicle?

Full coverage: Full coverage generally covers rental car costs during the vehicle repair period. The coverage period is usually 5 to 7 days, and the coverage amount is approximately $500 to $1,000 per day, depending on the insurance company's terms.

The three guarantees do not cover damage and repair costs to your own vehicle. Therefore, rental car fees during the repair period are generally not covered by the three guarantees, and the car owner is responsible for the rental car fees.

Scenario 5: Are you required to pay a high deductible for a traffic accident?

Comprehensive insurance and third party insurance : Is usually a deductible, also known as a prepayment. SinceThe liability amount refers to the portion of the compensation that the car owner must pay out of pocket each time a claim is made. After the car owner pays the relevant amount of self-liability. Only if the insurance company pays out a deductible exceeding that amount will the insurance company compensate for the loss. The deductible can vary depending on the insurance company, the vehicle model, and the policy terms, generally ranging from several thousand to over ten thousand dollars.

Scenario 6: Vehicle damaged by wind and water?

Comprehensive insurance typically covers vehicle damage caused by typhoons (such as Typhoon Signal No. 8) and heavy rain (flooding), including damage from falling trees, broken windows, vehicles being overturned by strong winds, and flooding. The insurance company will compensate based on the actual repair costs. If the vehicle is severely damaged and requires total loss reimbursement, compensation will be based on its depreciated market value.

The three guarantees do not include compensation for damage to the vehicle itself, and will not cover vehicle damage caused by typhoons or flooding.

Tricky Car Insurance | Will Car Insurance Companies Refuse to Cover Your Insurance?

Because insurance companies assess and determine premiums based on each car owner's individual circumstances, policyholders with poor driving records or multiple claims may be denied coverage. Some insurance companies also refuse to insure young drivers or those with less than two years of driving experience to reduce the risk of claims. In such cases, even if the insurance company underwrites the policy, the policyholder may have to pay premiums and deductibles to obtain coverage.

If the car owner has been refused insurance or had their insurance terminated.Not yet due once the policy is lost, it becomes difficult to find another insurance company to cover it. Therefore, car owners should remain vigilant while driving and try to avoid traffic accidents to maintain a good record. Young people. P License owners can choose to purchase the third party car insurance policies first, and then purchase full insurance after holding a valid driver's license for two years to save on insurance premiums

Which car insurance shop should I choose?

Besides premium prices, policyholders should compare the coverage and exclusions of different insurance plans and weigh their individual needs to choose a suitable plan. You can try obtaining quotes through different channels, comparing prices from different providers, and selecting the most cost-effective plan to save on premiums. Contact a reputable car insurance broker to get a free insurance quote.。