Table of contents
What is Third-Party Liability Insurance (TPL)?Frequently Asked QuestionsCar Insurance Comparison | Coverage of Third-Party vs. Comprehensive InsuranceFactors Affecting PremiumsDifficult Car Insurance Cases | Can Car Insurance Be Denied?Frequently Asked Questions
【汽車保險2024】三保與全保比較|影響保費因素 | 車保拒保原因

【Car Insurance 2025】 Third-Party vs. Comprehensive Insurance Comparison | Factors Affecting Premiums | Reasons for Insurance Rejection

As a car owner, car insurance is an essential expense. But how should you choose the right policy? What are the differences between third-party insurance and comprehensive insurance? How do insurance companies determine premiums? This time, Kwiksure will provide a detailed explanation of the coverage of third-party and comprehensive insurance, the factors affecting premiums, and the reasons for insurance rejection, helping you select the right car insurance plan.

Comparing the quotes from over 60 HK insurers, Kwiksure helps you choose the car insurance that best fits your requirements. Get a quote now!

What is Third-Party Liability Insurance (TPL)?

According to Section 4 of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap. 272), all car owners must purchase third-party insurance (TPL). This coverage includes "third-party injury or death liability" and "third-party property damage", protecting the policyholder from legal liabilities in the event of an accident causing injury or death to third parties. The minimum statutory coverage amount is HKD 100 million.

Frequently Asked Questions

What are the differences between third-party insurance and comprehensive insurance?

  • Third-Party Liability Insurance (TPL) covers the policyholder’s legal liability for injury or death to third parties resulting from an accident.

  • Comprehensive Insurance (Full Coverage)includes all the coverage of TPL while also providing compensation for damage to the policyholder’s own vehicle.

     

Car Insurance Comparison | Coverage of Third-Party vs. Comprehensive Insurance

Since third-party insurance only covers injury, death, or property damage to third parties, car owners must bear the full cost of vehicle repairs if they are involved in an accident. As a result, many car owners opt for comprehensive insurance, which offers broader protection, including coverage for their own vehicle.

 

Third-Party Liability Insurance (TPL)

Comprehensive Insurance (Full Coverage)

Basic Coverage

Vehicle damage, fire, and theft

X

Third-party injury/death & property damage

Additional Coverage

Personal accident & medical expenses for driver

X

Choice of repair center

X

No Claim Discount (NCD)

X

Windshield coverage

X

Third-party legal assistance

X

"New-for-old" vehicle replacement

X

Temporary replacement car service

Free referral service

24-hour emergency roadside assistance

X

24-hour towing service

X

Factors Affecting Premiums

【汽車保險2024】三保與全保比較|影響保費因素 | 車保拒保原因

1. Driver’s Age & Driving Experience

Young or inexperienced drivers are considered higher risk due to a greater likelihood of accidents. As a result, insurers charge higher premiums and may impose deductibles.

2. Vehicle Age

Older vehicles are generally less reliable and involve higher risk. Insurers typically add surcharges for vehicles over 10 years old.

3. Vehicle Market Value

For comprehensive insurance, compensation is based on the car’s market value. Higher-value cars increase insurer liability, leading to higher premiums. Luxury sports cars or vehicles requiring imported parts tend to have more expensive insurance.

4. Vehicle Performance

High-performance cars with greater engine power and speed pose a higher accident risk, making third-party insurance more expensive.

5. Driver’s Occupation

Certain professions, such as construction workers, frequently drive into high-risk areas like construction sites, leading to higher premiums or policy conditions compared to office workers.

6. Deductibles

A deductible is the amount the policyholder must pay before the insurer covers the remaining claim. Policies with higher deductibles generally have lower premiums.

7. Claims History & No Claim Discount (NCD)

Insurers review a driver’s claims and traffic violation history when determining premiums. A clean record leads to lower premiums.

The No Claim Discount (NCD) rewards drivers who make no claims during the policy period with a progressive premium discount:

Policy Year

NCD Discount

1st Year

0%

2nd Year

20% (80% of premium)

3rd Year

30% (70% of premium)

4th Year

40% (60% of premium)

5th Year

50% (50% of premium)

6th Year

60% (40% of premium)

Difficult Car Insurance Cases | Can Car Insurance Be Denied?

Insurance companies assess each driver's individual circumstances when determining coverage and premiums. If an applicant has a poor driving record or multiple claims history, they may be denied coverage. Some insurers also reject young drivers or those with less than two years of driving experience to minimize risks. In such cases, even if coverage is granted, the policyholder may face extremely high premiums and deductibles.

If a driver has been previously denied coverage or had their policy canceled, it may be difficult to find another insurer. To avoid this, drivers should maintain a clean driving record by staying alert and avoiding accidents.

For young P-plate drivers, a good strategy is to start with third-party insurance and switch to comprehensive coverage after holding a full license for two years to save on premiums. Alternatively, they can be added as a named driver under a more experienced driver's policy (e.g., parents) to reduce costs.

Comparing the quotes from over 60 HK insurers, Kwiksure helps you choose the car insurance that best fits your requirements. Get a quote now!

Frequently Asked Questions

How to Choose the Right Car Insurance?

Besides considering premium costs, policyholders should compare coverage options and exclusions to find a plan that best suits their needs.

  • Request quotes from different providers and compare them to find the best value-for-money plan.

  • Consult a reputable car insurance broker for free insurance quotes and expert advice.

 

authorImage

Contact Kwiksure to get motor insurance quotes

Kwiksure has over 20 years of experience in the car insurance industry, comparing quotes from over 60 insurers in Hong Kong. Use our online quotation tool now to get a free car insurance quote!

The above information is for reference only. Kwiksure takes no responsibility for the accuracy and timeliness of the information. For the coverage, mode of compensation, benefit limit and premium levels of any specific insurance plan, please refer to the relevant policy terms.
Author Photo
Author Kwiksure Team

Kwiksure is a licensed motor insurance brokerage company with over 20 years of experience in insurance. The company strives to simplify insurance and select the best insurance plans for customers that fit their budget and coverage needs.

Kwiksure provides a range of insurance products, including car insurance, motorcycle insurance, cross-border insurance between Hong Kong and Mainland China, home insurance, travel insurance, domestic helper insurance, and voluntary medical insurance. The team has been named "Best Car Insurance Broker" and "Outstanding Leadership Award" by various media outlets over the years.

Consent
Choices