How Does Car Insurance Work in a Multiple-Vehicle Collision?

Hong Kong has many cars and narrow roads, making it easy for traffic accidents to occur with just a small mistake, and it's not uncommon for chain collisions to happen. This time, Kwiksure will explain who is responsible when multiple cars are involved in a collision, how insurance companies handle compensation, and how to respond calmly in the unfortunate event of a traffic accident.

Who is Responsible Depends on the Police Investigation and Court Ruling

In fact, whether it's a 'normal' car accident or a multi-vehicle collision, as long as the car owners dispute who is responsible for the traffic accident and cannot settle privately, the matter will be referred to the police for investigation and a court ruling. During the investigation, the police usually ask the owner of the front vehicle how many impact sounds they heard to help determine which driver was at fault. The owner of the damaged vehicle will request compensation from the at-fault driver based on the final court ruling. For more details, you can refer to our article titled The Ultimate Guide to Handing Car Crashes in Hong Kong 2024 (With Settlement Agreement Template).

Chain Collision / Which Driver Is Responsible for Compensation in a Multi-Car Pileup?

In simple terms, chain collisions are categorized as rear-end collisions or push collisions.

1. Definition of Rear-End Collision and Compensation Example

A rear-end collision occurs when the first vehicle brakes suddenly, and the following vehicle cannot stop in time, colliding with the vehicle in front. For example, if there are four vehicles A, B, C, and D, in a rear-end collision scenario, vehicle A suddenly brakes, vehicle B cannot stop and collides with vehicle A, vehicle C cannot stop and collides with vehicle B, and vehicle D also cannot stop and collides with vehicle C. In this situation, only vehicle A is not required to compensate. Vehicles B, C, and D are responsible for the damage to the third party (i.e., the rear of the vehicle in front) due to their inability to stop in time; therefore, their insurance companies must compensate. As for the damage to the front parts of vehicles B, C, and D, since it is caused by the drivers’ own errors and does not involve other drivers, it can only be compensated by their own comprehensive insurance.

2. Definition of Push Collision and Compensation Example

A push collision occurs when a vehicle is stationary but is struck from behind by another vehicle, causing it to collide with the vehicle in front. Using the example of four cars: A, B, C, and D—if Car A suddenly brakes, Cars B and C manage to stop in time, but Car D, unable to brake in time, collides with Car C, which then pushes Car B into Car A.

In this scenario, the accident is caused by Car D not maintaining a safe distance.

Car D's third-party insurance may need to compensate for the damages to Cars A, B, and C, which could be substantial. If one of the vehicles involved is a luxury sports car like a Ferrari, the amount the owner of Car D has to pay could be even more shocking. Therefore, it is crucial for vehicle owners to purchase adequate third-party insurance coverage. If you believe your third-party liability coverage is insufficient, you can even request to increase the coverage amount.

3. Definition and Compensation Example of Rear-end Collisions Caused by the Leading Vehicle

This situation is similar to the first type, but the accident arises from the negligence of the driver of the leading vehicle.

Assuming there are four cars: A, B, C, and D. The leading car, A, suddenly changes lanes in a hurry and then abruptly brakes, causing the following cars B, C, and D to be unable to stop in time. Car B crashes into car A, car C crashes into car B, and car D crashes into car C.

This situation is more complicated and largely depends on the court's final judgment. The judge will base the decision on whether there is clear evidence, such as dashcam footage or eyewitness testimony, that can prove that car A caused the entire accident. If the evidence is conclusive, the owner of vehicle A could be held fully responsible.

How to Handle a Multiple-Vehicle Accident or Chain Collision?

1. Stay calm, don’t let panic or anger dictate your actions, which could lead to poor decisions or make the situation worse.

2. See whether yourself, your passengers, and other road users are injured.

3. Stop the vehicle, turn off the engine and engage the handbrake. Do not move your vehicle unless the scene is dangerous, as per traffic regulations.

4. After ensuring the area is safe, exit the vehicle and head to a safe location, or remain inside and wait for assistance.

5. Write down all relevant driver details, including names, contact numbers, addresses, license plates, driver's license numbers, insurance companies, and policy numbers. Wait for the police to arrive for evidence collection.

Note on Settlements: Due to the complexity of chain collisions involving multiple vehicles, the risk of private settlements is higher; thus, you are strongly advised against settling privately or signing any settlement agreements.

6. When the police arrive, they will record contact information and gather evidence. Each driver will receive a report number.

7. Drivers should formally report the incident to their insurance company within 24-48 hours (as required by the policy) using paper or electronic forms (note: notifications via phone, WhatsApp, or email are not considered valid reports!). Within a month of the accident, the police will require you to provide a statement at a police station. You can use your report number to schedule an appointment.

8. Police investigations typically take 3 months to 1 year. Afterward, most cases will result in a 'Notice of Intended Prosecution' being issued to one party. A summons will be issued, and the notified driver must appear in court, where the liability for the accident will be determined.

Frequently Asked Questions

Who is liable after a chain collision?

Whether it's a 'normal' car accident or a multi-vehicle pile-up, if the car owners dispute who is responsible for the traffic accident and cannot settle privately, the matter will be referred to the police for investigation and court judgment. During the investigation, the police usually ask the owner of the front vehicle how many impact sounds they heard to help determine which driver caused the accident. The owner of the damaged vehicle will claim compensation from the at-fault driver based on the court's final decision.

How to distinguish between rear-end collisions and push collisions? How does insurance compensate in these different scenarios?

A rear-end collision occurs when the first vehicle brakes, and the following vehicle fails to stop in time, colliding with the front vehicle. A push collision happens when a vehicle is stationary and is struck by a rear vehicle, causing it to move forward and hit the front vehicle. If the damage is caused by another driver (hit by another vehicle), compensation will come from the at-fault party’s third-party insurance; however, if the damage is due to the owner's own fault (hitting the vehicle in front or an object), they can only claim against their own comprehensive insurance.