Those looking for cover that goes beyond the minimum protection required by Hong Kong legislation, but without the full range of benefits offered by comprehensive car insurance, might want to consider third party fire and theft (TPFT) car insurance. One thing to note here, however, is that while this type of vehicle insurance is commonly sought after in countries like the UK, it is not as popular in Hong Kong. Read on to find out why that is, and to discover what you may not have known about TPFT insurance.
What is third party fire and theft car insurance?
Like third party only car insurance, TPFT plans also protect the policyholder against bodily injury or death and property damage to third parties (including passengers). What makes TPFT policies different, however, is that its policyholders’ vehicles are also covered as property.
What does it cover?
On top of third party insurance cover, TPFT policies also safeguard the insured’s vehicle against losses and damages caused by fire and theft. Generally speaking, TPFT policies will reimburse you for:
- The theft of your car
- Damages to your car from attempted theft
- Losses caused by car fires (e.g. accidental fire)
While TPFT plans cover more than third party only plans, they do not offer the full range of benefits provided by comprehensive car insurance policies. For additional peace of mind, we highly recommend that you consider comprehensive motor insurance, which covers the driver, their vehicle, as well as third parties, with the option of selecting extra benefits like damaged windscreen cover and No Claims Discount (NCD) protection.
The cost of TPFT vs comprehensive car insurance
Most people looking for third party fire and theft car insurance often do so because they are after a plan that offers slightly more protection than third party only plans, but do not want to pay too much for a comprehensive car insurance policy. What many people don’t know, however, is that comprehensive car insurance plans in Hong Kong can often be cheaper than TPFT policies.
How is it possible?
So, how is it possible that a comprehensive car insurance policy often costs less than a TPFT policy? One likely explanation behind why comprehensive car insurance is usually cheaper than TPFT policies is because a lot more people prefer to buy comprehensive plans, meaning there’s a larger pool of policyholders from which insurers can spread their risk. As a result, insurers can offer more competitive prices.
Another explanation for this is that, because there are fewer insurers offering TPFT policies, options are often quite limited, so people are far less likely to get the best deal. To ensure that you don’t miss out on the best value car insurance, it can pay to widen your search to include comprehensive auto insurance.
Finally, please note that the actual cost of your car insurance will come down to a wide variety of factors, such as the make of your car, your driving history, etc. To learn more about how premiums are calculated, read our article on the topic here.
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