Top 4 reasons why you need car insurance in Hong Kong

Top 5 reasons why you need car insurance in Hong Kong

There’s nothing quite like driving in Hong Kong. The city offers a one-of-a-kind skyline view for your cruise along Victoria Harbor, as well as unparalleled connectivity and convenience as you drive over to Macau or Zhuhai on the HZMB bridge

But before you take your newly bought car out for a spin, it’s crucial that you first purchase car insurance in Hong Kong. In this Kwiksure, we will explore the top 5 reasons why you need car insurance in Hong Kong. 

1. It’s legally required

In Hong Kong, you are legally required to have car insurance if you own a car in the city. Third-party insurance provides the minimum coverage required if you own a car in Hong Kong. However, as we will see, the reasons why you need car insurance in Hong Kong goes far beyond simply complying with the law. 

2. Covering for the cost of compensation

As the most basic type of car insurance available, third-party insurance covers the damage you or your vehicle may cause to a third party. If you are involved in an accident, the insurer will cover the liability against a claim by a third party on your behalf. As mentioned, this is the minimum insurance required for car insurance in Hong Kong

Specifically, the law requires the third-party policy to cover for HK $100,000,000 of any one event resulting in death or bodily injury. Although not required by law, most third-party policies will also provide HK $2,000,000 towards covering property damage. 

While this type of insurance is cheaper than other alternatives, thanks to its limited range of coverage, it may not best suit your interest if you wish to drive with a full sense of security in Hong Kong. In later points, we will look at other types of car insurance that will not only keep third parties secure but also provide protection for you and your vehicle. 

3. Protecting your car from accidents

The cost of repairing your car in Hong Kong isn’t cheap. This is especially the case if you own an expensive car with parts that are not readily available in the city. What if you accidentally bump into the back of another car? Or what do you do if a motorcycle scratches the side of your car during traffic, leaving an ugly squiggling line on the side of your vehicle? Not having a comprehensive car insurance plan will mean that you will have to pay for the full costs of these repairs, which in Hong Kong, may happen several times each year! 

Getting a comprehensive car insurance plan protects both third-parties and your own vehicle, even if you are at fault in an accident. This makes it a sensible option for regular drivers in the city who wish to get their repair costs covered in Hong Kong’s swirly roads.

4. Protecting your long-term finances

Unfortunately, car accidents are not the only road risks you’ll have to be aware of in Hong Kong. There are other car-related risks involved that are far more costly than paying for repair bills. 

For instance, natural disasters such as Typhoons are common on this island city, and may potentially cause irreparable damage to your vehicle if it is parked outside. With merely a third-party insurance plan, these damages to your car will not be covered by the insurer, and you will have to make full out-of-pocket payments for all the associated costs. Instead, a comprehensive car insurance plan will provide coverage for the damages incurred by adverse weather conditions, such as Typhoons. 

Another scenario is car theft. Without proper car insurance in place, getting your car stolen can potentially deplete your savings. From having to pay off the existing car loan to having to buy a new car, getting your car stolen is a real financial risk that all drivers in Hong Kong face. This is where comprehensive car insurance comes in. With its extensive coverage, a comprehensive car insurance policy will be able to reimburse you for the market value of your stolen vehicle. 

With a comprehensive insurance policy, these risks can be covered by your insurer, giving you more reasons for securing car insurance in Hong Kong. 

Getting car insurance in Hong Kong

As you can see, besides the legal requirement to do so, there are plenty of important reasons for getting car insurance in Hong Kong. However, there are also plenty of car insurance plans available in the city, each with its own premiums, exclusions, and special conditions. This makes finding the most suitable car insurance policy for you a difficult and daunting task. To find the best car insurance in Hong Kong, you can consult car insurance experts like Kwiksure. 

At Kwiksure, we are able to offer impartial car insurance advice as well as compare car insurance prices in Hong Kong. For further information, feel free to contact our car insurance experts or visit our website for a car insurance online quote today!