What exactly is third party motor insurance?

What exactly is third party motor insurance?

Every car owner in Hong Kong, and in the world in that matter, must have third party motor insurance, or third party liability insurance. This type of motor insurance provides the minimum coverage required by the Hong Kong legislation. Why is it called “third party” insurance? What does it cover and what are the exclusions and extensions to this car insurance policy? Stay with us to find out!

What is covered by third party motor insurance?

This basic motor insurance is referred to as a 'third-party' policy because it protects you if you're responsible for an accident and are sued by another person or company for the injuries or damages you caused. The beneficiary of the policy is not you, but someone who makes a claim against you. Third party policy covers your liability to third parties for injury or death and property damage. It is required by law for all car owners to have a third party liability insurance in place. Otherwise, you can face imprisonment and monetary fines.

Examples of third party motor coverage:

  • You strike a pedestrian, who suffers injuries and sues you.
  • You are involved in an accident where you are found guilty. The other driver makes a claim to cover the repair costs of his car and the medical treatments for the bodily injury he suffered.
  • While parking on a street, you scratch a neighboring Ferrari. The owner makes a claim to cover the costs of repainting the car.
  • You strike a motorist and as a result, he gets killed. The family of the deceased motorist sues you.

The minimum coverage

HK$100,000,000 is the minimum coverage under the Third Party Only policy for any event resulting in bodily injury or death. The standard property damage coverage in Hong Kong is set at HK$2,000,000 under third party motor insurance. This sum, however, might not be enough to cover the real costs of repairs and lawsuits in Hong Kong. Talk to motor insurance experts such as our team at Kwiksure, to find out all the pros and cons of extending your coverage limits.

Exclusions to the third party policy

The third party policy is the most basic policy available on the market and only covers costs related to the damage to other people and property. It comes with a number of exclusions that you need to know of. The third party motor insurance won’t cover the costs associated with the repair of your car, medical emergency, broken windscreens, roadside help etc.  

Third Party Fire and Theft

Third party fire and theft is an extension of third party only car insurance. It offers all benefits as in the third party policy and protects your vehicle from any damages resulted from a fire or theft. You can claim for replacing your car if it has been stolen or any expenses that arose as a result of attempted theft or fire.

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What is the difference between a third party and comprehensive insurance?

Apart from the price, which is considerably higher for the comprehensive motor insurance, the coverage and benefits also differ enormously. By now you know that the third party insurance covers the liability against claims made by a third party on your behalf, but it does not cover damages you and your vehicle suffer.

If you are looking for protection for your vehicle or yourself, then comprehensive motor insurance is for you. You can customize the comprehensive motor policy, so it covers:

  • Cost of repairing or even replacing your damaged vehicle
  • Cost of repairing or replacing damaged windscreens
  • Costs of car towing
  • Roadside assistance and medical expenses in case of an accident
  • Honoring No Claims Discount (NCD)
  • And other benefits!

Even in comprehensive auto insurance, there are policy exclusions. Read carefully your insurance policy to be exactly sure for what you’re covered, or contact Kwiksure to understand more about the exclusions in this type of policy.

Where to buy third party motor insurance in Hong Kong?

Since you are legally obliged to purchase the minimum third party motor insurance in Hong Kong, you are probably wondering where to snatch the best deal for it. Whether your goal is to get only the minimum protection for the least amount of bucks or to purchase the comprehensive solution for your car, we do advise you to do it via an insurance broker, such as Kwiksure.

Not only will the broker source the cheapest car insurance options for you (at Kwiksure, some policies cost as low as HK$777), it will also make sure you get the coverage you need. By comparing plans and quotations among top insurers in Hong Kong, you will have a better overview of what’s on the market.

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Contact Kwiksure for your insurance solutions!

Besides car insurance (third-party and comprehensive), Kwiksure also provides home insurancemotorcycle insuranceVHIS, and more! Use our online quotation system today to receive a free quote! Wish to chat with us for personalized solutions? Contact our team of expert insurance advisors today. They'd be happy to provide you with impartial suggestions to help you choose the perfect insurance plan.