Electric Vehicle/Tesla/BYD Insurance -
Third-party/Comprehensive Coverage

Electric vehicle (EV) insurance, like private car insurance, is divided into third-party and comprehensive coverage, with minor differences in coverage – EV insurance allows drivers to add coverage for charging equipment.

  • Third-party liability electric vehicle insurance - covers bodily injury and property damage to third parties in traffic accidents.
  • Comprehensive electric vehicle insurance - in addition to third-party coverage, it also covers damage to the insured vehicle and medical expenses for the owner.
  • Electric vehicle drivers can add coverage for personal charging equipment.

The option for 'personal charging equipment coverage' exists because some electric vehicle owners may use aftermarket chargers due to longer charging times with older original charging plugs.

When purchasing EV insurance, you should check whether the insurance's 'charger liability coverage' only covers original chargers. If so, you may consider purchasing 'personal charging equipment add-on coverage'.

電動車
Third-party Electric Vehicle Insurance
Comprehensive Electric Vehicle Insurance
Third-party Liability
Third-party death or bodily injury
HKD $100M
HKD $100M
Third-party property damage
HKD $2M
HKD $2M
Extended coverage for aftermarket electric vehicle charger
✖
✔with limit
Own Vehicle Coverages
Own vehicle damage
✖
✔
Comprehensive coverage for internal electric and electronic components
✖
✔
Replacement of aftermarket electric vehicle charger
✖
✔
New-for-old replacement
✖
✔within one year of first registration
Windshield and window coverage
✖
✔
Additional Coverages
24-hour free towing service
✖
✔with limit
24-hour emergency roadside assistance
✖
✔with limit
No-claims discount (NCD) protection
✖
✔
Temporary replacement electric vehicle
✖
✔with limit

Learning by watching videos

Comparison of insurance for electric and gasoline vehicles - [Car Insurance 101 EP5]

Tesla electric vehicle drivers seem to be frequently targeted, becoming the stars of many dashcam videos. Is it true that electric vehicles are particularly prone to accidents, leading to higher premiums? What are the differences in coverage between electric and gasoline car insurance? And most importantly — how can you get the best deal on electric vehicle insurance?

Why does insurance for Tesla/BYD electric vehicles cost more than that for gasoline vehicles?

EV insurance premiums are higher than those for gasoline vehicles by between 30% and 150%. There are a number of reasons for that:

Explain-EV-Expensive-IMG
Why does insurance for Tesla/BYD electric vehicles cost more than that for gasoline vehicles?

EV insurance premiums are higher than those for gasoline vehicles by between 30% and 150%. There are a number of reasons for that:

Expensive Parts

Electric vehicles, especially Tesla vehicles, are already expensive themselves, and the choice of aftermarket parts is extremely limited. Moreover, repairs can only be made at designated service centers and authorized body shops. This stands in sharp contrast with gasoline vehicles, the repair jobs on which can be handled by even the run-of-the-mill repair shop. With this lack of competition, replacement parts and labor are often more expensive than for conventional vehicles. Simply replacing the windscreen may set you back by HKD $20,000. Last but not least, Tesla cars have a one-piece body shell made of aluminum alloy, and even a slight collision requires the entire body shell to be replaced.

Higher Accident Risks

Compared with gasoline vehicles, electric vehicles are capable of faster acceleration. Even experienced drivers may take some time to get used to the performance of electric vehicles. In emergency situations, this strong performance may actually lead to accidents if the driver fails to stop in time or steps on the “gas” pedal in error. In other words, the superior performance of electric vehicles may actually increase the risk of accidents.

Explain-EV-Expensive-IMG

Closed Market

Tesla vehicles can only be repaired by authorized auto repair shops, and the high cost of parts prevents new repair shops from entering the market, effectively exacerbating the vicious cycle.

Fewer insurers in the market

Due to the higher risks and repair costs of electric vehicles, there are fewer insurers in the market willing to provide coverage. This naturally increases the premiums for electric vehicle insurance.

EV-Tesla-Byd-Comparison-img

Choosing EV/Tesla/BYD insurance? Experts teach you the four things to look at!

Choosing EV/Tesla/BYD insurance? Experts teach you the four things to look at!
EV-Tesla-Byd-Comparison-img

Look beyond the premium; also consider the deductible.

The deductible is a predetermined amount in the policy that the policyholder must pay to the insurer when making a claim. For example, if the total claim amount is $15,000 and the deductible is $5,000, the policyholder will have to pay a $5,000 deductible, and the remaining $10,000 will be paid by the insurer.
The higher the deductible, the lower the premium, and vice versa. Some insurance companies' electric vehicle insurance premiums may be $1,000 to $2,000 cheaper than other companies on the market, but the basic deductible can be as high as $40,000. In other words, if the driver has an accident, they need to pay the first $40,000, and any remaining balance will be paid by the insurer. In addition, when taking out insurance, drivers should also compare the deductibles charged by different insurance companies to unnamed drivers, young drivers, and inexperienced drivers.

Third-party liability/property coverage limit for electric vehicles

Third-party insurance for electric vehicles covers the driver's liability for injury or death suffered by third parties, and some insurers further cover third-party property damage. You can decide which type of third-party insurance to purchase based on your needs.

Charger liability coverage

Charger liability coverage compensates the driver for liability issues arising from the use of chargers, such as if a fire is caused when using a charger in a public parking lot. Some insurers only cover accidents caused by Tesla's original chargers. If you need to use a charger of a different brand, you would need to purchase additional coverage.

24-hour roadside assistance for electric vehicles

Just as gasoline cars can run out of gas while on the road, so can electric vehicles run out of battery power. Therefore, 24-hour roadside assistance is a must-have. When comparing different insurance plans, in addition to paying attention to the towing fee reimbursement limit, check whether the coverage further includes the cost of taking a taxi to the repair center after the towing, as well as the car rental fees for temporary replacement vehicles during the electric vehicle repairs.

How can I save on electric vehicle/Tesla insurance?

To lower your electric vehicle insurance premiums, you can consider the following:

EV-Tesla-Byd-Comparison-img
How can I save on electric vehicle/Tesla insurance?

To lower your electric vehicle insurance premiums, you can consider the following:

EV-Tesla-Byd-Comparison-img

Secure only third-party insurance

Although a comprehensive policy offers better protection than a third-party policy, if you want to save on premiums and are confident about your driving skills, you may consider securing only third-party car insurance.

Drive less

Since electric vehicles can track the vehicle’s mileage more accurately, reducing your mileage can help you avoid having to pay a "high mileage deductible" when making a claim (if your Tesla has an average daily mileage of >130 km over the past 12 months, you will have to pay the high mileage deductible when making a claim).

Accumulate a 60% no-claims discount

Just like with gasoline cars, you have a no-claims discount (NCD) with an electric vehicle. Provided you have not made any claims during a certain period of time (usually calculated in number of years), the insurer will provide a corresponding percentage of premium discount when the policy is renewed in the following year. If you can accumulate a 60% , this will greatly lower your premiums.

P-license drivers can buy electric vehicles later

If you are a P-license driver or have less than two years of driving experience, we recommend that you gain some experience before purchasing an electric vehicle. Otherwise, if you have already paid a deposit but later fail to secure insurance coverage, it can be a very awkward situation.

Propose a driver restriction clause to your insurer

You may propose a driver restriction clause to your insurer, restricting coverage to only when your vehicle is driven by its owner or a registered driver. You can further lower your premium this way.

Shop around

Kwiksure can help you compare the quotations from more than 60 insurers all at once, and find the most affordable and suitable car insurance plan.

FAQs

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Is it mandatory for drivers to purchase car insurance for electric vehicles?

Under Hong Kong laws, all vehicles on the road must have third-party liability insurance for personal injury or death. This provides basic protection for vehicle owners and is a basic requirement for automotive insurance in Hong Kong. This applies to both gasoline and electric vehicles.

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Do you recommend that drivers on a probationary license purchase electric vehicles?

Due to the higher risk of accidents, very few insurers offer coverage for electric vehicles to new drivers. Therefore, we recommend that new drivers accumulate some driving experience before purchasing an electric vehicle. You don’t want to be in the awkward situation where you’ve made a deposit but then fail to secure car insurance.

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Is electric vehicle insurance more expensive than insurance for traditional petrol cars?

Yes. Insurance premiums for electric vehicles (EVs) are often around 30% to 150% higher than those for petrol cars. This is mainly due to the higher cost of parts, the higher performance of some EVs which may increase accident risks, a relatively closed market, difficulties in repairs, and the smaller number of insurers offering EV coverage.

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How much does electric vehicle insurance cost?

The premium for an electric vehicle depends on factors such as the make and model of the vehicle, the level of coverage (third-party or comprehensive), and the driver's profile. Premiums can range from several thousand to tens of thousands of Hong Kong dollars.

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How can I save on electric vehicle insurance premiums?

One of the most effective ways to reduce your EV insurance premium is to build up a No Claims Discount (NCD) of up to 60%. You may also consider opting for third-party insurance, requesting a restricted driver clause from your insurer (for example, limiting the vehicle to the owner or named drivers), reducing the estimated annual mileage, and consulting a professional insurance broker to find the most suitable insurance plan for your needs.

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Is the EV battery covered by insurance? Will battery degradation be compensated for?

Most motor insurance policies only cover battery damage caused by an accident. Normal battery ageing or degradation is generally not covered.

However, Kwiksure now offers dedicated EV Charging Station Liability Insurance, which provides more direct and comprehensive protection for damage to your charging equipment, as well as third-party liability arising from charging.

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Does electric vehicle insurance cover damage to a private EV charging station?

EV insurance generally only covers portable charging cables and other accessories carried with the vehicle. If a private charging station is permanently installed at a detached house or village house parking space and connected to the household power supply, it would generally fall under home insurance coverage.

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If an electric vehicle catches fire accidentally while charging and the fire damages nearby vehicles, will the insurance cover the loss?

Whether you have third-party or comprehensive insurance, the policy will generally cover third-party property damage or bodily injury provided that the vehicle owner is legally liable for the incident.

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