Electric car insurance, similar to private car insurance, is divided into third-party and comprehensive coverage, with minor differences in coverage. However, electric car insurance allows drivers to add coverage for charging equipment.
The option for "personal charging equipment coverage" exists because some electric car owners may use aftermarket chargers due to longer charging times with older original charging plugs.
When purchasing electric car 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".
| Third-party Electric Car InsuranceThird-party | Comprehensive Electric Car InsuranceComprehensive | |
|---|---|---|
| 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 car charger | ✘ | ✔, with limit |
| Own Vehicle Coverages | ||
| Own vehicle damage | ✘ | ✔ |
| Comprehensive coverage for internal electric and electronic components | ✘ | ✔ |
| Replacement of aftermarket electric car 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 |
| NCD protection | ✘ | ✔ |
| Temporary replacement electric vehicle | ✘ | ✔, with limit |
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.
Compared with diesel 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.
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.
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 car insurance.
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 HKD $15,000 and the deductible is HKD$5,000, the policyholder will have to pay a HKD $5,000 deductible, and the remaining HKD $10,000 will be paid by the insurer.
Third-party insurance for electric cars 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 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.
Just as gasoline cars can run out of gas while on the road, so can electric cars 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 car repairs.
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 auto insurance.
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).
Just like with gasoline cars, you have a no-claims discount (NCD) with an electric car. 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% NCD, this will greatly lower your premiums.
| Year | Private car NCD |
|---|---|
| First year of driving with no claims | 20% NCD = 20% discount on premium |
| Consecutive 2nd year of driving with no claims | 30% NCD = 30% discount on premium |
| Consecutive 3rd year of driving with no claims | 40% NCD = 40% discount on premium |
| Consecutive 4th year of driving with no claims | 50% NCD = 50% discount on premium |
| Consecutive 5th year of driving with no claims | 60% NCD = 60% discount on premium |
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 car. Otherwise, if you have already paid a deposit but later fail to secure insurance coverage, it can be a very awkward situation.
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.
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.
A: 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 cars.
A: Due to the higher risk of accidents, very few insurers offer coverage for electric cars to new drivers. Therefore, we recommend that new drivers accumulate some driving experience before purchasing an electric car. You don’t want to be in the awkward situation where you’ve made a deposit but then fail to secure car insurance.
