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Hong Kong has one of the most efficient public transport systems in the world, so buying a car may seem unnecessary for some expats. However, if you are looking to live in more remote locations such as the New Territories, or would like to have the option of driving out to the countryside during the weekends, you may want to consider owning a car. The Hong Kong government requires all drivers to purchase car insurance, so there are a few things worth considering, including the types of car insurance and knowing what affects your premiums.

Types of Car Insurance in Hong Kong

Many insurance companies in Hong Kong offer a plethora of coverage options that are usually categorised into two main types: third party car insurance and comprehensive car insurance.

Third party car insurance

Third party insurance, as the name suggests, protects you from the costs of damages to other motor vehicles and their passengers in the event of an accident. This provides the policyholder with the minimum coverage required by Hong Kong law, with the lowest form of coverage available being HK$100,000,000 in the event of bodily injury or death. As this is the most fundamental form of car insurance, most third party policies only offer a limited amount of coverage and exclude coverage of any damages caused to your car as well as personal injury or death.

Comprehensive car insurance

Those looking for further coverage may prefer to opt for a comprehensive car insurance plan. This form of car insurance not only protects you and your family from legal liability with third parties, but also tends to include personal accident coverage, No Claims Discount (NCD), vehicle replacement in the case of a total loss, vehicle towing, etc. Comprehensive insurance policyholders are therefore saved from having to foot the bill for their own car and personal injuries in the event of an accident.

Knowing what affects your car insurance premiums

When purchasing a car insurance policy that best suits your requirements, it is also worth considering choosing the right car, adjusting your deductible and obtaining your NCD.

Choosing the right car

The model, make, and engine size of a car all have an impact on your insurance premium. Policyholders owning luxury models will expect to pay much higher premiums because they are simply more expensive to repair or replace after an accident. However, this does not mean that owning a cheap car would necessarily lead to paying lower premiums. If the vehicle model is known for having safety concerns, you may ironically end up forking out a considerable sum for your insurance plan.

Adjusting your deductible

A deductible is the specific amount that you agree to pay before your insurance coverage kicks in. For example, if you agree to pay a HKD 2,000 deductible, you will have to pay the first HKD 2,000 towards the damage costs incurred from an accident. Should these costs exceed the deductible, your insurance company will pay the rest. One way to decrease your premium is by increasing your deductible. Higher deductibles are recommended for safe drivers with a clean record as this will offer considerable savings on your insurance premium. However, it is important to note that deductibles must be paid up front so it is advisable to strike a balance between your budget and the risk you are willing to take.

Obtaining your No Claims Discount

Insurance providers in Hong Kong use a system called No Claims Discount (NCD), which rewards significant discounts to drivers with clean records or those who have not submitted any claims. With NCD, you can easily make long-term savings on your car insurance. After one year, policyholders will receive a 20% discount on their next year’s premium, followed by 10% added each subsequent year – up to a maximum of 60%. Being a safe driver can therefore drastically reduce your insurance premium over time.


Kwiksure represents the best auto insurers in the industry and our advisers will help you to find the right coverage for your car, along with a great rate. If you need help finding and comparing third party car insurance coverage in hong kong, contact Kwiksure

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