Basic Information on Company Auto Insurance
What are the differences between company vehicle insurance and regular private car insurance? What should you pay special attention to when purchasing insurance? Below are the three key points of commercial vehicle insurance (this article focuses on company commercial vehicles; other types of commercial vehicles, such as passenger cars, trucks, or general freight vehicles, will not be discussed in detail)
Company Auto Insurance Introduction and Coverage
Similar to private car insurance, commercial vehicle insurance is also divided into two types: third-party liability insurance (3-insurance) and comprehensive vehicle insurance (full coverage)
"Three-insurance" is the most basic type of car insurance, meeting only the minimum coverage requirements stipulated by the Hong Kong Transport Department. The law mandates that all company vehicles must have at least this level of insurance to legally operate in Hong Kong. The biggest difference between company and private car insurance in "three-insurance" lies in the coverage amount: forcompany vehicles, the minimum coverage for third-party personal injury or death caused by a traffic accident is HK$100 million, while the coverage for third-party property damage is generally only HK$500,000 to HK$1 million.
"Triple coverage" only compensates for personal injury and property damage to third parties other than the vehicle owner/policyholder. Therefore, if you want coverage for damage to your company vehicle and property, as well as driver injury or death in a traffic accident, you should purchase "comprehensive coverage." "Comprehensive coverage" provides additional protection for the insured and their vehicle on top of the "triple coverage." If your company vehicle is damaged in an accident, or the driver is injured, the related repair and medical expenses will be covered up to a certain amount
2. Documents required when applying for insurance
When applying for commercial vehicle insurance, the insurance company will require you to provide detailed information about the insured vehicle, the policyholder, and the company. Below is a list of documents typically required
The vehicle owner's and principal driver's Hong Kong identity cards and driving licenses; if the vehicle owner is a company, a certificate of incorporation is required
Vehicle registration documents and related permits
Insurance company renewal notice or previous year's policy
If the vehicle owner or primary driver has been involved in a traffic accident within the past three years, a vehicle accident report must be provided
If you are eligible for additional discounts such as no-claims discounts (NCD/NCB), you must provide relevant supporting documentation
Of course, different insurance companies may require policyholders to provide other information depending on the specific circumstances, such as the type of business purpose the vehicle is used for. When choosing company car insurance, you can also learn more about the types and coverage of different insurance plans according to your own needs, and then make adjustments accordingly
3. NCD/NCB for commercial vehicle insurance
One major factor affecting car insurance prices is the No Claim Discount (NCD). When a policyholder makes no claims in the first year, the insurance company offers a discount on the premium. Unlike private car insurance, the NCD for company car insurance typically starts at 10% for the first year of renewal (equivalent to 10% of the premium), increasing by 10% annually thereafter, accumulating up to a maximum of 30%, equivalent to 30% of the premium
It's important to note thatNCD can be transferred from one company vehicle policy to another under the same policyholder's name, but it cannot be transferred to different types of auto insurance.Because the NCD calculation methods for private cars and company vehicles differ, even if you receive a 30% no-claims discount on your private car insurance, you cannot transfer that discount to your company vehicle policy.
AWM Company Car Insurance Quotation Service (Multiple Vehicle Quotations)
To find the most suitable car insurance plan most efficiently, we recommend using AWM's free online quote service. We can provide you with commercial vehicle insurance quotes from multiple insurance companies at once. From the most basic company car insurance regulations and pre-sales and after-sales matters to handling various procedures and documents, AWM has professional customer service representatives familiar with the insurance industry who can provide you with detailed answers via WhatsApp. Contact us now!
Get free car insurance information at https://www.awm.com.hk/