Good Car Insurance Deals | 2025 Car Insurance Selection Guide
Is the car insurance coverage good?
Every car owner may have a different answer to the question "Which car insurance is the best?" because everyone's needs and standards are different. Car insurance is divided intothird-party liability insurance("three-party liability") andcomprehensive car insurance("full coverage"), and the coverage and costs of the two differ. Below, we will explain in detailthe 7 major factorsand compare the features of major Hong Kong insurance companies (such as Allianz, Zurich, Liberty Mutual, Dah Sing, and Ping An Insurance). AWM compares the different coverage and costs of their three-party and full coverage policies to help car owners choose the most suitable car insurance plan.
When choosing car insurance, car owners need to select a car insurance policy that is reasonably priced and provides suitable coverage based on their own needs and budget. Only in this way can it be considered a good insurance policy
The difference between "third-party liability insurance" and "comprehensive auto insurance"
Car insurance is mainly divided into the following two types:
1. Third party liability insurance ("Three Guarantees")
Mandatory insurance is required under Section 4 of the Motor Insurance (Third-Party Risk) Ordinance (Chapter 272). The law mandates that all vehicle users (including vehicle owners and their authorized users) must purchase this insurance
Coverage includes: personal injury or property damage to a third party caused by an accident
Excluding compensation for damage to one's own vehicle
2. Comprehensive auto insurance ("full coverage")
In addition to covering the "three insurances" (insurance, insurance, and maternity insurance), it also includes compensation for losses to the insured vehicle, such as:
Windshield cracked
Theft or typhoon damage caused by natural disasters or man-made calamities
7 Factors Affecting Car Insurance Premiums
Insurance companies assess premiums annually based on multiple factors, and the weight given to these factors varies among companies. Premiums are primarily influenced by the vehicle owner, the registered driver, and the insured vehicle. Below are seven major factors affecting auto insurance premiums:
Four factors related to vehicle owners and registered drivers
1. Years of driving experience
Drivers with insufficient driving experience (such as those with less than two years of driving experience) are more likely to have accidents
- High-risk car owners will have their insurance premiums increased, and may not even be able to get a quick quote
2. Age
Young car owners (under 25 years old) often lack awareness of crises and are at higher risk
Older car owners can enjoy lower insurance premiums
The younger the driver and the shorter their driving experience, the higher the assessed risk will be. As a result, insurance companies will raise premiums or even refuse to provide quick quotes
3. Occupation
Certain professions (such as the newspaper industry and the performing arts industry) are considered high-risk professions, so insurance premiums may be higher
Civil servants have lower risks and therefore lower insurance premiums
4. Driving Record
Car owners with a good driving record (no traffic violations, no claims) will have lower insurance premiums
2. Three factors for insuring vehicles
Not only car owners and drivers, but vehicle performance also affects insurance premium calculations. Higher-performance, more powerful cars require more driving skills, so the probability of accidents while driving these types of cars is higher than that of family cars and other small cars, and the insurance premiums are also relatively higher
1. Vehicle age
- The older the car, the higher the chance of it breaking down, and the higher the insurance premium may be
2. Vehicle model
Cars with better performance and higher horsepower require higher driving skills and have a higher probability of accidents, therefore their insurance premiums are also higher
Insurance premiums for family cars and small cars are relatively inexpensive
3. Vehicle market value
The higher the vehicle's market value, the higher the compensation the insurance company will have to pay when reimbursing, and therefore the higher the premium will be
Car edge protection is good, 3 basic principles
Car owners need to choose an appropriate prepayment based on their financial capacity and risk tolerance; the policy supplementary terms refer to the coverage and terms of the car insurance. Car owners need to carefully read the policy supplementary terms to understand the details of the coverage and terms in order to ensure that their rights and interests are protected
When choosing car insurance, car owners should keep the following three basic principles in mind:
1. Insurance premium
The price of car insurance is one of the primary factors that car owners consider
Car owners can choose the most suitable insurance policy based on their own needs and budget, and by referring to the seven factors that affect insurance premiums
2. Base Fee
"Deadline fee" refers to the amount that the car owner must bear in the event of an accident
The base fee is usually higher for younger drivers (under 25 years old), less experienced drivers (less than two years of license experience), or anonymous drivers
If the car owner is willing to pay a higher down payment, the insurance premium may be relatively lower, but they need to make sure they can afford that amount
3. Additional Policy Terms
Car owners need to carefully read the additional terms and conditions of the policy to understand the scope of coverage and details of the terms, such as:
Is it permissible to lend a car to a young or inexperienced driver?
Is it limited to registered drivers only?
Does the towing service need to be arranged through the insurance company?
These details directly affect the user experience and coverage of car owners
A key comparison of the five major auto insurance companies in the market
| insurance company | Allianz | Zurich | Liberty | Dah Sing | China Ping An |
|---|---|---|---|---|---|
| No-claim discount protection | Claims within one year not exceeding HK$100,000 | Claims within one year not exceeding HK$50,000 | Claims within one year shall not exceed HK$60,000 or 15% of the insured amount (whichever is lower) | Claims within one year shall not exceed HK$60,000 or 15% of the insured amount (whichever is lower) | Claims within one year shall not exceed HK$60,000 or 15% of the insured amount (whichever is lower) |
| Windshield protection | Up to HK$5,000 | There is no limit to the number of times you can have your car repaired at a designated auto repair shop | Up to HK$5,000 | Up to HK$5,000 | Up to HK$3,000 |
| Temporary vehicles | HK$1,000 per day (maximum 5 days) | 1) A maximum of HK$4,000 (the insured shall bear 20%) or 2) A maximum of HK$2,000 for taxi fares | Maximum HK$1,000 per day (maximum 5 days) | Up to HK$5,000 (up to HK$1,000 per accident, with a 20% charge on the rental fee) | ❌ |
| 24-hour free towing service | Maximum HK$2,000 | Maximum HK$2,000 | Maximum HK$2,000 | Maximum HK$2,000 | ❌ |
| Personal accident insurance for registered drivers | Up to HK$250,000 | Up to HK$100,000 | Up to HK$100,000 | Up to HK$100,000 | ❌ |
The above list is for reference only; the actual coverage and details are subject to the policy terms. Car insurance premiums from different insurance companies may vary on various online pricing platforms, and claims services may also differ. Before purchasing insurance, car owners should not only compare premiums but also pay attention to the terms and conditions, such as minimum deposits and additional clauses, to avoid being unprotected or facing significant financial losses in the event of an accident
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