The difference between "three-insurance" and "comprehensive insurance" for automobiles
When buying or replacing a car, in addition to considering the model, your own needs, and daily expenses, choosing a reasonably priced car insurance policy with coverage that suits your actual situation is also very important. There are many types of car insurance on the market, with varying prices. Below is a brief introduction to the prices, coverage, and general differences between "comprehensive" and "triple" car insurance
Comprehensive car insurance (full coverage)
Comprehensive auto insurance, commonly known as "full coverage," builds upon the basic three-insurance policy to cover vehicle damage and losses caused by floods, fires, traffic accidents, or theft. Some insurance companies offer additional support, such as free towing and emergency assistance services. Because full coverage offers broader protection, it is generally more expensive than the basic three-insurance policy. However, it's important to note that strikes, riots, and disturbances are often excluded from coverage. To get quotes for auto insurance from different insurance companies, leave your information on the AWM website .
Third-party liability insurance (3P) is required by law
Third-party liability insurance, commonly known as "three-insurance," provides compensation for personal injury and property damage to third parties other than the vehicle owner/policyholder. Hong Kong law stipulates that all vehicle users (including vehicle owners and authorized users) must have third-party liability insurance for their vehicles; failure to do so can result in a fine of HK$10,000 and imprisonment for twelve months, and may also lead to a suspension of their driving license for 12 months to 3 years. Simply put, the minimum requirement for car insurance is three-insurance, as long as you are legally driving on the road
The coverage of "Three Guarantees"
In the event of an accident, everyone except the driver is considered a third party, including passengers in the insured vehicle. Personal injury or death and property damage to third parties will be covered
The law requires a minimum of HK$100 million for personal injury or death to a third party caused by a traffic accident, and a limit of HK$2 million for property damage to a third party
Some insurance policies also include third-party fire and theft coverage as an add-on to third-party liability auto insurance, but not all policies include this option
Key factors for "three insurances" premiums
Vehicle type and brand: Different brands and models of vehicles have different risks, so the price of the three insurances will also be different
Vehicle age: The younger the vehicle, the lower the insurance premium will usually be
The owner's age and driving experience: Young owners and those with little driving experience are often considered high-risk drivers, and therefore their insurance premiums will be higher
Insurance type and coverage amount: Different types of insurance and different coverage amounts will affect the price of the three insurances
Vehicle usage: The purpose of a vehicle also affects the price of its three types of insurance. Vehicles used for commercial purposes usually require higher insurance premiums because they are driven on the road for longer periods and the risks are higher
The price advantage of "three guarantees"
Because the coverage of the third insurance policy is less, the price of the third insurance policy is lower than that of comprehensive car insurance. If you do not drive for long periods of time, or have a fixed and short driving route, the third insurance policy would be a good choice
The general difference between "Three Guarantees" and "Comprehensive Guarantee"
| Scope of protection | Third party insurance (three guarantees) | Comprehensive car insurance (full coverage) |
|---|---|---|
| Damage to the property of a third party | ✓ |
✓ |
| Accidental third-party injury or death | ✓ |
✓ |
| The accident caused damage to the car | ✗ | ✓ |
| Damage or loss resulting from car theft | ✗ | ✓ |
| Windshield protection | ✗ | ✓ |
| No-claim discount protection | ✗ | ✓ |
| 24-hour roadside emergency assistance | ✗ | ✓ |
| Lost car keys | ✗ | ✓ |
| Free towing service | ✗ | ✓ |
| premium | Lower | Higher |
*Note: The coverage of the three types of insurance and full coverage listed above is for general comparison and reference only. Please refer to the actual policy details for specific details
Which is more suitable for me: "full coverage" or "triple coverage"?
If your car is quite old and has been driven for many years, we recommend that you buy the economical "three-insurance" policy. However, if your car is new, we recommend that you buy "comprehensive insurance" which provides more comprehensive coverage for both yourself and your car
In addition, and more importantly, it depends on your actual situation and risk tolerance to decide whether to purchase "triple coverage" or "comprehensive coverage"
Things to pay attention to in "Three Guarantees" and "Comprehensive Guarantee"
The deductible
, also known as the prepayment, is usually paid upfront when making a claim, regardless of the type of car insurance. The remaining amount is then covered by the insurance company. For example, if the total claim is NT$30,000 and the policy has a deductible of NT$10,000, the policyholder must first pay the NT$10,000 deductible, and the remaining NT$20,000 will be covered by the insurance company. Different car insurance policies have different deductibles depending on the situation. For example, there may be deductibles for young drivers, inexperienced drivers, and third-party property damage. The relevant amounts can vary greatly. Therefore, when comparing policies from different insurance companies, in addition to comparing the premiums, remember to carefully read the details of the deductible and other terms and conditions.Simply put, higher risk means higher premiums, whether for comprehensive car insurance or three types of insurance. Several factors affecting premiums have been mentioned above. To get lower premiums, you need to avoid factors that increase them! Here are some suggestions for reducing premiums :
Maintain a good driving record: If your record is poor or you have been involved in traffic accidents, the insurance company may charge higher prices for comprehensive or triple insurance, or even refuse to insure you
Buying a used car: Used cars are usually younger, so the price of full or three types of car insurance will be lower;
Choose an insurance plan that suits you: The price difference between full coverage and three-insurance for a car is significant, so car owners need to choose an insurance plan that suits their actual situation to avoid wasting premiums
Choose your insurance company carefully
Different insurance companies offer "triple coverage" and "comprehensive coverage" plans, which vary in details such as the specific coverage scope, exclusions, and related premiums. You should carefully review the policy details before purchasing. To save time and accurately select the plan that best suits your needs, you can use AWM's auto insurancequote serviceto easily compare prices for comprehensive and triple coverage from multiple insurance companies. Industry professionals will provide immediate answers to any questions about new or old policies, making car insurance no longer a complicated and troublesome matter.