Six most easily overlooked secrets before buying car insurance

Hong Kong car owners often think that "full coverage is all that matters" when purchasing car insurance. However, the actual coverage and future claims outcome depend on whether you pay attention to the details when purchasing insurance! Below are 6 key points that are most easily overlooked to help you avoid pitfalls and choose the most suitable car insurance for yourself

1. Full coverage ≠ all situations covered

• This may not cover some natural disasters, localized thefts, and loss of personal belongings inside the vehicle

• The terms and conditions of "comprehensive coverage" policies vary among different insurance companies, so remember to read the terms carefully

2. Providing false information carries legal risks

• The driver's age, occupation, years of driving experience, vehicle purpose, parking location, and whether there are any modifications are all factors that insurance companies consider when determining coverage conditions, so they need to be declared truthfully

• If the data is incorrect or deliberately concealed, it may lead to denial of claims, cancellation of the policy, or affect future insurance applications if it is discovered

3. Required Key Information

• Primary driver and secondary driver: If there are children or spouses who drive for extended periods, they must be listed.

• Changes in purpose: Part-time delivery, transporting paid passengers, long-term cross-border travel, etc. require written confirmation from the insurance company.

• Parking environment: Open-air, low-lying, and unsecured parking increases the risk. Please truthfully declare your current parking environment to avoid disputes in future claims.

• Modificationssuch as wheels, shock absorbers, audio systems, varnishes, and battery upgrades must be accompanied by invoices and photos, and must be reported to the insurance company.

4. Please note the prepayment/out-of-pocket amount/out-of-pocket payment

• Excessive down payment: This may prevent you from claiming compensation for many losses (such as minor repairs or image damage), increasing your out-of-pocket expenses.

• Too low a down payment: While it can reduce personal expenses, the premium will usually be higher.

5. Details of disaster relief, flooding, and rainstorm protection

• Flood damage may not be fully covered: the policy may have a special deductible or compensation cap.

• Negligence in parking during high-risk weather will reduce compensation: parking in low-lying areas during black rain or Typhoon Signal No. 8, and intentionally driving into standing water are all avoidable risks.

6. Electric Vehicle and Modified Vehicle Owners' Zone

• You need to ask about battery damage, diagnostic fees, calibration fees, etc.: some insurance policies may not cover all of them.

• Battery disposal after water immersion: It is necessary to ask whether the cost of disassembly, inspection, drying, and diagnosis is included to avoid having to pay out of pocket.

• Calculation of market value for high-value modified parts: It is necessary to confirm with the insurance company whether to include them in the market value, or to agree on the value (Agreed Value).

• Take photos and keep receipts for each modification: Create a modification asset list to ensure that there are records to refer to when making a claim.

Quick Insurance Checklist (Essential Before Applying for Insurance)

• Has the list of all drivers been confirmed?

• Are there any special circumstances requiring declaration regarding the intended use of the vehicle?

• Is the parking location considered high-risk?

• Has there been any modification? Have photos been taken and receipts kept?

• Are the down payment and NCD level reasonable?

• Have the electric vehicle batteries or special equipment been declared?

Real Case Sharing

• If the coverage only includes the registered driver, some car owners who failed to declare the co-driver were refused compensation after an accident and had to pay for repairs and NCD losses themselves

Another car owner proactively reported the modifications and successfully received compensation for the high-value parts, with the insurance premium also being reasonably adjusted

AWM provides you with the most reassuring and comprehensive insurance support

Car insurance isn't something you "buy and forget," but rather a risk management tool that requires proactive management and continuous updates. The AWM Car Insurance Consultant team can compare over 65 insurance companies for you, provide expert answers to your questions, and welcome your inquiries anytime to help you drive with peace of mind!