Comprehensive understanding of "Full Protection" and "Three Protections" in one article to understand the differences between the two
What is car insurance/full coverage?
Car insurance is mainly divided into "third-party liability insurance" and "comprehensive insurance". Third-party liability insurance refers to insurance that provides compensation for personal injury and property damage to third parties other than the car owner/policyholder. Hong Kong law stipulates that all car users (including car owners and users authorized by the car owner) must have third-party liability insurance for their vehicles. Otherwise, they may be fined HK$10,000 and imprisoned for twelve months, and may also have their driving license suspended for 12 months to 3 years
As for "comprehensive coverage", it refers to comprehensive car insurance, which, on the basis of the "three insurances", also protects the car owner and the car itself. Therefore, if you want comprehensive protection, you should consider purchasing comprehensive car insurance
Comparing the coverage of "three-insurance" and "comprehensive" car insurance
| Insurance Project | Car three-year maintenance | Full coverage car insurance |
|---|---|---|
| Property loss, death or bodily injury | ✓ | ✓ |
| Damage to insured vehicle | ✗ | ✓ |
| Medical expenses | ✗ | ✓ |
| First-year trade-in guarantee for all new cars | ✗ | ✓ |
| 7-day temporary replacement vehicle guarantee | ✗ | ✓ |
| No-claim discount protection | ✗ | ✓ |
| Lost car keys | ✗ | ✓ |
The premiums for the three types of car insurance are reasonable, but there is a risk of high out-of-pocket expenses
The three types of coverage in car insurance only provide protection against property damage and personal injury caused by third parties, and do not include vehicle damage or the driver's medical expenses. Therefore, car owners need to bear the costs of vehicle damage and their own medical expenses
Suppose a car owner purchases third-party comprehensive auto insurance and is involved in a car accident, in which both the owner's vehicle and the other vehicle are damaged, and the owner is also injured. According to the coverage of the third-party comprehensive insurance, the insurance company will provide corresponding compensation for the damage to other vehicles and the medical expenses of other injured persons
However, since car owners only purchase basic insurance (including three types of coverage), auto insurance does not cover the owner's own vehicle repair costs or medical expenses. The owner must bear these expenses themselves. If the vehicle damage is severe, requiring expensive repairs, or if the owner's injuries require long-term medical treatment, these costs can be quite high
Therefore, when purchasing comprehensive car insurance, car owners may face the risk of incurring high out-of-pocket expenses, especially in the event of a serious car accident or injury
Comprehensive insurance premiums are high, but it fully protects the interests of car owners
Although the premium for comprehensive insurance is higher than that for basic insurance, it offers broader coverage and more comprehensive protection for car owners' interests. Comprehensive insurance covers property damage and personal injury as covered by basic insurance, and also includes coverage for the car owner's own vehicle
In addition, comprehensive insurance also includes coverage for the car owner's medical expenses. If the car owner is injured in an accident, comprehensive insurance can pay for the corresponding medical expenses, including medical treatment, hospitalization costs, and possible rehabilitation costs. This provides car owners with more comprehensive protection, ensuring proper handling of both vehicle damage and personal injury, reducing financial pressure
Other considerations for choosing full coverage or triple coverage
In addition to the coverage and premium of car insurance, you should also pay attention to other details of full coverage and triple coverage
No-claim discount (NCB/NCD). A no-claim discount means that if the insured has no claims in the past, the insurance company will give a corresponding discount, reducing the premium. When considering the premium, you can pay attention to how much discount your no-claim discount (NCB/NCD) will bring you, and then decide whether to choose comprehensive car insurance or basic car insurance
The deductible, commonly known as the "deductible," is an additional fee that the policyholder must pay when making a claim. For example, if a car owner claims $30,000 and the policy includes a $5,000 deductible, the policyholder must pay the $5,000 deductible first, and the remaining $25,000 will be covered by the insurance company. Generally, the deductible is waived for most car insurance policies (including the first, third, and fourth coverages), but for comprehensive insurance, the specific deductible varies depending on the individual insurance company and requires careful attention
Insurance companies may offer additional services and coverage depending on the specific comprehensive or triple coverage plan, such as roadside assistance, glass breakage protection, and rental car coverage. Car owners should evaluate whether these additional options meet their needs and inquire with the insurance company about the details
The difference in premiums between comprehensive insurance and triple insurance
40-year-old clerk with 10 years of driving experience and 60 NCD
| Honda Jazz 2019 | Toyota Spade 2020 | Audi A3 2020 | |
|---|---|---|---|
| Car insurance premium | HK$1,380 | HK$1,280 | HK$1,280 |
| Full coverage car insurance premium | HK$2,680 | HK$2,380 | HK$3,180 |
27-year-old clerk, 3 years of driving experience, 0 NCD
| Honda Jazz 2019 | Toyota Spade 2020 | Audi A3 2020 | |
|---|---|---|---|
| Car insurance premium | HK$1,380 | HK$1,280 | HK$1,280 |
| Full coverage car insurance premium | HK$2,680 | HK$2,380 | HK$3,180 |
Choose the right car insurance based on your personal needs and affordability!
Different auto insurance companies offer varying coverage, exclusions, and premiums for their "three-insurance" and "comprehensive insurance" policies. It's essential to carefully review the policy details before purchasing. Choose the appropriate type of auto insurance based on your individual needs and affordability. For a more time-efficient and precise selection of the plan that best suits your needs, you can utilize AWM's auto insurance quote service. This allows you to easily compare prices from multiple insurance companies for three-insurance and comprehensive insurance, with industry professionals providing immediate answers to any questions about new or old policies. Auto insurance is no longer a complicated and troublesome matter