Good Car Insurance Options: 2023 Car Insurance Selection Guide
Read our2025 Car Insurance Guidenow to learn the latest essential car insurance tips!
Is the car insurance coverage good?
Many car owners will likely have different answers, as everyone has different standards. So what exactly are "three-party liability insurance" andcomprehensiveinsurance"? Below, we'll review and explain the 7 major factors that affect the cost of three-party and comprehensive car insurance!
Additionally, AWM comparesHong Kong car insurance options from Allianz, Zurich, Bolttech, Dah Sing, and Ping An Insurance. Comprehensive and three-tiered insurance policies each have different coverage and costs. As for which car insurance is best, car owners need to choose a suitable plan based on their needs and budget. Choosing a reasonably priced car insurance policy with adequate coverage for your beloved vehicle is the key to good insurance.
The difference between "third-party liability insurance" and "comprehensive auto insurance"
Motor vehicle insurance is generally divided into two types: third-party liability insurance (“three-insurance”) and comprehensive motor vehicle insurance (“full coverage”). “Three-insurance” is mandatory insurance. According to Section 4 of the Motor Insurance (Third-Party Risk) Ordinance (Chapter 272), in order to protect against personal injury or death to third parties caused by accidents, the law mandates that all motor vehicle users (including vehicle owners and their authorized users) must purchase third-party insurance for the relevant motor vehicle
"Triple coverage" refers to compensation for personal injury or property damage to third parties other than the car owner/policyholder. This means that "triple coverage" does not cover expenses related to damage to the insured's own vehicle. Comprehensive auto insurance, on the other hand, provides all-around protection. In addition to the coverage of "triple coverage," it also covers losses to the insured vehicle caused by accidents, such as broken windshields, theft due to natural disasters or man-made disasters, and losses caused by typhoons
7 Factors Affecting Car Insurance Premiums
Each year, insurance companies assess various factors to determine premiums, and the weight given to these factors varies from company to company. Premiums are primarily influenced by the car owner, the registered driver, and the insured vehicle. Factors such as the driver's driving experience and age, occupation, driving record, brand and model, and market value all affect the premium and deductible. As for which car insurance company is best, factors beyond just the premium need to be considered!
Four factors related to vehicle owners and registered drivers
Insurance companies assess risk based on a driver's years of driving experience and age. Generally speaking, younger drivers (under 25 years old) may not have a higher risk awareness, and drivers with little driving experience (less than two years) have a higher chance of accidents. Therefore, the younger the driver and the shorter the driving experience, the higher the assessed risk will be. As a result, insurance companies will increase premiums or even refuse to provide quick quotes
A driver's occupation can also affect the level of insurance premiums. Some occupations may be considered high-risk, such as those in the newspaper industry or the entertainment industry, which may have higher premiums due to the higher probability of accidents
Driving record is also one of the factors that insurance companies consider when determining premiums. If the insured has a good driving record, such as no traffic violations and no claims, the premium can be relatively lower
Driving experience (those with little driving experience are considered to have a higher chance of accidents, such as having a license for less than two years)
Age (younger car owners (with 25 years old as the dividing line) do not have a higher sense of crisis compared to older people)
Occupation (Generally speaking, clerical jobs have lower risks and lower premiums)
Driving record (a good driving record, no traffic violations and no claims can qualify for a lower premium)
Three factors for insuring vehicles
Not only car owners and drivers, but vehicle performance also affects insurance premiums. Higher-performance, more powerful cars require more driving skills, so the average person is more likely to have an accident driving these models than family cars or other small cars, resulting in relatively higher premiums. Additionally, expensive sports cars have higher premiums than ordinary entry-level cars. Regarding market value, since insurance companies provide compensation commensurate with the vehicle's value upon resale, a higher market value vehicle will have a higher price
The age of the car (the older the car, the greater the chance of it breaking down)
Vehicle models (higher-performance, more powerful cars are more likely to be involved in accidents than family cars and other small cars)
Vehicle market value (since the insurance company will provide compensation matching the vehicle's value when the vehicle is reimbursed, a higher vehicle market value will result in a higher price)
Car edge protection is good, 3 basic principles
When choosing car insurance, car owners need to keep three basic principles in mind:premium, deductible, and policy riders. These three principles are important references for choosing the most suitable car insurance. The premium refers to the price of the car insurance; car owners need to choose a premium based on their needs and budget. The deductible is the amount that needs to be paid in the event of an accident; car owners need to choose an appropriate deductible based on their financial ability and risk tolerance. Policy riders refer to the scope of coverage and terms of the car insurance; car owners need to carefully read the policy riders to understand the details of the coverage and terms to ensure their rights are protected.
Car insurance premium
As a car owner, annual car insurance premiums are naturally a primary consideration. As mentioned above, car owners can learn about 7 factors that affect premiums. When choosing car insurance, remember to pay close attention to these factors to determine the best option
Base fee
The "deductible," also known as the out-of-pocket expense, is the amount the insured must pay out of pocket in any claim. Many car insurance policies on the market include a deductible, which varies depending on whether the accident was caused by the designated driver or a non-designated driver. It's important to note that young drivers (those under 25 years old), inexperienced drivers (those who have held their license for less than two years), and/or unregistered drivers also have to pay a deductible. If the insured is willing to pay a higher deductible, they can usually pay a lower premium, but they must ensure they can afford the deductible
Many car owners would not lend their cars to the above-mentioned types of drivers, so they only need to compare the "third-party liability" prepayment portion
Additional terms and conditions of the policy
One criterion for choosing a good car insurance policy is the additional terms and conditions included in the policy. While the premium may seem attractive, pay attention to the details of the additional terms and conditions. For example, some insurance companies may require car owners not to lend their cars to young or inexperienced drivers; or the insured vehicle may be limited to the registered driver; or towing services in the event of an accident may require the insurance company to arrange them. Often, car owners are unaware of these terms when purchasing car insurance, so it's advisable to learn more about them to ensure greater peace of mind when using your vehicle on the road
A key comparison of the five major auto insurance companies in the market
| insurance company | Allianz | Zurich | Bolttech | Dah Sing | Ping An Insurance |
|---|---|---|---|---|---|
| No-claim discount protection | Claims not exceeding HK$100,000 within one year | Claims not exceeding HK$50,000 within one year | 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); repairs at designated garages may be up to HK$100,000 or 30% of the insured amount (whichever is lower) |
| No-claim discount rate | 20% after the policy has been in effect for a full year | 30% after the policy has been in effect for a full year | 20% after the policy has been in effect for a full year | 20% after the policy has been in effect for a full year | 20% after the policy has been in effect for a full year |
| Windshield protection | Up to HK$5,000 | Up to HK$4,000 | Up to HK$5,000 | Up to HK$5,000 | Up to HK$3,000 |
| Temporary vehicles | Up to HK$5,000 (daily limit HK$1,000) | Up to HK$4,000 (20% of the rental cost must be paid by the customer) | Up to HK$5,000 (daily limit HK$1,000, 20% of the rental cost must be paid) | Up to HK$5,000 (daily limit HK$1,000, 20% of the rental cost must be paid) | Free (at a designated garage and subject to terms and conditions) |
| 24-hour free towing service | 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