Private motor insurance is designed to cover loss or damage to your car and liability to third parties. However, coverage varies according to the policies.
Private motor insurance provided by insurance companies generally includes third-party liability insurance and comprehensive motor insurance with different scopes of coverage. Third-party liability insurance is compulsory and the use of motor vehicles on roads in Hong Kong is subject to a statutory requirement for motor liability insurance. In addition to third-party liability insurance cover, comprehensive motor insurance also covers loss or damage to the policyholder’s vehicle resulting from flood, fires, traffic accidents, theft, etc. Therefore, the premium of comprehensive motor insurance is generally higher than third-party liability insurance.
The premium is calculated in accordance with a set of data including the policyholder’s age, occupation, driving experience, the type of cover chosen, the type and valuation of the vehicle, as well as past claim history and traffic conviction records.