What is Car Insurance?

Car Insurance Hong Kong, Auto Insurance HK

Car owners are financially liable for any accidents, injuries or damage due to their vehicle.

Car insurance, also known as auto insurance, covers vehicle damage and protects vehicle owners financially for injuries or damages they may be liable for. The insurance premium differs depending on the car, driver experience and country.

The insurance is mandatory in Hong Kong to cover and protect third parties from injuries and property damage due to the car owner’s fault.

What is covered?

A comprehensive car insurance policy will cover the following:

  • Accident Vehicle Damage: The insurance will cover repairing damage caused during a collision. The cover includes the other car damage if it was the policyholder’s fault.
  • Third-party Injuries & property damage: The insurance will cover legal, medical, and compensation costs that must be paid when a car causes a bystander injury or damages public property.
  • Natural disaster Vehicle Damage: Financial protection when the car is damaged due to freak accidents. Policyholders can also add fire insurance to cover damage due to fire.
  • Vandalism & Theft: A high-level car insurance will also cover costs related to damage caused by vandalism and loss of vehicle due to theft.
  • Medical Expenses: Some car insurance policies will cover the medical costs of an injured passenger due to a policyholder’s driving accident.

What should you know?

Policyholders must understand car insurance won’t cover mechanical failure or breakdown, rusting or any wear and tear unless due to a collision.

Additionally, the insurance will also not cover if the collision occurred due to a racing or intentional accident.

It is important to understand your specific policy, as each car insurance policy may differ. Basic car insurance will only cover third-party risks, which may not benefit the policyholder as much as a high-level policy.

Having the right car insurance may save you a significant amount, as Hong Kong road accidents are unpredictable and costly.



  • personal property insurance, asset protection insurance, belongings insurance

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