Car Insurance Premiums in Hong Kong
When requesting a quote for a car insurance policy in Hong Kong you will be asked for a number of different details which the insurance company will use to price your coverage.
It is important that you provide the requested information as completely as possible in order to receive the most accurate quote for your Motor Vehicle Insurance policy premium.
Material Facts Required for Car Insurance Premiums
A Material Fact under a Hong Kong Insurance policy is a fact which you must disclose when applying for a plan or requesting a quote.
While insurers will generally consider each case, individually, before providing the terms of their quotation, the information required as part of the underwriting procedure will include:
- The vehicle make and model, including engine capacity and body type
- The year of manufacture
- The vehicle value, if Comprehensive cover is required
For the proposer and all Named Drivers (all regular drivers):
- Age
- Occupation
- The number of years driving experience and in which countries
- Accident and claims history, whether at fault or not
- License offence points and/ or driving convictions
- Physical or mental health conditions which may affect driving ability
- Whether the proposer holds any No Claims Discount
You are obliged to declare all the required information under utmost good faith and declare any and all material facts (facts that may influence the insurer’s risk assessment) when requesting your car insurance quotation comparison.
These material facts and the above listed details will then be used to calculate the premium of your car insurance policy.
No Claims Discounts on Car Insurance Premiums
No Claims Discounts or NCD, also known as No Claims Bonus or NCB, is a reward for a good driving and therefore not claiming under your insurance policy for at least one full policy year.
In Hong Kong, No Claims Discount for private cars is earned as follows:
One full claim free year: 20% NCD is applied to your premium for the following year
Two full claim-free years: 30% NCD
Three full claim-free years: 40% NCD
Four full claim-free years: 50% NCD
Five or more full claim-free years of insurance: the maximum of 60%
This means that, if you do not claim under your Hong Kong car insurance plan, you may be entitled to receive a discount of up to 60 percent off your total policy premium.
Transferring your No Claims Discount
The insurers in Hong Kong will usually talk to each other to confirm your NCD entitlement, and you would usually not be required to obtain a Letter of No Claims (or “Letter of Claims Experience”) if transferring your NCD between insurers within Hong Kong.
It is possible to transfer overseas NCD to a new Hong Kong policy, as long as you hold a No Claims Letter with at least the following information:
- Your name clearly as the policy-holder
- The insurance company name
- The policy number
- The period of insurance and all claims history within that period, or the number of claim-free years stated clearly with the end-date of the policy
The insurers in Hong Kong deem NCD to be valid for one year from the end-date of the last claim-free period. The NCD entitlement can be used on one policy at a time, and as a rule cannot be duplicated or ‘split’ for use on more than one policy at a time. However it is possible for a proposer to hold more than one NCD entitlement. For example, if two vehicles are registered in a person’s name and they have two insurance policies, with two separate claim-free histories, then the individual can have two NCD entitlements.
No Claims Discount is held by the policy holder (whether this is a company or personal name) and does not belong to Named Drivers. NCD cannot be granted to a Named Driver when they are not the policyholder, even if they have been named on a claim-free policy for many years.
It is sometimes possible to transfer NCD from a company name to a personal name and vice versa, if evidence can be provided that the individual is a Director of that company (a copy of the Annual Return, for instance), and if the new policy will have the same Named Drivers. However the NCD cannot then be transferred back again in the future.
Some insurers offer extra benefits for Comprehensive policies, which may include NCD protection, a New for Old clause and a towing service. Some insurers also provide 24-hour roadside assistance similar to AA cover, to varying levels depending on the insurer.
Free Car Insurance Quotes from CCW in Hong Kong
If you would like to receive a free quote for a Third Party or Comprehensive Car insurance policy in Hong Kong all you need to do is complete the simple form at the top of this page, selecting Car Insurance from the drop down menu. Once we have received your request a dedicated Hong Kong Insurance broker will contact you with an extensive quotation comparing all the leading plans currently available. An explaination of this process is available by clicking CCW's Car Insurance Quotations.
You can also learn more information about how Car insurance premiums are calculated in Hong Kong, request additional coverage clarification, or enquire about the types of coverage on offer by Contacting Us Today!
