As a car owner, you must have heard about Third Party Car Insurance and Comprehensive Car Insurance. However, do you know the differences between them? Want some tips on choosing your car insurance? Today, HoldCover will spell out several things you should know about Car Insurance.
1. Third Party Car Insurance VS Comprehensive Car Insurance
It is compulsory to buy a third party car insurance plan for running a car in Hong Kong. According to Section 4 of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap 272), it shall not be lawful for any person to use, or to permit any other person to use, a motor vehicle on a road unless the vehicle concerned is covered by valid third party risks insurance; offenders shall be liable to a fine of HK$10,000 and to imprisonment for 12 months on conviction. As the name itself says, third party car insurance only covers you against liabilities arising from bodily injury, loss and damage to a third party in the event of an accident, but not your own loss, damage and medical expenses.
A comprehensive car insurance plan, on the other hand, offers you and your car enhanced benefits, such as own damage of vehicle, medical expenses and windscreen protection. Here are the differences between Third Party Car Insurance and Comprehensive Car Insurance:
2. Excess is as important as coverage
An excess, as known as a deductible, is a predetermined amount that a policyholder should pay in advance for any claims regarding damage or loss of the motorcycle. Normally, you can choose the amount by yourself. For example, if a claim is HK$20,000 and the excess is HK$10,000, the policyholder is responsible for the initial HK$10,000, and the insurer will pay for the rest.
3. What is NCD/ NCB?
NCD (No Claim Discount) a.k.a. NCB (No Claim Bonus), is a premium discount reward for policyholders who never apply for claims for every consecutive year. The maximum NCD for private-use vehicles is different from business-use vehicles, and the discount is non-transferable:
4. How to buy a suitable motorcycle insurance policy at the best price effortlessly?
With HoldCover’s one-stop insurance online platform, you don’t have to spend a lot of time getting quotes from different insurers anymore. Whether you are looking for third party or comprehensive car insurance, you can get instant quotes, compare policies and buy the one that fits you best on HoldCover as we offer a wide range of car insurance products.
Click here to get quick car insurance quotes for free!
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Wave goodbye to the old-fashioned and confusing way of insurance and say hello to HoldCover, an online insurance platform where you can easily compare similar policies across different insurance companies. You can identify what’s best for you by optimising for cost, coverage and other perks. Our online platform is 24/7 which means you can shop and manage your insurance at anytime and anywhere.
