Motor insurance

There are two types of car insurance in Hong Kong

• Third-Party Liability – this is the minimum insurance that you are required to have when owning and driving a car. This insurance covers against the bodily injury and property damage of others.
• Comprehensive Car insurance - includes Third Party Liability and also provides coverage against damage to your own car.

You need to know about depreciation

As cars age, they suffer wear and tear. This means that the value of a car will decrease over time. “Deprecation” is the key factor that impacts the value of a car over time from an insurer’s perspective.

When you make a claim against your car insurance, the insurer will pay claims only after first deducting depreciation. Each insurance firm will calculate “depreciation” differently.

Therefore, when you are buying car insurance, it’s important to check how the insurance firm calculates depreciation. Otherwise, it’s possible that you will end up receiving compensation from the insurance company that is lower than the market value of your car.

As a rough guide, depreciation might be applied as follows:

• 1 year after purchase: 20 to 30% depreciation applied
• 2 years after purchase: 25 to 40% depreciation applied
• 3 years after purchase: 30 to 50% depreciation applied
• 4 years after purchase: 35 to 60% depreciation applied
• 5 years after purchase: 40 to 70% depreciation applied
• 6 years after purchase: 45 to 80% depreciation applied

You can also rely on us if you have a claim against your motor insurance. We will communicate with your insurer and ensure the smooth processing of your claim as well as the correct settlement of claim payments.