[Car Insurance Comparison] Differences Between Comprehensive and Third-Party Insurance
Comparison of Comprehensive and Third-Party Insurance
Published on: 3 April 2025 | Last Updated on: 3 April 2025 | Reading Time: 5 minutes
[Car Insurance] Comprehensive or Third-Party Car Insurance?
In Hong Kong, it's mandatory for car owners to have third-party liability insurance as a basic form of protection. Do you understand what this coverage entails? What about comprehensive car insurance? Explore the distinctions between third-party and comprehensive insurance to gain valuable insights into selecting the coverage that best suits your needs.
What is Third-Party Liability Insurance?
Third-party liability insurance provides coverage for bodily injury and property damage to third parties in the event of an accident. However, it does not offer protection for the drivers or their vehicle. According to Hong Kong law, all car owners must have third-party liability insurance to avoid fines and imprisonment. Essentially, third-party insurance represents the minimum legal requirement for driving. Typical coverage includes:
- Third-party bodily injury
- Third-party property damage
What is Comprehensive Car Insurance?
Comprehensive car insurance offers extensive protection, protecting not only third-party losses but also the policyholder and their vehicle. While purchasing comprehensive insurance is voluntary, it provides broader protection compared to third-party insurance. It typically includes:
- Medical expenses for the policyholder
- Damage to the policyholder's own vehicle
- Coverage for third-party losses
- Emergency support services
Comprehensive Car Insurance vs. Third-Party Insurance: Coverage Comparison
|
|
Comprehensive motor insurance |
Third Party Liability insurance |
|
Third Party Property Damage |
✓ |
✓ |
|
Third Party Death or Bodily Injury |
✓ |
✓ |
|
Own Damage |
✓ |
☓ |
|
Windshield and window coverage |
✓ |
☓ |
|
Courtesy Car |
✓ |
☓ |
|
No Claim Discount Protection |
✓ |
☓ |
|
Medical Expenses |
✓ |
☓ |
|
New-for-old replacement in first 12 months |
✓ |
☓ |
Key Considerations for Choosing Third-Party or Comprehensive Insurance
Car Excess (Deductible):
The car insurance deductible/excess is the amount policyholder needs to contribute for vehicle repairs car when he/she makes a claim.
No Claim Discount (NCD/NCB):
No Claim Discount/ No Claim Benefit is a premium reduction offered by insurance companies as a reward for maintaining a claim-free record. By avoiding claims each year, you can earn NCD/NCB, resulting in lower premiums.
Choosing Between Comprehensive and Third-Party Insurance:
For older vehicles with high mileage, third-party insurance is often a cost-effective choice. However, if you own a new car or require broader protection, comprehensive insurance is recommended. Consider your financial situation and risk tolerance to decide whether third-party or comprehensive coverage best meets your needs.
Additional Benefits of Allianz Comprehensive Insurance
Allianz Comprehensive Insurance offers additional protection and assistance to provide more protection:
- 24/7 Free Towing Service Hotline
- 24/7 Emergency Roadside Assistance Hotline
- Claims Recovery Service
- Temporary Replacement Vehicle
- New for Old Replacement Car and more…
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