Understanding the risks of cheap car insurance in Hong Kong
When it comes to buying car insurance in HK, we all want a good deal. This means that a lot of drivers compare car insurance based solely on cost. But, is buying the cheapest car insurance plan really the best choice? Our best car insurance article of the year investigates the reasons behind one of the most commonly asked questions: “Why is cheap car insurance cheap?”, and highlights the top risks to look out for when buying cheap car insurance:
Inadequate coverage: Many of the cheapest car insurance plans on the market provide the bare minimum car insurance coverage required by Hong Kong law, and not much more. This can lead to a lack of proper protection should an accident or collision occur, resulting in higher expenses in the long run.
Paying out-of-pocket: Another popular method insurers use to make premiums look more attractive is to implement high copayments and high deductibles on plans. While this can make your plan a lot cheaper, should an accident happen you may be faced with sky high out-of-pocket expenses (car damage repair costs, for example).
Poor customer support: Employees and computer systems are two areas that often cost companies the most. When buying cheap car insurance, you’ll want to double check that an insurer is not “making up” for their cheap deals with under-resourced customer service support.
Tight claims timeframes: Claims timeframes, which refer to the time window in which policyholders must submit claims following an accident, are, perhaps, the most important aspect of a policy to look out for when comparing car insurance. Some insurers allow as little as three days with which to submit a claim; meaning any claims submitted beyond this timeframe will be rejected.
Fake car insurance: It might sound cliche, but if something seems too good to be true, it might just be. The best way to ensure that you’re not buying car insurance from a fake insurance company is to check that they’re registered with industry bodies like the Professional Insurance Brokers Association, or the Insurance Authority.
7 top tips for reducing your car insurance costs in 2018
“How can I save money on my car insurance?” is likely one of the most commonly asked questions when it comes to renewing or buying a new motor plan. To answer this question, we posted an article on some of the best tactics to reduce car insurance premiums:
Have a clean driving record: If you have a high number of driving offence points, or a history of accidents, your car insurance premiums will likely be higher than those with a clean driving history.
Take advantage of your No Claims Discount (NCD): The maximum amount of NCD for private car insurance in Hong Kong is 60 percent, which represents five years of claims free driving.
Adjust your excess: Generally speaking, the higher your excess, the lower your car insurance premium will be. Approach this with caution, however, as a high excess could lead to costly out-of-pocket expenses should an accident occur.
Pick the right car: The value and make of your car also has an impact on how premiums are calculated. One thing worth noting here is that insurers tend to charge a lower rate for more commonly driven cars (read our article to find out why).
Compare car insurance carefully: Though the temptation of buying the cheapest car insurance is understandable, it can lead to higher expenses in the long run. Therefore, it’s important to compare plans based on more than just cost alone.
Brush up on your auto insurance knowledge: Spending a bit of time to acquire key car insurance knowledge can go a long way in ensuring that you understand what type of plan suits you best. Reading our Kwiksure blog can be a great way to start, as it’s updated by our team of experts on a weekly basis.
Get advice from an expert: It often pays to get the best car insurance advice from an expert like Kwiksure. With almost two decades of experience offering impartial car insurance advice to clients, our advisors are on hand to help you secure the best value auto insurance in HK.How to ensure your claims aren’t inflated after an accident
While the chances of accidents happening are generally pretty slim, they do happen. Having the right car insurance plan will ensure that you are protected, but what happens when insurers or garages don’t act in the best interest of drivers and you end up with an inflated claim after an accident? This article looks at the top things you can do to make sure your claims aren’t inflated after an accident:
Make sure your phone’s charged: This will help ensure that your phone has enough battery to take pictures of the accident, so there’s a clear record of the damages done and all the parties involved.
Install a dash cam: Some insurers will accept dash cam footage when settling claims.
Draw the accident: Accidents can be very traumatic, which is why many drivers don’t remember everything that occurred during the process. As such, drawing the accident can be really helpful in explaining to the insurer and police what happened.
Call your insurer ASAP: If you get into an accident, the sooner you contact your insurer, the earlier your claim gets processed. This also helps ensure other parties involved do not submit inflated claims.
Shop around after an accident: When searching for garages to repair your vehicle, it’s important to ensure that you’re not being overcharged. While insurers will usually cover repair costs at a more expensive garage, the higher payout can mean a higher premium increase vs going with a more affordable garage.
Third party vs comprehensive car insurance: What happens when there’s an accident?
There are three different types of car insurance in HK, all of which deal with accidents differently. One of our best car insurance articles of 2017 looks at the extent of coverage generally offered by third party, third party fire and theft (TPFT), and comprehensive car insurance plans:
Another very important point worth noting here is that, regardless of whether you have a third party or comprehensive car insurance plan, there are a number of scenarios that virtually all insurers will not cover. Some of the most common exclusions include:
Drunk/drug driving
Intentional driving
Street racing
Intentional damage
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