All You Need to Know about Electric Vehicles Insurance
 

Electric vehicles (EV) have seen a surge in popularity in Hong Kong. As of June 2023, there are more than 60,000 electric vehicles on the roads in Hong Kong, accounting for 6.6% of the total number of cars in use. To further promote the adoption of electric vehicles and achieve carbon neutrality, the government has extended the "One-for-One Replacement Scheme" for electric private cars till March 2024. For individuals interested in taking advantage of the tax incentive to upgrade their cars, it is vital to look into EV insurance. 

When it comes to electric vehicles, they are still in the early stages of adoption. Therefore, costs and claims associated with them are naturally higher compared to traditional internal combustion engine vehicles, and this is reflected in the higher insurance premium for EV cars. When applying for insurance, car owners may be required to share mileage data, along with personal information, vehicle specifications and traffic conviction records. By collecting mileage information, insurance providers can assess driving risks more accurately, and potentially reduce insurance costs through a consumption-based model, of which customers only pay for what they use. As a result, more insurance providers are expected to adjust their pricing strategy to factor in mileage data when calculating premiums.

Consider Every Option for Better Coverage

According to the law in Hong Kong, it is mandatory to take out a valid third-party insurance (also known as "three guarantees"). There is also another option known as comprehensive car insurance (otherwise known as "full coverage"), which undoubtedly provides a more thorough protection to car owners. In the unfortunate event of a traffic accident, comprehensive insurance covers not only third-party liability but also loss or damage to both the vehicle and the driver. Many financial institutions require a full coverage plan, especially for those who prefer to pay in installments, to mitigate risk.

For new car owners or recently licensed drivers, it is essential to receive the insurance approval before purchasing the car: it will be frustrating to be denied car insurance after paying in full, or even just putting down the down payment.

When choosing your car insurance, it is important to not be swayed by the cheapest option. Take the time to carefully consider every option and pay attention to key aspects such as insurance coverage, claim procedures, deductibles, third-party claims and additional scope. Insurance providers may incorporate driving restrictions, including terms for designated drivers and authorized repair service centers within the plan. Car owners should evaluate their needs and study the terms and conditions before making the decision, as these restrictions will have an impact on their daily lives.

Extensive Experience in Offering EV-specific Insurance

As a leading global electric vehicle manufacturer, Tesla has deep understanding of the unique requirements of their cars. As Tesla’s designated partner in Hong Kong, Liberty Insurance has developed “InsureMyTesla”, a comprehensive insurance tailored specifically for Tesla owners. This product offers a wide range of benefits including windscreen and glass repair coverage, protection against theft of personal effects due to break-in, no claim discount protection, mobility service benefit and key replacement service.

Additionally, the plan provides liability coverage for private electric chargers, including the cost of charger replacement, accidents caused by the direct usage of designated chargers, and third party property damage, as well as death or bodily injury from accidents caused by designated chargers or private electric chargers, all with no hidden costs involved.

For new Tesla owners registering their vehicles for the first time, the plan even offers a “New For Old Replacement Vehicle” in the event of total loss in an accident or theft. This comprehensive coverage aims to provide peace of mind to Tesla owners.

In fact, Hong Kong is renowned for having one of the most developed and diverse insurance markets, offering a wide range of products to consumers. As a 100% owned strategic business unit of Liberty Mutual Insurance Group which has a global presence spanning across 5 continents and 29 countries and the fifth-largest property and casualty insurer globally, Liberty Insurance has been committed to address concerns of car owners and drivers since its establishment in Hong Kong in 1973. With extensive experience and expertise in the field, Liberty Insurance is equipped with first-hand industry insights and automotive knowledge. By offering dedicated car insurance plans, Liberty Insurance hopes to enable a seamless driving experience with no hassle or fuss.

Discover more about InsureMyTesla