【Tesla Car Insurance Comparison】Why is Tesla car insurance particularly expensive? 4 money‑saving tips + full policy comparison and analysis

Before learning about Tesla car insurance, let’s first look at car insurance in Hong Kong. It is mainly divided into third‑party liability insurance (“third‑party”) and comprehensive insurance (“comprehensive” or “full cover”). Under the Motor Vehicles Insurance (Third‑Party Risks) Ordinance, anyone who uses a motor vehicle on Hong Kong roads must purchase third‑party insurance for that vehicle to protect third parties such as passengers in the same vehicle and pedestrians, but it generally does not cover injuries to the driver or damage to one’s own vehicle. If only third‑party insurance is purchased and the car is damaged in an accident, the owner or driver must bear the costs themselves.

Comprehensive car insurance (“full cover”) offers a broader scope of protection. In addition to including third‑party cover, it also covers vehicle damage, medical expenses for the owner or driver, etc., and the premiums are naturally higher than for third‑party insurance. Depending on the terms of different comprehensive policies, some insurers may provide additional coverage, which may be reflected in the premium.  

Car insurance premiums are not fixed; they are affected by a variety of factors, including:

• Personal factors: the owner's age, occupation, driving experience, and past claims and traffic violation records;
• Vehicle factors: these vary depending on the vehicle's model, valuation, and intended use.

In Hong Kong, car insurance features a "No-Claim Discount" (NCD). If no claims are made during the policy period, the policyholder can enjoy a discount upon renewal, and the discount rate increases with the number of claim-free years, typically ranging from 20% to 60%. For example, if a policyholder has five consecutive claim-free years, the renewal discount in the fifth year can reach 60%, effectively reducing premium expenses. 

Insurance premiums for electric vehicles are generally 30% to 150% higher than those for conventional petrol cars, and Tesla car insurance is the “high-price representative” among them. Here are the main reasons:

Expensive repair costs

Tesla vehicles are inherently more expensive, and most parts need to be shipped from the United States to Hong Kong, which raises costs. In addition, Tesla repairs must be carried out at designated service centers or authorized workshops; typical roadside garages usually cannot handle them, and the lack of competition keeps repair costs high. Particularly, some Tesla models use an integrated aluminum-alloy body shell, so even minor collisions may require replacing the entire shell, further driving up repair costs.

Higher accident rate

Electric vehicles have much stronger initial acceleration and performance than conventional petrol cars, and many drivers in Hong Kong are not well adapted to this, leading to a higher accident rate and consequently more frequent claims. Tesla’s high-horsepower design in particular raises its premiums accordingly.

Dah Sing Insurance and Liberty International Insurance are Tesla Hong Kong’s designated partners; the former provides “Third-Party Cover” (“三保”), while the latter provides “Comprehensive Cover” (“全保”). Aside from Tesla Hong Kong’s designated partners, other insurers also offer “Third-Party Cover” and “Comprehensive Cover” for Tesla — below is a comparison of products from six insurance companies. 

Premiums for third-party and comprehensive coverage offered by different insurers vary, with the differences being more pronounced for comprehensive coverage. The lowest premium for third-party coverage is 立橋 ($3,152), while the lowest for comprehensive coverage is Allianz Insurance ($7,708). 

Besides the premium, owners should of course also pay attention to the excess (also called the deductible). Compared with the third‑party excess for other electric vehicles (see further reading for details), the third‑party excess for Tesla car insurance is noticeably higher. Using Bank of China Group’s car insurance as an example: if a BYD SEAL is the insured vehicle, the third‑party property excess when driven by the main driver is HK$15,000, whereas if a Tesla Model Y Standard Range is the insured vehicle it is HK$30,000; for drivers under 25, those who have held a driving licence for less than 2 years, or unnamed drivers, the two products’ third‑party property excesses also differ by a factor of two. Therefore, you need to be extra careful when driving a Tesla to avoid shouldering high costs in an accident.  

Further reading：
【Electric vehicle insurance】Why is it more expensive than traditional car insurance? How do the two types of coverage differ?
What is car insurance? Meaning of third‑party insurance, prices and deductible comparisons
【Comprehensive vs Third‑Party Insurance Comparison】Is buying comprehensive insurance worth it? Which provider offers the best value? 
【Car insurance quick guide】What is NCB? What are the differences between third‑party and comprehensive insurance? 

Although Tesla car insurance premiums are relatively high, owners can still save money using the following methods:

Choose "third-party cover" instead of "comprehensive cover" 

If the owner is willing to accept the risk of vehicle damage, choosing "third-party cover" can significantly reduce premiums.

Control driving mileage 

Tesla can accurately record mileage; if the average daily driving distance is under 130 km, you can avoid mileage-related surcharges.

Maintain a good driving record 

Five consecutive years without a claim qualifies for a 60% no-claims discount, greatly reducing renewal costs.

Restricted driver clause 

Negotiate with the insurer to limit coverage to the owner or designated drivers, thereby further lowering premiums. 

In fact, when the Model S first came to Hong Kong, it initially partnered with Zurich and later with AXA; with a 60% NCD the annual premium at the time was about HK$10,000. Coverage included battery replacement and the terms were quite attractive. AXA later unilaterally terminated the policy in 2018, which became a hot topic in the motoring community and left Tesla owners scrambling to find other insurers.

However, in recent years Tesla car insurance prices have fallen compared with before. For example, as the number of Tesla owners in Hong Kong has increased, more aftermarket suppliers are willing to provide parts for Tesla; more workshops know how to repair Teslas, with repair costs lower than at authorized service centers; and more insurance companies are underwriting Teslas, increasing market competition. As the market further develops, Tesla insurance premiums are expected to continue declining, allowing more owners to enjoy more affordable coverage plans.

Note:
This article was compiled by 10Life from various market sources and is for general reference only. It does not take into account any individual’s needs or suitability and should not be regarded as sales advice. Before purchasing insurance, you should discuss a suitable insurance plan with a licensed insurance advisor and rely on the information provided by the insurance company.
Last updated: 12 September 2025 

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.