【Tesla Car Insurance Comparison】Why is Tesla car insurance particularly expensive? 4 money-saving tips + a comprehensive policy comparison.

Before learning about Tesla car insurance, let us first look at motor insurance in Hong Kong, which is mainly divided into third-party liability insurance (third-party cover) and comprehensive insurance (fully comprehensive cover). Under the Motor Vehicles Insurance (Third Party Risks) Ordinance, anyone using a motor vehicle on roads in Hong Kong must purchase third-party cover for that vehicle. This protects third parties such as passengers in the same vehicle and pedestrians, but generally does not cover injuries to the driver or damage to the vehicle itself. If only third-party cover has been purchased and the vehicle is damaged in an accident, the owner or driver must bear the costs themselves.

Comprehensive motor insurance (fully comprehensive cover) provides wider protection. In addition to third-party cover, it also covers damage to the vehicle and medical expenses for the owner or driver, among other things, so the premium is naturally more expensive than that for third-party cover. Depending on the terms of different fully comprehensive policies, some insurers may offer broader coverage, which may be reflected in the premium. 

Car insurance premiums are not fixed and are affected by various factors, including:

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

In addition, car insurance in Hong Kong offers a “no-claims discount” (NCD). If no claims are made during the policy period, the car owner can enjoy a discount when renewing the policy. The discount rate increases with the number of claim-free years and is usually between 20% and 60%. For example, if the car owner makes no claims for five consecutive years, the renewal discount in the fifth year can reach 60%, effectively reducing insurance costs. 

Insurance premiums for electric vehicles are generally 30% to 150% higher than those for conventional petrol cars, while Tesla car insurance is a particularly high-priced example. The main reasons are as follows:

High repair costs

Tesla vehicles are relatively expensive to manufacture, and most parts need to be shipped from the United States to Hong Kong, increasing costs. In addition, Tesla vehicles must be repaired at designated service centres or authorised garages. Ordinary garages generally cannot handle such repairs, and the lack of competition leads to higher repair costs. In particular, some Tesla models use an integrated aluminium body shell, meaning that even after a minor collision, the entire body shell may need to be replaced, further driving up repair costs.

Higher accident rate

Electric vehicles have significantly superior start-up and acceleration performance compared with conventional petrol cars. Many drivers in Hong Kong are not fully accustomed to this, resulting in a higher accident rate and consequently more frequent claims. Tesla’s high-power design in particular leads to correspondingly higher insurance premiums.

Dah Sing Insurance and Liberty Insurance are Tesla Hong Kong’s designated partners. The former provides third-party insurance, while the latter provides comprehensive insurance. In addition to Tesla Hong Kong’s designated partners, other insurance companies also offer third-party and comprehensive insurance for Tesla vehicles. The following is a comparison of products from six insurance companies. 

Premiums for third-party and comprehensive cover vary between insurance companies, with the difference being more pronounced for comprehensive cover. The lowest third-party premium is offered by Livi ($3,152), while the lowest comprehensive premium is offered by Allianz Insurance ($7,708). 

In addition to the premium, vehicle owners should also pay attention to the excess. Compared with the third-party excesses for other electric vehicles (please refer to the further reading below for details), Tesla car insurance has notably higher third-party excesses. Taking BOC Group’s car insurance as an example, if a BYD SEAL is insured, the third-party property damage excess when driven by the principal driver is HK$15,000, whereas the excess is HK$30,000 for a Tesla Model Y Standard Range. For drivers under the age of 25, those who have held a driving licence for less than two years, or unnamed drivers, the third-party property damage excess for the two products also differs by twice as much. Therefore, extra care should be taken when driving a Tesla to avoid incurring substantial costs in the event of an accident. 

Further reading:
【Electric Car Insurance】Why is it more expensive than traditional car insurance? How do their coverage options differ?
What is car insurance? The meaning, price and excess comparison of third-party insurance
【Comprehensive Car Insurance and Third-Party Insurance Comparison】Is comprehensive cover worth it? Which insurer offers the best value for money? 
【Car Insurance Guide】What is NCB? What is the difference between third-party and comprehensive insurance? 

Although Tesla's car insurance premiums are higher, owners can still reduce costs in the following ways:

Choose third-party cover instead of comprehensive cover 

If owners are willing to bear the risk of vehicle damage, choosing third-party cover can significantly reduce premiums.

Control your mileage 

Tesla can accurately record mileage. If the average daily distance travelled is below 130 kilometres, owners can avoid surcharges resulting from high mileage.

Maintain a good driving record 

Maintaining five consecutive claim-free years entitles owners to a 60% no-claims discount, substantially reducing renewal premiums.

Restricted driver clause 

Negotiate with the insurance company to limit cover to the vehicle owner or designated drivers, thereby further reducing premiums. 

In fact, when the Model S was first launched in Hong Kong, Zurich was initially the partner insurer, before the partnership was subsequently switched to AXA. Based on a 60% NCD, the annual premium at the time was approximately HK$10,000, with cover including battery replacement. The terms were highly attractive. However, AXA unilaterally terminated the policies in 2018, which became a hot topic in the motoring industry and prompted many Tesla owners to urgently look for other insurance companies.

However, Tesla car insurance premiums have fallen in recent years. For example, the number of Tesla owners in Hong Kong has increased, and more independent suppliers are willing to provide parts for Tesla vehicles; more garages have learned how to repair Tesla vehicles, with repair costs lower than those charged by designated repair centres; and more insurance companies are providing cover for Tesla vehicles, increasing market competition. As the market continues to develop, Tesla car insurance premiums are expected to continue falling in the future, enabling more owners to enjoy better-value protection plans.

Note:
This article was prepared by 10Life based on market information collected from various sources and is provided for general reference only. It does not take into account any individual needs or suitability and should not be regarded as sales advice. Before taking out a policy, you should discuss an insurance plan suitable for you with a licensed insurance adviser and refer to the information provided by the insurance company as the basis.
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.