Author
Bowtie Team
Updated on
2025-07-10
Disclaimer: This article is translated with the assistance of AI.
Tesla electric vehicles are booming in Hong Kong, with over 14,000 on the roads by late 2020, per Transport Department data. But many owners are shocked by the high premiums and struggle to find coverage. Wondering how electric car insurance differs from standard auto insurance, or what Tesla’s exclusive “InsureMyTesla” entails? Bowtie breaks it down for you—get the insights to drive smarter!
Discussions on Tesla Insurance in Hong Kong Forums
Is it hard to buy insurance for secondhand Tesla?
Online discussion forums often have people mentioning Tesla is difficult to purchase car insurance , or that premiums are very expensive .
For example, LIHKG Discussion Forum once had a netizen mentioning their driving license age reached 20 years, working in IT , with NCB (No Claims Bonus) accumulated to the maximum 60% . But after buying a second-hand Tesla Model 3 , they found that all insurance companies couldn’t provide online quotes and needed to leave contact details for a specialist quote.
I thought it was as simple as just paying, but it was unexpected and troublesome that I had to compare and contrast plans from each company.
Netizen
Many comments expressed surprise, but others mentioned facing similar issues. Some comments suggested that certain Tesla drivers have less than ideal driving habits: “ It’s gotten to the point where no insurance company wants to cover Tesla vehicles anymore, and even if they do, it’s very expensive ”.
The person who bought the second-hand Tesla Model 3 later shared that they received quotes, but the comprehensive insurance and third-party insurance premiums were HK$18,000 and HK$5,000 respectively, with an excess fee of HK$25,000 , more than double the average premium for regular vehicles .
Other Key Discussions on Tesla Insurance
Why High Tesla Prices Deter Insurance Companies?
In 2018, many Tesla car owners received notifications from insurance companies that they would unilaterally terminate their auto policies, leaving many owners unexpectedly out of coverage.
At that time, netizens on discussion forums complained that due to the excessively high compensation involved with Tesla vehicles, insurance companies decided not to cover them anymore. That netizen also mentioned that when he sought coverage from other companies for his Tesla , the quotes were not only 30-40% more expensive than normal premiums, but the excess was also in the six figures.
High Insurance Premiums and Excess for P-plate Tesla Owners?
Some young new drivers expressed a desire to buy a Tesla as their vehicle, but they are under 25 years old and haven’t yet removed their P-plate, so they’re worried that even if a company is willing to insure them, they’d have to pay high premiums.
Some comments suggested that new drivers determined to buy a Tesla might find no company willing to insure them, especially without NCB (No Claims Bonus), insufficient driving experience, or age. However, others pointed out that if they’re willing to pay the steep premiums and high excess, an insurance company might still cover it.
Differences Between Electric Vehicle Insurance and Car Insurance
According to the Motor Vehicles Insurance (Third Party Risks) Ordinance (Chapter 272 ), Section 4 , all vehicles used on the road must have valid third-party motor vehicle insurance, commonly known as third-party insurance or ‘three protections’, otherwise it is illegal. Insurance companies in the market also offer comprehensive motor insurance that provides more coverage, commonly known as ‘full coverage’.
Electric vehicle insurance and car insurance can both be divided into third-party insurance and full coverage, but there might be slight differences in some terms. For example:
- Electric vehicles can include coverage for personal charging equipment
- Standard car insurance doesn’t have this coverage since regular cars don’t require charging
Some electric vehicle owners might use private chargers for convenience. Owners should check if their electric vehicle insurance’s ‘charger liability coverage’ only includes the original manufacturer charger or also covers private ones. If it only covers the original, owners might consider adding coverage for personal charging equipment.
Additionally, because it’s harder to tamper with the odometer on electric vehicles and many manufacturers collaborate with insurance companies, insurers often treat the odometer reading as the true mileage to determine premiums or deductibles.
Finally, some insurance companies add clauses to electric vehicle insurance that are typically seen in sports car policies, such as restricting drivers to named individuals only, meaning no one else besides the named driver can operate the vehicle.
Tesla insurance or electric vehicle insurance can protect you against third-party injuries and property damage caused by accidents, or losses to your vehicle from traffic accidents, fire, or theft, but it won’t cover your personal injuries .
Accidents can vary in severity; for minor injuries, outpatient treatment might suffice, and the costs could be manageable. But if surgery is needed, health insurance or accident insurance can provide the protection you need without out-of-pocket expenses!
Bowtie VHIS offers annual coverage for surgery and outpatient treatment ranging from HK$420,000 to HK$10,000,000. For example, a 30-year-old non-smoking male opting for Bowtie VHIS Flexi Regular could have monthly premiums as low as HK$200.
Want to Buy More Coverage for Yourself?
Tesla’s Exclusive Insurance for Owners: What It Covers?
Nowadays, many insurance companies offer Tesla car insurance. And InsureMyTesla (or known as “My Tesla Insurance”) is launched jointly by Tesla and a Hong Kong insurance company, serving as the official car insurance for Tesla . Tesla handles the service arrangements and acts as an intermediary, while the insurance is underwritten by the insurance company.
This company has been offering Tesla car insurance since 2014 , until June 2018 when it was appointed by Tesla as the insurance agent, and now it is the authorized insurance company for “My Tesla Insurance.”
InsureMyTesla Coverage
Assuming the insured vehicle is a standard range 2022 Model 3 , the policyholder is 35 years old with 10 or more years of driving experience in Hong Kong, enjoys 60% NCB (No Claim Discount) , and has not been involved in any criminal driving offenses, had their driving license suspended in the past 5 years or been in any traffic accidents or made any car claims in the past 3 years, the premiums and coverage for InsureMyTesla will be as follows:
| Basic Plan | Recommended Plan | Superior Plan | |
| Premium * | HK$7557.58 | HK$8557.58 | HK$9057.58 |
| Third-Party Property Damage Coverage | HK$5 million | ||
| Charger Liability Coverage | HK$20 million | ||
| No Claim Discount Protection
(Discount of 30% or more) |
HK$100,000 or 20% of the value (whichever is lower) | ||
| Personal Accident Compensation | HK$350,000 (for the insured driver)
HK$50,000 (for passengers) |
||
| Auto Glass Coverage | HK$10,000
With a HK$3,000 excess |
HK$10,000
With a HK$2,000 excess |
|
| Personal Belongings Coverage | HK$5,000 (per year), up to HK$20,000 during the policy period | ||
| Auto Loan Coverage | Up to HK$150,000
If the policyholder dies accidentally, compensation up to 80% of the outstanding Tesla auto loan will be provided |
||
| Key Replacement | HK$250 per card, up to 2 key cards per policy period | ||
| 24-Hour Emergency Towing Service | ✔ | ||
| Travel Services | Up to HK$5,000,
Up to 10 days of substitute vehicle or taxi/subway/other transportation compensation per policy period |
||
| Legal Consultation | Up to 1 hour | ||
* Does not include premium levy and Motor Insurers’ Bureau additional levy
*The quote is only valid if the following conditions are met: 1) The vehicle is not currently insured by the specified policyholder with Liberty International, 2) The terms, conditions, and exclusions of the company’s standard policy, 3) The vehicle is equipped with a factory-installed alarm, 4) If any changes to the initial online information submitted, the final premium amount must be revised, 5) The vehicle is not used for carrying passengers or goods for a fee, 6) The specified policyholder provides proof of Tesla mileage and Tesla’s mileage confirmation letter. If the claimed mileage differs from Tesla’s provided mileage, we reserve the right to modify the initial quote and 7) Does not include coverage for disciplinary forces on duty
InsureMyTesla Excess Fees
| Basic Plan | Recommended Plan | Superior Plan | |
| Standard Excess | HK$25,000 | HK$15,000 | HK$10,000 |
| Windshield Excess | HK$3,000 | HK$2,000 | |
| New Owner Additional Standard Excess | HK$10,000 | ||
| High Mileage Additional Standard Excess | HK$50,000 | ||
| Young Driver Excess | HK$10,000 | ||
| Inexperienced Driver Excess | HK$10,000 | ||
| Unnamed Driver Excess | HK$20,000 | ||
| Theft Excess | HK$5,000 | ||
| Third-Party Property Damage Excess | HK$10,000 | ||
| New Owner Additional Third-Party Property Loss Excess | HK$10,000 | ||
^ Applies to Tesla body damage and third-party legal liability
&Applies to Tesla body damage
#Applies to third-party legal liability
%If the driving record exceeds 130 km per day at the time of claim, a HK$50,000 excess will apply
@Applies only if the claim occurs within the first six months of vehicle ownership
How to Insure Your Tesla?
You can Tesla find InsureMyTesla – My Tesla Insurance in the support services on the Get a Quote , and the related insurance process is as follows:
- Fill in vehicle details
- Fill in policyholder details
- Fill in driver details
- Complete driver declaration
- Get a quote and choose the plan you want to purchase
- Verify policy details
- Make payment
Key Features of InsureMyTesla
The standout feature of InsureMyTesla is its vehicle insurance plan designed based on the owner’s mileage , allowing policyholders to enjoy more economical premiums according to the actual kilometers driven—something not always available in standard auto insurance.
New Tesla owners are considered ‘low-mileage users’ and get discounted premiums in the first year, while existing Tesla owners can have premiums calculated based on their actual driving mileage.
Low-mileage users are typically typical Hong Kong drivers who:
- Hold a 60% no-claims discount
- Drive 15,000 to 20,000 kilometers annually
- Have not made any claims in the past year or more
Their no-claims discount starts at 20% and increases by 10% each year, up to a maximum of 60% .
Other key features of InsureMyTesla include:
- Use of original manufacturer parts
- Comprehensive coverage for Tesla vehicles damaged in accidents
- Replacement with a new vehicle if your Tesla is written off (within 12 months from the official delivery date)
- Optional add-on for cross-border coverage in Guangdong Province
What Information Do You Need to Get a Quote?
InsureMyTesla allows you to get a quote directly online, just head over to Related Website , and fill in the following details to get your quote right away:
Vehicle Information
- Year of manufacture
- Model (Model 3 / Model Y / Model X / Model S)
- Variant (depending on the model, options include standard, long-range, long-range Plus, Performance, RWD)
- Vehicle Identification Number (if you haven’t ordered the vehicle yet, you can use ‘11111111111111111’ as a placeholder)
- Has the vehicle been registered in the policyholder’s name with the Hong Kong Transport Department?
- Method of payment for purchasing the vehicle
Policyholder Information
- Name
- Address
- Email address
- Phone number
Driver Information
- Policyholder’s no-claims discount (0-60%)
- Policyholder / primary driver’s name (or company name)
- Customer type (individual or company)
- Policyholder / primary driver’s date of birth
- Policyholder / primary driver’s years of driving experience in Hong Kong
- Policyholder / primary driver’s driving demerit points in the past two years
- Will the policyholder drive the vehicle?
- Number of specified drivers
- Other drivers’ names, dates of birth, years of driving experience in Hong Kong, and driving demerit points in the past two years (if more than one specified driver)
Driver Declaration
- In the past 5 years, have any of the above drivers been charged with criminal driving offenses?
- In the past 5 years, have any of the above drivers had their driving licenses suspended or had their driving privileges revoked?
- In the past 3 years, have any of the above drivers been involved in any traffic accidents or losses, or made any auto claims?
- Do any of the above drivers have conditions such as heart disease, diabetes, epilepsy, or mental health issues?
- Will this vehicle be used for carrying passengers or goods for a fee?
- Do any of the above drivers require coverage for cross-border driving in Guangdong Province?
💵 Why is Tesla Car Insurance So Expensive?
You know, car insurance premiums are usually determined by factors like the policyholder or driver’s age, occupation, driving experience, traffic violation records, the insured vehicle’s model, and its valuation. However, Tesla car insurance premiums are significantly higher than the average.
Looking at the Insurance Authority’s figures from 2020, the average premium for all vehicles in Hong Kong (including private cars, vans, and taxis) is HK$ 5,056 , and Tesla’s official insurance premiums are generally well above that figure .
For example, even with the highest 60% no-claims discount and a stellar driving record while opting for the basic plan, the premium is still about 50% more than the average car insurance cost. I bet many policyholders end up with quotes that are over double—or even more!
There are mainly two reasons why Tesla car insurance is pricier than the typical option:
- 💵 Expensive Repair Costs
When a Tesla is involved in an accident, repairs often require a visit to a designated service center or authorized body shop—your average garage might not cut it, which naturally drives up prices due to limited competition. Plus, Teslas are pricey to build, so non-OEM parts are scarce, and repairs might involve shipping components from the US to Hong Kong, adding to the costs. On top of that, some Tesla models use an integrated aluminum alloy body, meaning even minor damage could require replacing the entire shell, further hiking up expenses.
- 🚦 Driving Habits
Electric cars like Tesla are still new to many Hong Kong drivers, and since they accelerate faster than gas-powered ones, it’s easy to mishandle them and get into accidents. This higher claim rate means insurers have to jack up premiums to cover the added risk.
That said, there’s hope for lower Tesla premiums down the line—here’s why:
1. More Teslas on the Road
As more Teslas roll off the production line over time, third-party manufacturers are creating more affordable parts, giving you cheaper options for repairs.
2. Some Tesla Models No Longer Use Integrated Body Shells
The Tesla Model 3, for instance, has moved away from integrated body shells, so accidents involving body damage won’t always mean replacing the whole thing, which could cut repair costs.
3. Hong Kong Drivers Are Getting Used to Electric Cars
With electric vehicles becoming more common in Hong Kong, drivers are adapting to their unique features, potentially reducing accident rates.
4. More Garages Are Learning to Repair Teslas
As more repair shops gain the skills to fix Teslas, increased competition could help drive down repair fees.
5. Tesla’s Shanghai Factory Is Making a Difference
Tesla’s Shanghai plant should lower manufacturing costs, repair part prices, and shipping fees, bringing overall expenses down.
6. Tesla’s New Insurance Model Could Help
This innovative insurance approach, first launched in the US, bases monthly premiums on real-time driving behavior, which might lead to lower costs for safe drivers.
US Tesla Insurance Model: Could Hong Kong Benefit?
Tesla announced in 2019 that it would establish its own insurance company in the US to provide car insurance for Tesla vehicles. The standout feature of Tesla’s in-house car insurance is that, unlike Traditional Car Insurance , it doesn’t base premiums on factors such as the driver’s age, driving experience, car model, or driving record. Instead, it uses “real-time driving behavior” to set premiums.
What this means is that Tesla monitors risky driving behaviors in real time, such as the number of collision warnings, hard braking, or forceful disengagements from autopilot per thousand miles, to calculate the driver’s Tesla safety score. This score then determines the insurance premium.
Tesla claims that their in-house insurance can be 20-30% cheaper than competitors. As of July 2022, Tesla offers car insurance in 11 states in the US.
Many Tesla owners in Hong Kong would love more insurance options, including this Tesla plan. However, Tesla’s current goal is to provide insurance to 80% of US Tesla owners by the end of 2022 before expanding outside the US, so Hong Kong drivers will have to wait a bit longer to access it.
Common Questions on Tesla and Electric Vehicle Insurance
1. Are electric vehicle insurances, besides Tesla, generally more expensive? Why?
Electric vehicle manufacturers aren’t just limited to Tesla ; there are other options out there. However, insurance for these other electric cars is still typically more expensive than for regular vehicles.
One reason electric vehicle insurance is pricier is the limited number of repair shops that can handle them, which reduces competition and drives up repair costs—and thus premiums. Additionally, electric cars aren’t as widespread in Hong Kong yet, so drivers used to traditional cars might not be fully accustomed to their powerful performance, leading to higher accident rates and the need for insurers to charge more.
2. What methods can lower Tesla or electric vehicle insurance premiums?
- Opt for third-party insurance only:
While comprehensive coverage offers more protection, it’s also pricier. If you’re confident in your driving skills, consider third-party insurance to save on premiums. - Reduce mileage:
Electric cars have less opportunity for mileage tampering, so insurers track it closely. Lower your annual mileage to avoid excess charges—for instance, with InsureMyTesla, aim to keep daily average mileage under 130 kilometers. - Build up no-claim bonuses (NCB):
Try to avoid making claims to accumulate the maximum 60% no-claim discount, which can significantly cut your car insurance costs. - Wait until you’re off your provisional license or have enough driving experience:
Drivers with a provisional license (P-plate) or limited experience often face higher premiums. Waiting until you’re fully licensed or have more experience can lead to lower rates. - Request driver restrictions from your insurer:
You can ask your insurance company to add restrictions, like coverage only when the owner or named driver is behind the wheel, to negotiate a lower premium. - Compare quotes from different insurers:
Coverage and premiums vary between companies, so shop around to find the most suitable and affordable plan for your needs.
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