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Can a Car Insurance Plan be in a name other than registered owners'?


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Q:

I would like to obtain a car insurance plan for my wife’s new Honda CRV (second hand). She is the registered owner of the car but can I obtain the insurance on the car in my name with her as the registered owner as I would like to use my NCD on the insurance?

A:

Generally, Hong Kong Insurance companies will require that the insurance coverage on the vehicle is under the name of the vehicle owner. In the event that you would like to take out insurance on your wife’s new car and use your existing NCD (No Claims Discount) on the policy you would need to transfer the ownership of the vehicle into your name.

Unfortunately, due to the fact that you must show proof of insurance when registering or renewing a vehicle license with the Transport Department, the insurance will need to be in the name of the registered owner – if this is not the case then the Transport Department will normally reject the application for the vehicle license until proof of insurance for the registered owner is provided.

The only way for you to use your NCD on the Honda, in this case, would be to transfer ownership. It is important to note, however, that a No Claims Discount can only be used on a single vehicle – so if you obtained ownership of your wife’s car and used your NCD on the Honda, any car which is currently receiving your NCD bonus would have that removed.

If you will be driving your wife’s car regularly it is possible to add you as a Named Driver on the policy and avoid any deductibles which would apply for an Unnamed Driver in the event of an accident. But without a wholesale transfer of ownership there is no way for you to use your NCD on your wife’s car.

Should you have any additional questions please feel free to Contact Us and speak with an expert broker today. 


Answered on: 22 December, 2016 09:02


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Car Insurance Hong Kong