Insurance companies have to assess the risk factors when it comes to deciding the premium for Guangdong vehicles travelling to Hong Kong under a scheme that is set to start next month, according to a lawmaker.

Under the Southbound Travel Scheme that starts with a daily booking quota of 100, drivers have to purchase third-party car insurance for their stays in the SAR, which will be capped at three days.

Chan Pui-leung, who works in insurance, told an RTHK radio show on Friday that the sector is ready to offer short-term products.

"Drivers coming through the Southbound Travel Scheme might be different from those coming from the mainland that hold both mainland and Hong Kong licences," he said.

"These drivers come for a road trip, while those holding double licences may be professional drivers.

"With some 8,000 double-licence cars in Hong Kong, the accident rate stood at about 0.2 percent in 2024, which was relatively low.

"But the rate for those coming through the scheme could be higher, given that they might not be professional drivers."

Chan expects the insurance fee for the left-hand drive vehicles to cost up to HK$1,000.

Given that the figure only accounts for a small amount of travellers' expenditure compare to hotel and driving expenses, Chan believes it will not have a major impact on visitors.