This Guide Includes
Insurance is one of the most crucial need of today. We can’t even predict if any mishap occurs while traveling or something unfortunate happens and we can’t stop it. But we can take some cautions to protect ourselves from the upcoming situations.
Nowadays there is nothing which can’t be insured. One can insure life, health, property, assets, everything. Auto insurance in Kenya is the latest trend these days. As Kenyans are keen travelers, they pick up their cars and love to party, explore places and have fun. Thus, car insurance is must in Kenya. But the people of Kenya have obscurity in the insurance field. Motor Insurance is an important concept which every motorist must know about.
Car Insurance Kenya comprises of three important categories: third-party liability insurance, third-party theft & fire, and comprehensive car insurance.
Third Party Only Insurance:
The “third party car insurance policy” covers damage to a third party as a result of any collision or accident which was deemed to be your fault. But in such coverage, the insured is responsible for any damage to his own car and can’t claim for anything in this kind of policy. You can read more about third party car insurance in kenya here.
Third Party Fire & Theft:
The “third party fire & theft insurance policy” refers to the coverage which typically lets the insured claim for:
- replacing your car in case of stolen.
- recovering the financial loss for the fire damage to the car
- any kind of damage to your car as a result of attempted theft
As per Kenya laws, third-party liability insurance is the most important car insurance in Kenya. But a comprehensive car insurance has its own significance and benefits.
A comprehensive coverage is the top level coverage that an individual can get for his vehicle and is the highest protection required by your vehicle.
Here is a complete guide to Comprehensive Auto Insurance where you can learn about different coverage aspects of comprehensive insurance and thus, make an informed decision to opting for such insurance for your vehicle.
What is Comprehensive Car Insurance?
Insurance Law and Policies vary from company to company. Each company provides some certain coverage options to the insured as a result of any physical damage or loss to the car. A comprehensive car insurance in Kenya, also known as a fully comp. insurance covers for all types of risks other than caused by fire, theft, floods, earthquake or any natural disasters. Any damage to your car due to these factors will not be covered by your insurance company.
Natural calamities can’t be predicted. People who live in flood zone, or in such a place prone to earthquakes, rock sliding, Tsunami etc have to suffer huge economic losses when encountered. This is where Comprehensive Insurance is proved to be beneficial.
It is a complete coverage with which an individual is covered for the financial loss in incidents like of damage from fire, vandalism or any climatic factor like rock sliding, falling of trees, earthquakes etc. Moreover the people who lease or finance cars is advised to purchase such of insurance to protect it from any kind of damage.
Types Of Comprehensive Car Insurance Kenya
Comprehensive Car Insurance in Kenya is basically divided into two major types:
- Comprehensive coverage
- Collision coverage
Comprehensive Coverage: Under comprehensive coverage plan, the insurance company compensates the amount to repair any kind of damage to your vehicle as a result of any event like climatic destruction, floods etc.
Collision coverage: Under the collision coverage policy, the insurance company pays the insured for damage or loss due to any kind of collision. It can be either if your insurance company pays for damage to your auto when you collide with another vehicle or object.
Difference Between Collision and Comprehensive Insurance?
Collision Coverage helps to cover the loss in case of any collision of your vehicle as a result of an accident or any incident. Whereas Comprehensive coverage is the type of coverage that covers other types of losses.
Comprehensive Insurance vs. Collision Insurance
|Comprehensive Car Insurance is an all-inclusive coverage that provides coverage against damage other than collision.||Collision coverage is considered the most important to protect your vehicle or car against any type of physical damage.|
|Comprehensive Coverage is applicable in following cases:
||Collision coverage covers the losses described below:
|This type of coverage offers reasonable to purchase.||The cost of collision insurance is much higher as compared to Comprehensive Insurance.|
|Low Deductibles||As the insurance type is expensive so people opt to higher deductibles to low down the cost.|
|Such insurance policy can be purchased standalone as well as with a combination of collision.||There is no benefit to buy such a policy alone. It is must to combine it with comprehensive or liability insurance plans.|
What does fully comprehensive mean on a car?
Comprehensive Car Insurance is also referred as Fully Comp cover which provides the overall coverage to the insured and is referred as the top-level insurance that can be given to the insured by any insurance company.
With Comprehensive Coverage, the insurance companies cover your car inclusive of the third party damage. There are three types of cases where comprehensive motor insurance is applicable:
- Where it is your fault:
You can claim for the financial coverage to repair your vehicle along with the third party damage even if the accident is deemed to be your fault. The company pays off all the loss as per policy norms.
- Where fault can’t be proven
In case, if your car is hit by someone but the fault can’t be proven. Yo0u can still claim for repairing cost from your insurer. These ‘Hit-N-Run” cases are normal these days. You don’t need to be worry if you have purchased comprehensive motor insurance for your vehicle.
Comprehensive Insurance quotes are often not cheap but you can lower down the cost of this policy using some smart ways. And if you want to save money then don’t compromise with the insurance plans. Rather there are multiple ways to reduce the comprehensive auto insurance rates.
What does comprehensive auto insurance cover?
Your comprehensive car insurance covers all the risks that are a result of any accident unrelated to any kind of collision. Here are the covers that are being insured in this policy:
- Loss or damage caused by a collision or crash.
- Loss due to Theft, vandalism, accidental damage
- Loss or damage caused by fire.
- Loss or damage due to storm or flood, or any natural calamities.
- Replacement by a new Vehicle in case if your car is classified as Written-Off in policy registration.
What is not covered?
There are a number of risks which a motorist can face while driving. The insurance companies recover few of those financial risks in different type of insurance policies.
Presented above were the covers which are covered in Comprehensive insurance . Notably, some losses are not covered by car insurance in kenya. These are mentioned below:
1. Breakdowns Arising from Wear and Tear.
2. Intentional Damage
3. Personal Injuries
Cost of Comprehensive Insurance in Kenya
A comprehensive car insurance is not a mandatory but a desirable policy plan in Kenya and it is completely your choice whether you want to buy or not. Buying this kind of insurance is safer as well as profitable for the car owners who finance or lease cars.
Opting for comprehensive car insurance provides a wide coverage for the damage or financial loss resulting from hijacking, fire, natural disasters and road accidents. Additionally, the insured is also recovered for the loss or damage from a third party in case of an accident.
Different insurance firms have different policy norms. Generally, the cost of comprehensive motor insurance in Kenya depends upon the deductibles amount. The higher you will pay for the deductibles, the lower your premium will be and the more damages you will be afforded as a result.
The coverage cost of Comprehensive Car Insurance in Kenya can be calculated using car insurance calculator and it depends on a number of factors. A few of them are the type of car, model, year, the prevailing market value of the car etc. For instance, the higher the current value of the car, the more expensive its overall comprehensive insurance cover cost will be.
Why Buy Comprehensive Coverage?
While thinking about comprehensive car insurance coverage, you may hesitate whether to choose this plan or not. Although picking up comprehensive motor insurance for your vehicle is not compulsory but it can be an optimal choice and a profitable decision for you. Comprehensive coverage enables an individual to claim for his as well as third party damage in any accidental loss regardless of the faulty, thus saving a lot of money.
Important Reasons to opt for Comprehensive Coverage in Kenya:
1. Important for the car’s Lenders:
If you’re leasing or financing your vehicle, your lender may require comprehensive and collision coverage until the vehicle is paid off.
2. From the car’s perspective:
Every car owner loves his asset and will not afford to lose it anyhow. So the big question that arises here is – What if your car is stolen or damaged in an accident? Would you be able to afford this loss? Nobody wants such huge losses. And that’s how comprehensive or collision coverage becomes a smart investment.
3. Annual premiums for comprehensive and collision coverage:
What is the value of your car in the market at the time of renewing or buying comprehensive coverage? This may seem an unnecessary inquest but it plays a significant role while calculating car insurance rates in kenya.
As suggested by the Insurance experts, every person who owns a car must calculate the annual car insurance premiums using car premium calculator and examine whether the comprehensive or collision car insurance policy you are planning to purchase worth the value of your vehicle or not.
And, if not, then comprehensive and collision coverage might not be a cost-effective option for you. It would be better if you can ask your insurance agent about whether it makes sense to include these coverage on your car insurance policy.
How to Buy the Best Comprehensive Insurance Cover?
Quotes are different in different companies. The company which is older and is well-known will provide services at higher rates and the one which is new to the market may provide its services at cheaper rates. It all depends upon the company you are choosing for your vehicle.
Make a wise choice by following these few easy steps:
- One of the easiest method is to check car insurance kenya quotes online, where you can check out quotes for all insurance firms at one place and compare them.
- You can also visit different car insurance companies in your nearby areas. A reference from a friend, relative or any family member is also good idea to go for right decision.
- Check out the company reputation and customer experience. Even you can check reviews by the customers on their websites.
- See what your requirements are and find the company with best reviews about required insurance plan.
- Apply for the quote.
Without Comprehensive car insurance kenya, if your vehicle gets any damage, you can’t claim for any repair cost until and unless, it is not a case of third-party or no one else is liable for that damage. Thus, you will be wholly responsible to pay for all financial loss.
Although comprehensive coverage is optional but it is a coverage that can help you repair or replace your vehicle and even cover ups the third party loss in case of any damage. Knowing the worth of your car, you can easily decide whether purchasing this type of automobile insurance is worth or not.