FAQ’s

A motor insurance is purchased for cars, trucks, motorcycles and commercial road vehicles. Motor insurance is a mutual agreement between the insurer and insured wherein the insured pays a fixed annual premium to the insurance company. In return, the insurer agrees to provide a financial cover to the insured in case he/she suffers a car accident, theft, third –party bodily injury or death, third party property lose any natural calamity.

In simple words, car insurance kenya is a policy that protects the insured against any financial contingency arising due to accidents, theft or damage.  Insurance of motor vehicles against third party risks is compulsory in Kenya and it is an offense for any person to use any motor vehicle without the insurance cover.

When you buy motor insurance, you contribute a sum of money called premium into a common pool. The few unfortunate contributors who suffer losses are paid out of this pool and in any case, nobody wishes to be involved in a loss situation in order to be paid out of the pool.

The total premium contributed into the pool should be adequate to meet all losses suffered in any one year. In addition, other costs of operating the pool including profit for the insurer needs are met by the pool. Any failure in meeting the above costs leads to a loss for the insurer.

Most of Kenyans are unaware of the importance of motor insurance and its need. Motor insurance means insuring the financial risk involved while operating the car. The car might meet with any damages, accident or may be lost or stolen.

In such a situation, this insurance helps to compensate the loss borne by the owner as a result of insurance agreement with the insurance company if the damage is covered under the motor insurance policy.

Under the provisions of Motor Vehicles Act Kenya, all the vehicles operating in public places should have car insurance cover and In Kenya, ‘third party car insurance cover is must’. It means that a car insurance policy must cover the third party in case of any accident.

It may or may not cover the damages of the owner of the car and it is considered as a big offense for any person to use the motor vehicle without the insurance cover.

There are majorly three types of motor insurance covers in Kenya which are described below:

Comprehensive Car Insurance

A cover protects the insurer against the third party’s death, bodily injury and/or property damage as well as loss/ damage to your vehicle due to accidental fire, theft or an accident.

Third Party Car Insurance

Under Motor Third Party Coverage, it protects the owner against third party losses including death, bodily injury and/or property damage. It is mandatory and even beneficial to own such an insurance where it covers up the owner’s damages along with the third parties in case of an accident or damage.

Third Party, Fire & Theft Car Insurance

This cover protects the owner against all third party risks mentioned above i.e any accident or damage. in addition to it, it also covers the loss and/or damage to your vehicle due to fire, theft or being stolen.

Comprehensive Car Insurance Plan is the superior coverage for your vehicle wherein the insured is covered with all types of financial risks including third-party liability,  Third-Party Theft, and Fire (TPF&T) and also the owner’s losses in case of an accident or damage. It extends to cover any other accidental damage to the vehicles including collision, overturning, natural calamities like floods, earthquakes etc.

With comprehensive car insurance Kenya policy, the vehicle owner can claim from the insurer for accidents that are deemed to be his/her fault.  Such insurance is also applicable in cases when fault can’t be proven, eg if you find your car damaged or someone hit your vehicle and driven off, in this situation, you can claim for the complete coverage for repairing from the respective insurance company.

Today, there are multiple options to apply for car insurance in Kenya. Additionally, many vendors are giving online motor insurance services.  Which company to choose and which product to buy is the most important thing under consideration while purchasing insurance for your vehicle in Kenya.

5 Tips To Follow Before Buying A Car Insurance

If you are looking for an insurance cover that incorporates all your required aspects, keep the following tips in mind to make an informed choice.

1. Make a list of all the insurance service providers in your area.
2. Determine your requirements.
3. Choose the coverage plan accordingly.
4. Shortlist the companies on basis of your coverage option.
5. Request for quote.

If you are not sure about the service providers, you can compare the price value of quotes by different companies and based on the results, contact the right company for your vehicle.

In order to deeply understand the concept of third party car insurance, firstly let’s understand, “What is the first and second party?”.

The first party in a motor insurance agreement is the vehicle owner and the second party is the insurer.

What is a third party?

A third party is a person who suffers bodily injury, any kind of physical harm or death, property damage as a result of an accident involving your motor vehicle. A third party person can be anyone including a property owner, a pedestrian, a driver or passengers in another vehicle.

Third Party car insurance offers financial coverage to a third party in the case when you are at fault. It covers any damage or injury caused by the insured, to another person or property. If you have a third party only insurance cover. you can not claim for any loss or damage of your own vehicle. Rather you may need to claim for the vehicle or damage to the third party from the insurer,

This type of car insurance covers the owner in case of any legal liability owing to death or injury to any individual or damage to any property caused by the insured vehicle.