Understanding car Insurance

06 May 2020

Car insurance is a legal requirement by the government and if you are caught without it, you could be taken to court and penalized. There is also a risk of having your vehicle clamped and seized by the government until you acquire insurance. The fine for driving without car insurance in Kenya is fine of up to KES 100,000 or years of jail if you get caught.

 Car insurance in Kenya covers fall into three main categories. These categories offer different levels of cover and they are priced differently. It is important to understand the differences between these types of cover in order to make wise decisions when buying a motor insurance cover.

Car insurance products include:

  • Comprehensive cover

  • Third party cover

  • Third party, theft and fire insurance cover.

Understanding Third party(TP) insurance cover, it’s advantages and disadvantages

TP is the most basic policy type and is the minimum level of cover required by law, to make sure third parties involved in any accidents are covered.

What is covered by third-party insurance?

If you have an accident while driving the car that’s listed on your policy, third-party insurance covers you for:

  • Third-party injury to a passenger or a person in another car;

  • Damage to another person’s car; and

  • Damage to another person’s property, including driving into their wall.

What isn’t covered by third-party insurance?

If you have an accident and you cause damage to another person or their property while driving, your third-party policy provider may not pay out if:

  • You have to pay any medical or legal costs for your own injuries, including physiotherapy;

  • Your car is damaged in an accident that you caused;

  • Your car is stolen, damaged or destroyed by fire;

  • You had an accident while driving a different car to the one that’s listed on your policy;

  • Your personal belongings are damaged; and

  • Your windscreen is damaged.

You might be able to add extra levels of cover like personal accident to your third-party policy, so it’s worth reading the policy documents carefully to make sure you know what will and won’t be covered – and to check if there’s a possibility of getting enhanced third-party cover.

If the value of your car is low, having third party insurance could be an advantage as the cost of your excess could be more than the cost of any repairs needed.

Excess (The car insurance excess is the amount you will be required to pay when you make a claim on your policy. In other words, it's the amount you agree to contribute towards the cost of a claim, with the insurer covering the remaining amount)

We will be covering Comprehensive cover and Third party, theft and fire insurance cover in the next articles.

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