What Are The Various Types of Car Insurance in Kenya?

When investing in a car, most of you take into consideration aspects related to its maintenance and security. While the story doesn’t end at spending a significant amount for purchasing a car, insurance acts as a essential coverage to protect your asset. If you have not insured your car under a beneficial coverage plan, you might have to pay high expenses following an accident or breakdown or if the car is stolen.

Every Kenyan might have encountered such an incident in their life. In order to avoid the extra costs, you must get your vehicle insured. However, this doesn’t signify that you settle for any insurance policy. It is essential that you search the market thoroughly before opting for a suitable car insurance Kenya.

The different car insurance are:

• Third party insurance

• Third party fire and theft insurance

• Comprehensive car insurance

Majority of the car owners may prefer to buy the third party car insurance over the other two because of the variation in the costs. However, it is more commonly recommended to opt from any of the other two insurance policies to attain maximum benefits from the coverage.

This blog details the different types of car insurance in Kenya, while pointing out which of the covers is best suitable for the protection of your car. You may choose out for the coverage policy depending upon your requirements and finances.

Lets consider the basics of all the insurance plans before considering and choosing the right insurance plan for your car.

Third party car insurance

The Kenyan law strictly recommends all car owners to insure their cars that run on the roads. However, the choice of car insurance plan will completely depend on your decision. Third party car insurance offers the most basic benefits to protect your car following an accident. This plan must only be considered if you are looking for the minimum coverage for your car in Kenya.

A third party policy is beneficial in the following cases:

• If you only want to ensure your car is street-legal

• It can be the best option if you know that your car is not experiencing or will not face any serious risks.

• This may be even beneficial if your car is not used much or has been in long-term storage facility.

• This will help manage your cash flow.

The third party insurance will meet the expenses that are incurred from an accident that occurred as a result of your fault, negligence or rash driving. The policy will take charge of the liabilities arising from the damage made to the other person, their vehicle and/or property.

However, what this insurance doesn’t cover are the medical costs incurred from your injuries or expenses met following the damage to your car. In short, third party insurance (as the name suggests) will only provide coverage for the third or the other party involved in the accident and will not be liable for any protection to you.

You may be preferring the third party insurance for any reasons.

Third party fire and theft insurance

While, the above discussed third party coverage provides protection only for the third party involved, third party fire and theft offers additional benefits too. This type of insurance policy gives you one of the most effective coverage for your car. This plan is profitable because of the following reasons:

• First, it is cost effective. It provides coverage for few and specific risks that your car may face. The related terms and conditions, benefits are easy to understand.

• Secondly, in addition to providing the third party benefits, it covers the expenses incurred as a result of loss or damage to your car from the most common incidents i.e. theft and accidental fire.

Comprehensive car insurance

As there is a significant rise in the buying and selling of automobiles in Kenya, car owners are getting more serious regarding the insurance of their private vehicle. Most of the people realize the importance of getting their complete car insured, hence, comprehensive coverage is gaining popularity amongst the mass and is now one of the most preferred type of car insurance in Kenya.

While, the other two types offer insurance cover for third party, fire and theft only, comprehensive car insurance provides benefits that will provide a complete protection for your car. When you choose for the comprehensive car policy, you avail the widest car insurance package that covers the following:

• Costs arising from the loss or damage done to the car or its parts

• Third-party expenses

• Emergency medical billing costs

Commercial Motor Insurance in Kenya

As important it is to insure your private vehicles, commercial vehicles are a must to be insured due to their longer duration on the road. Additionally, these vehicles are unique as they may be carrying passengers or goods. Also, their designs and functions are way too different compared to the private vehicles and have to abide by a different set of rules and regulations.