There are three main types of motor insurance covers offered in Kenya by various insurance companies. These are comprehensive insurance, third-party fire & theft, and third-party insurance covers.
It’s mandatory to have an insurance cover for your vehicle before using it on public roads in Kenya. In this regard, car owners are always in search of the cheapest car insurance cover that suits their specific needs.
In this article, we shall discuss in depth the three covers and look at different tips one can use to get a cheaper option in all three motor insurance covers.
I have also included an insurance cost calculator that you can use to calculate the amount of premium required for your car be it comprehensive or third-party.
Get an Insurance Cover For Your Car in 20 Minutes
Enjoy the cheapest Motor Insurance rates in Kenya today. Use our online insurance calculator provided in this article to calculate the amount of premium required for your car. You can also place an order and receive your cover in 20 minutes.
Comprehensive Insurance
Comprehensive insurance is an all-inclusive cover that covers the vehicle in case of an accident, loss due to theft, or damage due to fire, riots, or natural calamities such as floods as well as third-party liabilities such as damage to other people’s vehicles, buildings, injuries or even deaths.
This cover is a common favorite among car owners due to its all-inclusive nature. Different insurance companies have different additional coverages that are linked to their comprehensive insurance plans. These coverages provide cover for things such as windscreens, radio, glass damage, and excess waiver among others.
As a result, the cost of comprehensive insurance coverage will vary from one insurer to the other. The cost is usually calculated based on the value of the car once valuation is done.
As an industry standard, the approved rate for comprehensive insurance is 7% of the value of the car, this will vary from one insurer to the other and can go to as low as 3.5%.
So! how do you get cheap comprehensive insurance coverage with maximum benefits? below are a few tips you can use to achieve this.
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Tips on Getting Cheap Motor Comprehensive Insurance Cover
During the early years of my career, I worked in an insurance company for 3 years, these are some tips I gathered first-hand that can help you get cheap rates when buying comprehensive motor insurance.
- Identify the insurance company you want – There are many motor insurance providers available in Kenya today, we compiled a list of the best car insurance companies in Kenya to help you choose the best.
- Use an insurance broker or agent – Once you have identified the company of choice, identify one of their best insurance brokers or agents. The best-performing brokers or agents are given special rates that they extend to their customers. You will therefore get a better deal going through an agent/broker as opposed to going directly to the company. Secondly, the agent or broker will follow up on your behalf in case of a claim. These agents are given special treatment as they bring big business to the company and therefore their customers’ issues are given the utmost attention.
- Install an Anti-theft device or a tracking device on your vehicle – In case of loss due to theft, there’s usually a fee you will be required to pay first before your claim is processed. It’s called the excess fee. This is usually a way for the insured accepting a small portion of the risk themselves. You will be required to pay less amount of excess if your vehicle is fitted with an anti-theft device and an even lower excess fee if fitted with a tracking device. These devices aid in the prevention of theft or recovery of the vehicle if stolen and therefore, insurance companies offer incentives through reduced excess percentages for having these devices installed on your vehicle. Dashcams might also join this list soon.
- Spread out your payments – Most insurance companies have provisions where you can spread out your payments and pay the premium in several months as opposed to paying the full amount at once.
- Maintain a good driving record – Insurance providers often offer discounts to drivers who have a clean driving record. This means you should try and avoid accidents, traffic violations, and any other driving offenses that could negatively impact your driving record.
That’s just a few tips you can use to get cheap comprehensive motor insurance in Kenya.
It’s important to note that only vehicles below 15 years of age are eligible for comprehensive Insurance in Kenya. The rule is however not cast in stone and can be broken in some instances for example if the vehicle is a high-value vehicle, this, however, is at the discretion of the insurer.
Comprehensive Motor Insurance Cost Calculator
You can use the comprehensive insurance cost calculator below to calculate the amount of premium required for your vehicle as well as place an order and receive your insurance cover in 20 minutes.
The premium calculated will be an annual premium. Once you place an order a sales representative will reach out to you and advise on how the amount can be spread out in 3 installments.
While filling out the contact form kindly provide a phone number that you can be reached with on call. Also note, you'll be required to make payment before your cover is processed.
Third-Party Fire & Theft
Just as the name suggests third-party fire & theft is a form of insurance that covers the vehicle in case of damage due to fire or loss due to theft as well as damage caused to third-party vehicles or property.
This insurance cover is not popular in Kenya due to its partial nature of coverage. The cost is also calculated based on the value of the car after the valuation is done. The industry standard is 5%.
If you’re willing to pay a premium equivalent to 5% of the value of your car you’re better off getting a comprehensive cover, that’s just my honest opinion. Because let’s face it, that’s a lot of money to pay for just partial coverage.
Third-Party Insurance
Third-party insurance is a type of motor vehicle insurance that covers damages to third parties, including property damage and bodily injury caused by the insured vehicle. This insurance is mandatory under Kenyan laws and is designed to protect third parties from any damages caused by the insured vehicle.
This means if you get into an accident the insurer will only pay for damages to properties such as buildings, the other car, or injury caused to the other person and not yourself or your car.
This cover is popular in the Kenyan market as it’s mandatory by law and it’s also a default cover for vehicles above 15 years of age.
That’s not all, third-party insurance is one of the cheapest insurance covers available in the Kenyan market today. The cost usually ranges from ksh 5,000 to ksh 10,000 annually depending on the insurer. What’s interesting is that the annual premium can also be prorated and paid over a period of time with payments ranging from as low as ksh 1,500 per month.
But wait, we’re not yet done, It gets better, under third-party insurance coverage there’s another insurance cover called the one-month third-party insurance cover commonly known as TOR or Time On Risk insurance cover.
This cover provides third-party coverage for a period of one month. It’s popular among car owners in Kenya who only need temporary insurance coverage for a short period.
Instances, where one would need TOR insurance, for example, if you’re taking your car to the garage for a major overhaul, you plan to sell the car within the month, or you don’t use the car regularly, and only need coverage for a few days that the car will be in use.
The cost of the one-month third-party insurance cover in Kenya ranges between ksh 1,500 to ksh 2,000 depending on the insurer making it probably the cheapest type of car insurance cover in the country.
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Third-Party Motor Insurance Cost Calculator
- You can use the cost calculator below to calculate the amount of premium required for your cover as well as place an order.
- The insurance cover will be processed and sent to your WhatsApp or Email in 20 minutes
How To Choose The Cheapest Car Insurance In Kenya
There are two main factors that will guide you when choosing an insurance cover, these are:
- Type of Cover
- Age of Vehicle
Type Of Cover
Before getting a motor insurance cover you need to identify the kind of benefits you want to be tied to it.
If you need full coverage then a comprehensive insurance cover is the go-to cover, you can then use the tips provided above to get a cheap option with maximum benefits.
If you require partial coverage then third-party fire & theft is the go-to cover. If only the minimum requirements are needed then a third-party insurance cover will do.
Age Of Vehicle
In Kenya, the maximum age limit for a comprehensive motor insurance cover is 15 years, by default vehicles over 15 years get third-party insurance with a few exemptions at the discretion of the insurer.
Verdict
Each of these insurance covers has its own share of benefits.
Generally, and considering the buyer preference in Kenya, comprehensive insurance is a common favorite for many car owners.
However, third-party insurance is one of the cheapest motor insurance covers available in Kenya today, It’s also the minimum coverage required by law.
That said, people have different needs and preferences, and based on your own unique needs our experts can advise you on which insurance cover would work best for you. Talk to us today for a free consultation with our in-house insurance expert.
Very educative. Times are and insurance is essential
Thank you Michael for the positive feedback. Were here to always offer the very best information so as to assist you to make the right decisions.
I didn’t know the 7%of the value of the car,Shukran for that. And the figures range in the frequently asked questions sections are per what interval,per month, quarterly or annually?
Hello Jay, The 7% is the rate given by IRA, but insurance companies offer discounts to their clients so the rate can go down to as low as 3.5% depending on the insurer as well as the value of the car.
The rates mentioned are annual rates however, you can use the insurance calculator provided up above that’s more specific.
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