Motor Insurance: What you need to know before signing on the dotted line
Motor insurance cover provides various levels of protection to the insured and other road users in the event of an accident or incident.
Motor insurance is a legal requirement mandated by Chapter 405 of the Kenya Traffic Act, which requires all vehicles being driven on Kenyan roads to have a minimum of a third-party insurance cover.
Motor insurance cover provides various levels of protection to the insured and other road users in the event of an accident or incident.
It is good to note that motor insurance is essential as it protects you from financial liability in the event of an accident. However, the type of protection that an insurance company offers depends on the type of insurance coverage that an individual takes out for the vehicle.
There are three types of motor insurance coverage in Kenya.
- Third-party insurance cover
- Third-party, fire, and theft cover
- Comprehensive insurance cover
Third-party insurance cover
This cover offers a vehicle owner the most basic protection in the event of an accident. It covers any damages, injuries, or death caused by the insured (vehicle owner) to the other party. This implies that if you have third-party motor insurance and get involved in an accident, the insurance will only pay for damages and injuries caused to the other vehicle/party and not yourself or your car.
This policy cover is the most common in the market due to its affordability.
Third-party, fire, and theft cover
This cover offers slightly more protection to the policyholder than the third-party cover. In addition to covering what is offered by the third-party cover, it also protects a vehicle owner from possible fire and theft. It is advisable that, before purchasing this policy, find out from your insurance company exactly what fire and theft circumstances are covered.
Comprehensive cover
This cover is the most extensive form of insurance coverage as it offers full protection to both parties in the case of an accident. This policy offers third-party benefits, including damage, injuries, death, and legal liabilities arising from the vehicle accident.
This policy also covers damages to the insured vehicle caused by accidents, natural calamities, floods, fires, or theft. This policy does not pay claims for injury or damage to the policyholder. It is recommended that you take out a separate insurance cover (such as a personal accident cover) for extra protection.
Insurance industry experts advise that it is possible to add ‘add-ons’ to comprehensive insurance coverage, such as political violence and terrorism cover and an excess protector for personal damage.
With this policy, you, as a vehicle owner, will have peace of mind because you won’t have to pay out of pocket if there are any incidents or accidents.
This policy similarly covers windshield limit, radio cassette limit, civil strikes, commotion, and riots.
It is important to read the fine print before signing on the dotted line because even the so-called comprehensive cover does not cover everything.