Comprehensive vs. Third-Party Car Insurance in Kenya: Choosing the Right Cover
In Kenya, THIRD PARTY car insurance is mandatory by law.
But with different types of coverage available, choosing the right one can be confusing.
This article explores the key differences between comprehensive and third-party car insurance in Kenya, helping you decide which best suits your needs.
Understanding Coverage Levels
Comprehensive Cover:
This is the most extensive coverage option. It protects your car against damage caused by accidents (even if you’re at fault), theft, fire, vandalism, natural disasters, and even some additional benefits like windscreen repairs. It also covers any injuries or property damage caused to others in an accident (third-party liability).
The premiums depend on each and every insurance company as well as the extensions needed. The basic premium is computed using the car’s insured value called SUMS INSURED.
The premium you pay is a percentage of the sum insured. And the percentages vary. More expensive cars have a lower percentage compared to cheaper cars like the Toyota Vitz, Passo, Mazda Demio etc. The average percentage as of time of writing is about 6.5%.
Third-Party Cover:
This is the most basic and affordable option. It covers injuries and property damage caused to others in an accident (third-party liability). It does not cover any damage to your own car. Third-party cover is a MANDATORY legal requirement in Kenya . Its governed by the INSURANCE (MOTOR VEHICLES THIRD PARTY RISKS ) ACT,CAP 405 LAWS OF KENYA.
It provides as follows: “every person who uses or causes or permits any other person to use a motor vehicle on a road must have an insurance that covers against any liability that may be incurred in respect of death of or bodily injury to any person caused by or arising out of the use of the vehicle”
Related: What To Do If You Get Into An Accident
Choosing the Right Cover for You
Here are some key factors to consider when deciding between comprehensive and third-party cover:
- The Value of Your Car:
If you own a new or expensive car, comprehensive cover provides peace of mind, as repairs or replacement can be costly.
- Your Driving Habits:
If you’re a confident driver with a good accident history, third-party cover might be sufficient. However, accidents can be caused by other careless road users thus making comprehensive cover paramount.
- Your Budget:
Comprehensive cover is naturally more expensive than third-party. Consider your budget and weigh the risk of potential out-of-pocket costs for repairs against the premium cost. Age of your vehicle :
Generally speaking, insurers cover comprehensive risks for vehicles that are 15 years and below. The reason for this is that older vehicles tend to be more expensive to repair as most manufactures cease to manufacture parts after some time hence when an older vehicle requires repair, most parts have to be imported and that increases the cost to insurers. There are a few insures who can extend cover beyond that 15 years if they have been covering such vehicle for longer time. They will however require a mechanical report at the insured’s costs on the mechanical well being of the vehicle at the time of going on cover.
Usage of the vehicle:
Some usages of the vehicle tend to make comprehensive cover unlikely for insurers. For instance, vehicles carrying miraa are a huge risk and are mostly unlikely to get comprehensive cover.
Comprehensive vs Third Party Motor Vehicle Insurance in Kenya – Sunland Insurance Brokers Usage in protective environments like in airports also substantially reduce the need for comprehensive covers as the vehicle movements are greatly restricted to a very small area and movements of people where they are likely to be injured also is very limited.
Key Takeaways:
- Comprehensive insurance cover in Kenya offers the most extensive protection for your car and covers third-party liabilities.
- Third-party cover is the most basic legal requirement and only covers third-party liabilities. It is a compulsory cover
- Consider your car’s value, driving habits, and budget when making your decision.
Remember: Consulting with a licensed insurance BROKER can help you understand the specific details of different policies and choose the coverage that best suits your needs.
TALK TO US AT SUNLAND INSURANCE BROKERS TODAY FOR AN IN DEPTH UNDERSTANDING OF YOUR MOTOR INSURANCE NEEDS.
