Auto insurance is an important purchase for all drivers .It protects you financially in the event of an accident or theft. In Kenya, car insurance is mandatory, and it becomes even more important in the event of an accident and the need to deal with the aftermath. To get the best possible rate, you need to understand what type of coverage suits you.
In this post, we will look at how to find the right car insurance coverage for your needs and budget. We look at different car insurance types and what they provide in the case of an accident or theft.
How Does Car Insurance Work?
A car’s insurance policy protects the owner against legal liability arising from an accident causing any permanent injury or death, as well as any damage to the car. It also covers fire and theft, provided the vehicles are laid up in a garage and not in active use.
Cars are important assets in our lives, and we want to make sure they are protected in case of an accident. However, with so many different insurance options available, it can be difficult to know which one is right for you. In this article, we’ll guide you through the process of choosing insurance cover for your car so that you can be sure you’re getting the best possible protection.
Type Car Insurance Covers
When it comes to choosing insurance for your car, there are a few things you need to consider. First, you need to decide what kind of coverage you need. There are three main types of coverage:
- Third party only,
Third parties only cover damages that you cause to another person or their property.
- Third-party fire and theft
Third-party fire and theft cover damages caused by fire or theft to another person or their property.
- comprehensive insurance protection
Comprehensive coverage covers damages caused by fire, theft, and other events beyond your control, such as weather damage or vandalism.
Once you know what kind of coverage you need, you can start shopping around for the best deal. Make sure to compare apples to apples when you’re looking at different policies. The best way to do this is to get quotes from a few different insurance companies and then compare the coverage they offer.
When you are ready to purchase a policy, be sure to read the fine print so that you know exactly what’s covered and what’s not. Once you have your new policy in place, be sure to keep up with your payments so that your coverage doesn’t lapse.
Considerations To Make When Choosing A Car Insurance Policy
There are a couple of factors that you should consider before choosing a company to represent you.
Brand Reputation –
Choose an insurance company that enjoys a good reputation. The probability of such a company delivering on its promises on time would be high in comparison to the lesser-known companies. Thus, you should always try to choose a reputed insurer when buying a car insurance policy.
Check and compare the coverages offered by different plans before purchasing a car insurance policy. Keep in mind that coverage varies greatly depending on the type of plan and provider. While a third-party car insurance policy covers only third-party liabilities (property damage, physical injury, and death caused to a third party by an insured’s car), a comprehensive car insurance policy provides coverage for the insured’s own car damage in addition to third-party liabilities.
There are certain discounts that you can avail to minimize the amount of your car insurance premium. For instance, you can enjoy a discount if you are an AAI member or by installing anti-theft devices in your car. Thus, when purchasing an insurance policy, check to see what discounts are available. You can read more about car insurance discounts.
Your insurance company’s network of garages provides cashless car repair services (up to the sum assured, subject to the plan’s coverage) for physical damage sustained by your car during the validity of the car insurance plan. Thus, at the time of buying a car insurance plan, check the cashless garage network of an insurance company.
Before you choose an insurance company, make sure they respond to your questions and concerns. In the unfortunate event that your car is hit, you need to ensure that they will respond and assist you accordingly.
Check and ask around for reviews on how your preferred insurer treats their customers. Choose the one who is responsive and offers the best customer service.
Unfortunately, some things are not covered by your motor insurance. Here is a list for you.
- Regular wear and tear of your car – Your car ages with time, and surely it needs Service and maintenance are necessary for proper operation. Any maintenance required due to wear and tear is not covered by your comprehensive car insurance policy.
- Your personal belongings: If your car is vandalized or broken into, your insurer will pay for the damage done to the vehicle but will not pay for any damage done to the items kept in the vehicle.
- Driving without required documents—driving without documents such as your driver’s license, car registration certificate, and car insurance certificate is illegal, so if you get into an accident and don’t have your documents, you could be arrested.You won’t get compensation for any of the damages incurred.
Some of the other things not covered by your insurance are
- Using your personal car for commercial purposes
- Violation of traffic rules
- There is no coverage if you use someone else’s car, and vice versa.
- Nonrenewal of your insurance cover
- Modification of the car
Additional Features You Should Look Out For When Purchasing Car Insurance
There are a lot of different features that you can get with car insurance. Some of these features are necessary, while others are just extra perks that can be nice to have. When you are shopping for car insurance, be sure to keep an eye out for the following features:
No-Claim Bonus (NCB)
The no-claim bonus is offered to comprehensive policy holders who have not made any claims during the previous two years. It’s like a reward for using the car safely and carefully throughout the year.
Political And Terrorism Risk
In the event of damage due to political instability or terrorism, the insurer will repair your car .
Here are some add-on covers you should consider.
- Roadside assistance
This can be a lifesaver if you have a flat tire or run out of gas.
- Rental car reimbursement
If your car is in the shop for repairs, this coverage can help cover the cost of a rental car.
- Personal injury protection
This coverage can help pay for medical expenses if you’re injured in an accident.
- Tyre Protection
Replacing your car’s tires can be expensive. This add-on gives you a reimbursement when you replace your car tyres.
- Engine and gearbox protection
This goes towards repairing your engine and gearbox.
- Excess protector
Consider paying for excess protection so that, in the event of an accident, you don’t have to contribute any amount. In case you don’t pay for the excess, the insurer will have a “deductible clause,” which states that in the event of an accident, you will have to pay a certain amount of money before the insurance policy kicks in and takes care of the repairs.
These are just a few of the additional features you should look out for when shopping for car insurance. Be sure to compare different policies to see which one is right for you.
Documents you need when applying for car insurance in Kenya
To get an insurance policy, you will need the following documents:
- National ID or Passport
- Vehicle logbook
- Valuation report
- KRA Pin
The Best Car Insurance Companies in Kenya
Here are the best car insurance companies in Kenya. Before you decide on any, get a quote from each and compare the price and features they provide. The type of insurance you obtain will be determined by your budget, car type (private, commercial, or PSV), market value, and age.For instance, most insurers in Kenya will not consider vehicles over 12 years old or those with a value of less than 300,000 Kenyan shillings for comprehensive insurance.
CIC Insurance offers a wide range of insurance products, from commercial to personal. Plus, they have a cover specifically for lady drivers. Their insurance rate for comprehensive coverage ranges from 3.5% to 6%.
Direct Line is known for providing insurance coverage for matatus and taxis. They also cover private vehicles.
Jubilee is an ISO-certified insurance provider that has maintained global standards. They offer comprehensive insurance for both private and commercial cars.
APA came into being after the merger of Apollo Insurance and Pan African Insurance. They provide insurance coverage for both private and commercial vehicles.
Heritage Insurance is known for providing insurance for private cars. They also provide car towing and tracking services.
The best insurance company for you is one that offers coverage at a reasonable price and provides excellent customer service. Don’t just go for the cheapest option; do all the research to get exactly what you need before signing up for anything. What has been your worst experience with car insurance companies? Let us know in the comment section.