In Kenya, vehicle insurance is mandatory. According to Kenya cap 405, any vehicle on Kenyan road should have a minimum of third-party insurance. However, the cost of insurance varies according to the type of insurance. Vehicle insurance takes the largest business share in Kenya’s insurance. Vehicle insurance is broadly divided into two; private and commercial.
There are more than 30 insurance companies offering different types of car insurance. As a customer one needs to understand the different kinds of insurance options for your valuable car. Below are different types of insurance and their estimated cost.
Just before we indulge in cost and types of vehicle insurance, let us look at what is a private and commercial vehicle.
These are vehicles that are driven for personal errands and family use. They account for the largest market of vehicle insurance. They include saloons, SUVs, and sedans.
This category comprises vehicles used to gain a reward. Classical examples are lorries, pickups, canters, trucks, and PSVs.
They are further divided into two; Own Goods and General Cartage. Own Goods is a vehicle owned by an organization or individual to transport their goods. However, General Cartage is a car that transports third parties goods for hire or a reward.
Types and costs of vehicle Insurance in Kenya
Now that we know the difference between private and commercial vehicles in Kenya, let us discuss different car insurances in Kenya. Basically, there are 3 types of car insurance in Kenya.
Comprehensive car insurance
This is the most expensive but covers most risks on Kenyan roads. Most personal cars and online taxi cabs use this type of insurance. Although it is not mandatory to have this insurance, online taxi like uber, taxify and bolt require the operator to have comprehensive insurance.
The cost of this insurance is calculated according to the value of the vehicle. Most insurance companies offer 5% of the total cost of the car. The minimum premium is KSh 25,000 while the minimum value of the car is KSh 500,000.
However, the insurance industry in Kenya intends to introduce other insurance calculation metrics such as:
- Driving habits
- Martial status
- Duration of car use
What comprehensive insurance covers:
- Car theft, fire
- Third parties liabilities like damage to another car, injury to a passager, pedestrian
- Car accident
- Towing in case of a major accident
- Accidents of hitting animals
- Windscreen glass damage
Additionally, you can have several add-ons on comprehensive insurance cover to enhance your risk coverage.
Comprehensive Insurance Add-ons
- Excess protector.
- Terrorism and political violence.
- Personal accident for the driver.
Third-party vehicle insurance
This type of insurance is common among matatus in Kenya. It is the cheapest but offers very minimal risk coverage. In Kenya, it costs KSh 8,000 to have this insurance.
However, it only covers third party losses and damages leaving the car owner with hefty car repair bills.
Third-party fire and theft insurance
This enhanced third-party insurance offers additional benefits for fire and theft. Compared to comprehensive insurance, the policy is pocket friendly.
What is car insurance?
Having looked at the different types of car insurance in Kenya. You are at liberty to make an informed decision on what insurance to purchase for your car.
Car insurance is a legal requirement in Kenya. Every Vehicle on road should have insurance. To prove that your car is insured stick an insurance sticker on the left-hand side of the windshield.