Motor Vehicle Insurance

Motor vehicle insurance, also called automotive insurance, a contract by which the insurer assumes the risk of any loss the owner or operator of a car may incur through damage to property or persons as the result of an accident. There are many specific forms of motor vehicle insurance, varying not only in the kinds of risk that they cover but also in the legal principles underlying them.

A car accident may result in big injuries, disability or even death. A survey by WHO reported that between 3000 and 13000 Kenyans lose their lives in road accidents and most of which are due to unsafe driving or unreliable transport modes. An accident may occur due to your fault or the other driver. What if you hit a car and another driver is badly injured? What if the accident resulted in the death of a person? This is where ‘Insurance’ comes into play its role in our lives.

The term “car insurance ” itself explains that to protect any kind of physical or financial loss in future loss from your car. Insurance comes in a number of types like the third party only, third party theft and fire, comprehensive, collision, etc.

As stated by Kenya traffic laws, getting your car insured with third party insurance is mandatory to drive on roads in Kenya. You can’t ignore this because a car without a third party insurance is deemed illegal in Kenya.

Car insurance in Kenya covers falls into three main categories. These categories offer different levels of cover for a driver and they are also priced differently. It is critical to understand the differences between these types of cover in order to make wise decisions when buying a motor insurance cover in Kenya.

These three covers are a comprehensive cover, third party fire and theft, and third party car insurance.

Third Party Insurance Cover

This is the lowest tier cover issued by car insurance companies in Kenya. It also the minimum legal cover that every car must have to be legally on the road. The cover protects a car owner from the liabilities that may arise from third parties if the car is involved in the accident. This cover does not protect the car owner from personal liabilities. If there are any repair costs to be met, the car owner must meet them himself.

Third Party, Fire, and Theft

This is a second tier cover offered by insurance companies that cover three main risks. First, it covers third parties who may suffer injuries or losses as a result of your car being involved in an accident. This takes away all liability from you and places it on the insurance company. Secondly, it covers you in the event that your catches fire and is destroyed. It is important to find out which exclusions apply to the types of fire that your insurer will pay for and the ones not covered exclusively.

This cover also protects you from liabilities associated with the theft of your car. This cover ensures that your car will be replaced by the insurance company in case it is lost to car thieves.

Comprehensive Insurance Cover

The comprehensive cover is the top tier cover offered by private car insurance companies. This cover takes care of a wide range of risks that a motorist may suffer in the process of using his car. Its main features are as follows. The car provides all the benefits of the third party, fire, and theft cover and in addition, it covers car owners from liabilities arising from accidental damage to their car. The definition of accidental damage is very critical to the overall understanding of the Comprehensive cover. Ensure you have a clear idea of the exclusions that may exist on your cover as soon as you receive an insurance cover.

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