17 Aug 10 Most Common Car Insurance Kenya Myths Demystified
Car Insurance is considered as a laborious job in Kenya. By law, it is mandatory to have an auto insurance policy, and according to Insurance Act of Kenya, at least third-party cover is imminent for every Kenyan.
There are several myths and rumors related to car insurance that has affected Kenyans by creating a wrong impression in their minds. For every motorist, this is so necessary to understand how an auto insurance works, what myths are surrounding it and how to avoid them.
Car Insurance Kenya Myths – DEBUNKED
So, read on to find out most common car insurance myths in kenya. Today, we will try to demystify all those myths with the truths behind them.
Myth 1: I am using an old car so I don’t need auto insurance.
Fact: By the Insurance (MOTOR VEHICLES THIRD PARTY RISKS) Act of Kenya, it is mandatory to protect your vehicle with a third-party insurance plan, regardless of the fact that your car is old or new. If you think that the low replacement value of an old car will not justify expensive insurance plans, you must opt for a third-party policy at least. Do remember that old car has the high probability of theft, due to the demand of its quality parts. Moreover, old cars are easy to steal.
Myth 2: I can’t transfer my policy from one insurer to another because If I will do so, I will lose my No Claim Bonus.
Fact: Keep in mind that your No Claim Bonus stays with you.
A No Claim Bonus is a reward given by auto insurance firms to those customers who are handling their car well. It’s a sort of payment a customer becomes eligible to receive if he hasn’t filed for insurance for the entire length of his policy, and yes, it’s usually quite a substantial amount. For those who are unaware of this fact tend to avoid selling their cars in fear of losing their NCB.
Additionally, such customers can easily shift to another insurer if they are keen to change and their NCB will follow them wherever they go. They will get all benefits for their NCB points no matter whosoever insurer they choose. So, this is completely a rumor that if you will sell your car or will choose a new insurer, you will lose your NCB.
Myth 3: I can’t change the insurer once I buy one.
Fact: This is completely a fiction that if you have already bought a motor insurance for your car, then you can’t change your insurance company. There are different insurance plans offered by different insurance firms. Generally, insurance plans are valid for one or two years except if you haven’t opted for the multi-year plans. Once the validity of a plan ends, you can easily change your insurer. It’s just an illusion that you can’t change your insurer. Furthermore, at the time of renewal, you will get the full benefit of NCB, you earned from the previous insurer.
Myth 4: I need to purchase a separate policy for my driver
Most customers believe that they will have to buy a new policy if they want to include their driver to the policy, which is the biggest myth.
Fact: Although it is advised to add your driver to your policy, it doesn’t require you to buy a separate auto insurance policy for the same. You can add your driver to your already prevailing policy provided your driver has a valid license. If not, the insurer wouldn’t accept your claim, in the case of an accident.
Myth 5: It’s expensive to insure cars other than black or white color.
Fact: Do you really think that color plays such a vital role in insurance of car. Well, if so then this is absolutely a myth. There is no role of colors when it comes to insurance of your vehicle. To insure your car, factors affecting are the brand of car, its manufacturing year, its prevailing value etc., not the color of the car. Please come out of this rumor, purchase the car with your favorite color and step forward for the insurance of your asset.
Myth 6: If you get into an accident once or get a ticket, you will have to pay higher premiums always.
Fact: This is believed that a person who tends to drive safely is least likely to involve into accidents as compared to a person with a bad driving record. But this is completely a false story that a person who gets into an accident once is sentenced to pay huge car insurance rates for the rest of his life. Moreover, any accidental record or tickets against a person stay on motor insurance record for a specific period. Additionally, if you maintain a good driving record afterward, you will also get benefits from a reduction in auto insurance rates.
Myth 7: Motor insurance only covers the accidents where I am not deemed to be at fault.
Fact: Different insurance firms have different policies. It all depends on which policy you purchase for your vehicle. Basically, there are three car insurance cover types in kenya – third-party only. third-party theft&fire, comprehensive plan. Having a third-party car insurance in kenya means the company will cover the third party persons from any kind of accidental or bodily loss. A third party theft and fire policy will cover the third party as well as you from any incident involving fire damage, vandalism or theft which leads to physical damage of vehicle or any bodily injury as a result of struggle while protecting your asset from thieves or robbers.
A comprehensive car insurance plan means an overall protection from any type of incident whether an accident, collision with an object or vehicle, natural calamities or theft or fire damage. So, no matters who is at fault and whether the fault is proven or not, if you have insured your car with any of the above policies, you will get cover from your corresponding insurance company. Having a motor insurance for your vehicle means you will surely get a financial coverage for all types of accidents, provided it is written in your policy document. Also, if you meet an accident in an influence of drug or alcohol, you can’t claim for any cover.
Myth 8: My driving record is really bad and I will not be able to get car insurance.
Fact: This is the most common myth among teenagers and old people. The reason behind is the people under both age groups are listed among rash or risky drivers and statistics show that overall, teenagers and older drivers are involved in far more crashes and highway fatalities than any other age group. But there is nothing like if you have a bad driving record, you can’t buy an insurance. You can get insurance, however, car insurance rates will be far expensive depending just how bad your record is. If your driving record is too bad, you may need to pay huge premiums and you will have to access companies offering high-risk auto insurance.
Myth 9: In case of an accident, I will have to pay from my pocket then go through the complex claim process
People believe that if they get into an accident, instantly they will have to pay repair costs, medical expenses etc from their pocket. Afterward, they will have to claim from the insurer which is a complex process as they feel insecurity whether their insurance agent will pay the amount or not.
Fact: The claim process of car insurance is not at all difficult. When a person purchases an auto insurance plan, he is guaranteed to be covered in case of an accident. The policy documents hold all the rules of indemnity. So, whether you pay instantly or not, your claim will surely be reimbursed. For online insurance, you can visit a network garage and the insurer directly settles the incurred expense, you don’t have to pay a single penny.
Also, in case you are unable to visit a network garage, just log on to their website, fill out the claim form by providing relevant information and submit it. Once your claim is registered online, the customer support will contact within 24 hours and they will assist you with further formalities. And in case, you had paid to the third party spontaneously, your claim will surely be reimbursed later.
Myth 10: I can claim for personal damage cover can be claimed if someone else is driving my car.
Fact: This is entirely a big myth. Since the insurance policy is in your name, and the driven vehicle is yours, the personal damage claim will also be in your name. So, in such a case where your car is driven by someone else, the property damage or the injury inflicted on you as a result of an accident can be claimed but damage to any other person’s property or bodily injuries inflicted to another person can’t be covered.
Car insurance Kenya is such a contentious topic that it inevitably develops several myths around it. While purchasing an auto insurance in Kenya, a motorist always looks for the right auto insurance policy. Hereby, it becomes essential to know how to differentiate between the myths and reality.
So today, we discussed some popular myths associated with car insurance which has surfaced customers minds over years. After reading all these car insurance myths along with the facts, you will be able to take a wise decision for your vehicle’s insurance.