27 Jul Comprehensive Car Insurance Kenya – Cover Cost, Benefits & More
With the advent of automobiles, life has become easier as people don’t need to rely on public transportation. But owning a vehicle is not that enough. Driving a vehicle is a big responsibility as rash driving can not only harm you but also can lead to harm to a third person as well. Thus, the arrival of motors drives to the establishment of the Car insurance sector.
A car insurance is a means of protection against financial loss which one could suffer as a result of unpredictable incidents that may be an car accident etc. Car insurance Kenya is classified into different categories based on requirements. Each category has its own significance. But the most prevalent insurance is Motor Insurance in Kenya.
Why Motor Insurance is considered Important in Kenya?
Given that most of the Kenyans are travel freaks. They love to travel for fun, adventure, exploring places and enjoyments. It becomes really important to ensure your vehicle against any loss in future. The insurance companies provide you with the financial cover to repair your car in case you met an accident, replace with a new one if your car is destroyed in an incident, covers for bodily injuries as per policy norms.
Different companies provide different types of car insurance policies. But there are three common policies under Auto Insurance in Kenya which are Third-party only, third-party theft and fire and Comprehensive Cover. All of the three play a significant role for the vehicle owners.
According to Insurance Regulatory Authority, third party liability coverage is a mandatory insurance coverage which every vehicle owner must buy for their vehicle in order to drive their private or commercial vehicles in Kenya.
Due to this law, people have opacity for comprehensive coverage which is considered to be the highest level of financial coverage and protection which a person can get from his asset.
So, in this post, we are going to cast light on Everything You Need To Know About Comprehensive Car Insurance In Kenya from its benefits, coverage options, cost, collision comprehensive difference to why should one opt to purchase it.
What is Comprehensive Car Insurance ?
Comprehensive Car Insurance or in other words, fully comp cover is the maximum cover which a motorist will get from the insurer and this type of insurance provides financial cover for third party car insurance kenya, third-party theft and fire and in addition, it will also cover for the loss or damage involving incidents like natural calamities, collision of vehicle with an animal or tree, vandalism etc.
For example, if any object falls on your car, let’s say a tree, the repairing expense of the car will be recovered by the insurance company.
Comprehensive Car Insurance Benefits
A comprehensive coverage isn’t often cheap. But it has many benefits in the aspect of multiple coverage options.
- Buying a comprehensive coverage plan is must if you are leasing financing your car and in case, you own a car, it is an optional policy for you.
- With the comprehensive car insurance cover, you can claim for third-party damage from your insurer.
- Additionally, you can also claim for damage due to theft, fire or vandalism.
- The biggest advantage is that insured is also covered for all the damage to his own vehicle along with the third party even if it is deemed to be his fault.
- Coverage for the damage or loss even if the fault is not proven.
- A comprehensive coverage aids you with added level of protection if you lease your car.
- It recovers you with the replacement of a new car if the car is completely destroyed in a fire accident.
How Is Collision coverage different from Comprehensive Collision?
Generally, the auto insurance terms, comprehensive and collision coverage are considered to be same. But it is completely misunderstood because fully comp. coverage covers both physical and liability coverage. Physical damage covers collision and comprehensive car insurance and both are different terms offering the different type of financial risks.
Collision Coverage: In this type of insurance, the company pays to repair or replace your car when you collide with any other vehicle or object. For Example – if your car hits a tree or a pole, this incident would be termed as collision coverage and in such cases, collision coverage will apply.
Comprehensive Coverage: In Comprehensive coverage, your insurance company will provide pays for damage to your car caused by an incident other than a collision, such as fire, theft or vandalism. For Example – If you hit an animal, or if your car is flooded or stolen, in such cases, you can claim for comprehensive coverage.
Comprehensive V/S Collision insurance
To make it more clear, here is an example.
If you cause an accident which means your car collides with any object, the insurance claim that will be applicable in such a situation is Collision Coverage.
Collision Coverage particularly applies in these cases.
- collision with another vehicle
- collision with an object.
Collision coverage is too expensive.
Collision Insurance is profitable if it is procured with a combination of comprehensive.
If an object collides with your vehicle, or if your car is a victim of theft, vandalism or any type of mishappening which will result in damage to your car, the insurance claim you can apply for is Comprehensive Coverage.
Comprehensive Coverage is applicable in following cases:
- In case of vehicle theft, caught on fire, vandalism
- In damage due to natural calamities.
- Less expensive as compared to the collision.
- Low deductibles.
One can buy it alone as well as in combination with collision, depending on your budget and requirements.
What does fully comprehensive mean on a car?
A fully comprehensive cover is a second term used for comprehensive car insurance Kenya. In such a coverage, the insured is covered with all types of financial risks inclusive of third party damage. A motorist is also covered for the damage to his car, bodily injuries if any, and damage to any property in an accident.
Fully comprehensive involves coverage in below-presented cases:
When it is deemed to be the fault of motorist:
If the accident is caused by your vehicle and is deemed to be completely your fault, you can claim for fully comprehensive cover. The company will pay for all the loss involving your vehicle as well as third party damage.
In the case of vandalism:
You can also claim for this type of insurance if someone hits your car but the fault is not proven. Your insurer will provide with all the benefits under this insurance.
Comprehensive Car Insurance Coverage
What is covered?
The comprehensive auto insurance covers the motorist with every type of loss which is caused due to an accident, which can be either collision with another vehicle, falling of object, theft, fire or natural disasters. Here are some significant covers which are generally given an insurer:
- Damage caused by a collision or crash.
- Theft, vandalism, and accidental damage
- Damage caused by fire.
- Damage due to storm or flood, or any natural calamities.
- Replacement by a new Vehicle in case if your car is classified as Written-Off in policy registration.
What is not covered?
A number of risks are faced by a motorist while driving on a road. Each insurance company has its own laws and policies. Although a maximum number of perils are covered by various car insurance companies in kenya under the comprehensive policy. But there are some losses which are not covered by comprehensive car insurance. These are mentioned below:
- Breakdowns Arising from Wear and Tear.
- Intentional Damage
- Personal Injuries
How Much Does Comprehensive Insurance Cost in Kenya ?
While making any purchase for auto insurance in Kenya, it is important to verify the car insurance quotes offered by different car insurance companies. You can easily compare the quotes online.
There are limited numbers of websites in Kenya that offer you the service to compare car insurance rates and InsureAfrika is one of those best options where you can get best deals on car insurance. Every policy has different insurance cost.
As explained above, the comprehensive car insurance is not so costly if compared to collision coverage. But it is also not too cheap if we talk about other types of car insurance in Kenya such as third-party or third-party theft& fire. A number of factors are taken into consideration while calculation comprehensive car insurance rates:
- Manufacturing year of the Car
- Car Model
- Type of Car
- Prevailing market value of Car
- Deductible amount
Smart ways to lower your comprehensive insurance cost
- Keep the deductibles high but keep in mind that it should be an affordable amount for you. Though it is risky, it will lower your car insurance rates.
- The higher the current value of your car, the more expensive its overall comprehensive insurance cover cost will be.
- Keep your driving record good.
- Try not to claim for smaller amounts as it will create a good credit history for you which will further lead to lower comprehensive insurance rates.