Written by Magdalene Ngonyo
#ladiesandgentlemen
The Key to Peace of Mind—But Why Do We Make It So Hard to Understand?
If you’re like most people, the word ‘insurance ‘probably doesn’t send you running with excitement but rather lots of questions. But what if I told you that, rather than this subject being boring, it could actually be the key to unlocking peace of mind and protecting everything you hold dear—your car, your health, and even your future?
Insurance is often seen as a maze of jargon, fine print, and confusing policies that leave many new buyers overwhelmed and unsure of where to start. Lack of understanding about insurance not only leaves people vulnerable to financial risks, but it also causes them to make uninformed decisions that could cost them more in the long run.
But don’t worry, Magda Auto Hub got you covered. In this blog, we are here to solve that problem. Whether you’re a first-time car owner or looking to understand your insurance options better, this guide will break down the key concepts and provide easy-to-follow steps to ensure you make the best decisions for your needs. we’ll help you navigate through the maze of options by explaining the different types of coverage, and most importantly; empower you on how to protect what matters most with confidence.
Ready to uncover the world of insurance, lets demystify the jargon, and Let’s dive in!
We are going to kick off with the 3 types of insurance we have in Kenya.
According to The Insurance (Motor Vehicles Third Party Risks) Act, also known as Cap 405, is a Kenyan law that requires all motor vehicles on public roads must have a third-party insurance. This law aims to protect against risks to third parties caused by the use of motor vehicles.
There are 3 types of Car insurance Policies in Kenya, Namely:
- Comprehensive Car insurance
- Third-Party, fire and theft car insurance .
- Third-party Car insurance only.
Comprehensive Car Insurance
Comprehensive car insurance in Kenya provides extensive coverage for your vehicle, protecting against a wide range of risks. It is mainly admired by most people because It covers damage done to your car caused by accidents, theft, vandalism, natural disasters, and even third-party liabilities,(of which I will explain later in the blog) ensuring that you’re financially safeguarded in almost all situations. This type of insurance is ideal for those who want peace of mind knowing their vehicle is covered for both own damage and third-party claims.
What does Comprehensive Car Insurance Cover?
- Accident Damages.
- Theft.
- Fire.
- Windscreen Claims
- Third-party body injuries or death.
- Third-party property damage.
- Natural Disasters such as floods.
- Social Vices such strikes and Civil riots
- Towing in the events of major accidents or major breakdowns
The above -stated areas of coverage are subject to various terms and conditions of Comprehensive Car insurance which ranges from one company to another. The total cost payable is recorded in your insurance policy document. What are the terms and conditions you apply?
Excess: Excess is the amount your insurer will ask you to pay if you decide to make a claim on your policy. It’s a way of you accepting a small portion of the risk yourself. You are wondering, what does that mean? For example, Your policy indicates that the insured will pay an excess of Ksh10,000 when the insured event occurs. For example If your car was damaged in an accident and the cost for repairing the damage is Ksh40,000, you will be expected to pay the first Ksh10,000 and the insurer would pay the remainder. Not every type of policy has the same kind and level of excess. Your insurer may have different types of excesses, and some policies may have more than one applicable excess. It is important to Read your policy to understand. You may also choose to pay a higher excess amount than what your insurer prescribes. In this way, you are taking on more of the risk yourself, and that way the cost of your premium can be lower.
Mechanical and Electric Failure: claims that arise as a result of mechanical and electrical failures will not be covered.
Political Violence and Terrorism: claims arising out of acts of terrorism and political violence are not covered unless it is indicated.
Body Injury/death of the insured individual: It is important to note that you as the driver of the vehicle you are not covered by both types of insurance. Drivers are encouraged to get Personal Accident Insurance either as an optional benefit on their motor insurance or as a separate policy.
In the next upcoming blog, we will deeply explain factors that determine the cost of motor insurance in Kenya and how premium insurance work and its importance.
Good thing Comprehensive Motor insurance as some extra covers that you can extend to ensure you are well protected or insured. Some of them do come at an extra cost and some will be provided free according to the Insurance Company you will end up choosing.
Some of the extra benefits include:
- Excess protector.
- Political Violence and Terrorism Cover.
- Road Rescue.
- Theft of accessories such as Side Mirrors,headlights, tail lights and light indicators.
- Loss of use/courtesy car in the event of an accident and among others.
To reinforce your understanding, Go back to the beginning of the Comprehensive Article and read again and you will be able to understand.
Third-Party, Fire and Theft Motor Insurance.
Third-Party, Fire and Theft Motor Insurance is now very different compared to Comprehensive Insurance Cover; Third-party, Fire and Theft motor insurance is a basic type of insurance and the unsung hero of a budget-friendly insurance cover. Here, The insurance cover is a mid-tier cover that protects your car against specific risks while meeting legal requirements . It covers third-party liabilities, such as damage to other people’s property or injuries caused by your vehicle. Additionally, it provides protection for your car in the event of theft or fire. However, it does not cover damage to your own car from accidents or when the car is written off when you are at fault; making it a more affordable option for drivers seeking more than basic third-party insurance but not full comprehensive coverage. The security about Third-Party Fire and Theft motor insurance cover is that it gives basic third-party coverage and protection of your car against theft and fire.
Third-Party Only Motor Insurance.
Third-party car insurance is the most basic and legally required motor insurance in Kenya. It provides coverage for damage or injury caused to other people, their vehicles, or property in the event of an accident involving your car. However, it does not cover any damage to your own vehicle or injuries to you as the driver. This type of insurance is ideal for budget-conscious drivers who want to meet legal requirements and protect themselves from liabilities arising from harm caused to others.
Conclusion.
Understanding insurance doesn’t have to feel overwhelming. By equipping yourself with the right knowledge, you’re not just protecting your car; you’re protecting your peace of mind. At Magda Auto Hub, we’re here to guide you every step of the way. Whether you’re a first-time car owner or just looking to upgrade your coverage, we’re ready to pair you with trusted insurance companies that will align with your needs.
And we’re not stopping here! Stay tuned for Part 2, where we’ll dive deeper into the factors that determine the cost of motor insurance in Kenya. We’ll also explore how premium insurance can be a game-changer in ensuring you get value for your money. You don’t want to miss it!
At Magda Auto Hub, we’re more than just cars—we’re your partners on the journey to informed decisions and better protection. Until next time, drive safe and stay covered!
