Insurance is a contract represented by a policy whereby the policyholder receives financial protection or reimbursement against losses from an insurance company.

Insurance policies hedge against financial losses resulting from; accidents, property damage or injury. It also helps cover costs associated with liabilities for damages or injuries caused to a third party.

There are the two common insurance in Kenya namely; –

1.  Comprehensive car Insurance
2. Third-party car Insurance

It is an optional coverage that protects against damage to your vehicle caused by non-collision events outside your control such as theft, vandalism, fire, accidents with animals, weather or other acts of nature. Damage from fire.

Does Motor Vehicle Comprehensive policy cover the driver and/or the owner?

1. Covers your car against accidental damages. This is the primary benefit of this cover since you don’t have to pay for accidental damages for your car.

2. Includes third party liabilities. This insurance cover not only protects your car, but it also covers losses, damages, or injuries caused to the third party.

3. You can enhance your cover. Comprehensive car insurance cover usually has the option of enhancing it to include additional coverage that your car can receive from this insurance cover thus having a broader cover for a wider range of risks.

4. Compensates you in case of car theft. In a case where your car has been stolen or vandalism of parts, comprehensive car insurance gets you covered.

5. Breakdown assistance. This is one of the benefits since in case of a breakdown along the way you just make a call to the  comprehensive cover with no fee charged.

• Pays for windshield and glass repair and replacement.
• Pays you the value of your vehicle if incase of theft.
• It plays an important role if you own a newer vehicle that will need expensive repairs if it gets damaged.

• Might not be needed for an older car.
• Adds to your car insurance cost.
• It cannot protect your four-wheeler from the depreciation of the value of the car over time.

This is a policy purchased by the insured (first party) from the insurance company (second party) for protection against the claims of another (third party). It covers damages, injury, or death caused to the third party and it does not provide coverage for your own vehicle’s damage.

1.Peace of mind -when dealing with a distressing situation that fully hinges on financial payments this insurance ensures that the affected person’s mind is at peace.

2. Quick and easy process -since it is mandatory in Kenya, then the procedure is quite easy and quick for vehicle owners.

3. Affordable coverage – this type of car insurance is more affordable as compared to comprehensive car insurance since it comes with minimal protection thus the premium amount is comparatively lower.

4. Availability of online purchase and renewal – the policy can be bought and renewed online just by giving the basic details about your vehicle.

• Its cost is the main advantage because, encase of an accident, and the third-party property is damaged, you will be on a safer side and save up some money with the help of the third-party insurance policy rather than being liable for the damages and the entire amount.

• Its cost is the main advantage because, encase of an accident, and the third-party property is damaged, you will be on a safer side and save up some money with the help of the third-party insurance policy rather than being liable for the damages and the entire amount.

• Since you’re meeting the bare minimum legal requirement for the insurance, you don’t have to worry about getting pulled over for lack of insurance policy.

• Purchasing and its renewal not only saves on time, but it is also convenient.

This is an all-rounded cover for your car since it not only takes care of the third-party liabilities but also covers for you and your own car.

This is the most basic car insurance plan that only covers damages and losses caused by your car to any third-party person, vehicle or property.

Coverage under this is extensive as it not only protects you against damage and losses caused to any third-party but also covers your damages and your car’s as well.

It only offers coverage for third-party damages and losses such as if due to an accident or collision you hurt a third-party person or their property.

You can customize your car insurance plan by adding specific add-ons and covers such as zero-depreciation cover, engine and gearbox protection.

No customizations are possible under this car insurance plan.

Despite its higher price, its premium is based on many factors such as the city you are in, your car model and make.

It is cheaper than the comprehensive car insurance, its premium price is predetermined by the Insurance Regulatory and Development Authority based on a car cc.

Other than its higher price, this plan gives you a complete coverage thus being beneficial.

If you are currently driving an older car then the third-party insurance would be enough for you.

To sum it up, the major function of car insurance is to protect car owners against monetary obligations occurring from theft and accidents. There are also main factors that should be considered before buying a car insurance; and these factors include,

• The car’s insured declared value.
• You should gauge your car’s age and choose the right plan.
• Choose the right insurance based on the car’s functions. If the car is used a lot, comprehensive insurance is best. If it’s not, third-party is best.

It is always good to add a protection gadget to your car through insuring it.

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