A motor insurance is purchased for cars, trucks, motorcycles and commercial road vehicles. Motor insurance is a mutual agreement between the insurer and insured wherein the insured pays a fixed annual premium to the insurance company. In return, the insurer agrees to provide a financial cover to the insured in case he/she suffers a car accident, theft, third –party bodily injury or death, third party property lose any natural calamity. In simple words, car insurance kenya is a policy that protects the insured against any financial contingency arising due to accidents, theft or damage. Insurance of motor vehicles against third party risks is compulsory in Kenya and it is an offense for any person to use any motor vehicle without the insurance cover. When you buy motor insurance, you contribute a sum of money called premium into a common pool. The few unfortunate contributors who suffer losses are paid out of this pool and in any case, nobody wishes to be involved in a loss situation in order to be paid out of the pool. The total premium contributed into the pool should be adequate to meet all losses suffered in any one year. In addition, other costs of operating the pool including profit for the insurer needs are met by the pool. Any failure in meeting the above costs leads to a loss for the insurer.