Car Insurance Coverage and Cost Calculator

Car insurance is the biggest line of business in the Kenyan insurance industry. It is a requirement for all cars on the road to have a minimum of third party can insurance as mandated by the Kenya Cap 405. The combination of private and commercial car insurance premiums totalled to KSh 45 billions accounting for 36% of the total general insurance premiums for the year ending 2017. The market has over 30 general insurance companies offering most of the different types of car insurance. Therefore when planning to buy a car insurance cover, it is important for the customer to understand what’s available and at what price. In this article we discuss the different classes of motor insurance available and average costs of each.

Private Vehicles

This is the largest group of vehicles in Kenya and account for the biggest share of insurance premiums too. These are commonly saloon, sedans and SUV vehicles used for personal and family errands. For these types of vehicles, insurers in the market are coming up with new products which use telematics to price the insurance based on factors like driving habits, amount of time on the road, mechanical condition of the car and more. Heritage insurance has recently launched its telematics based insurance called Auto Correct insurance which promises to reward good driving customers with up to 15% cash back of their annual car insurance premiums.

Comprehensive Insurance

For most car owners, this is the cover of choice when it comes to insuring their vehicles. These covers against loss and damage from accident, fire, floods and natural calamities.

The cost of comprehensive insurance starts from about 3.2% for basic insurance subject to minimum premium of KSh 15,000 depending on the insurer. There is a limit to the age of the vehicle, most insurers don’t take on vehicles more than 12 years old or less than KSh 300,000 in market value.

Two common add-ons on the private car insurance are the Excess Protector for Own Damage and the Political Violence and Terrorism cover. These are charged at a rate of 0.25% of the vehicle value subject to a minimum premium of KSh 2,000.

Third Party Fire & Theft

This is a mix of the comprehensive and third party only motor insurance classes. As the name suggests (third party fire and theft), it only covers third party liability for property and bodily injuries and fire and theft of the insured motor vehicle. That means that in case of a road accident, the insured client has to foot the cost of the repairs to the insured car. The price for this starts from 2.5% of the value of the car. This means that for a car of market value 1 million, the annual premium would amount to KSh 25,000. From this pricing, it is clear why this class of motor insurance is not popular in the market, the cost is on the higher side while the coverage is not much to write about. This is the reason why most customers in the market go for either comprehensive cover or third party only.

Third Party Only Cover

The Third Party car insurance is the most popular car insurance cover on the road. It also the most affordable on the market ranging from KSh 5,063 – 7,574 per annum. It is important to note that does not cover damage or loss of the insured vehicle. It only covers the insured against third party liabilities for property damage or bodily injuries. The total aggregate annual limit is KSh 20 millions with the limit for any one event capped to KSh 3-4 million.

Public Service Vehicles (PSV)

These are another popular class of vehicles on the road. They comprise of the online ride hailing apps like UBER, BOLT and Little. These are classed as PSV chauffeur driven vehicles. They have revolutionised the taxi industry by reducing costs and bringing convenience.

Another category under PSVs is the self drive vehicles. This is commonly referred to as leasing/car hire. Members of the public can hire a car for a given duration to use to run their own errands.

Last nut not least is the Matatu PSV common in urban centres like Nairobi, Kisumu, Mombasa etc. This has its own class of insurance offered by Directline and Invesco Assurance.

Comprehensive Cover

This is the most common cover taken for this class of insurance. Some of the online taxi hailing apps require the cover to be full comprehensive.

The insurance rate starts from 5% of the vehicle value minimum of 25,000. This is one of the most expensive covers due to the nature of the high risk market. Many insurance companies offering this cover charged upwards of 6% and don’t and completely exclude the excess protector option on this class of vehicles.

Third Party Only Insurance

While this is still not common, many partners and drivers on the online hailing apps are still opting for it. This is a package that contains third party liabilities covering and also the passenger legal liability for paying passengers. Because it does not cover the vehicle against accidental damages and theft, people operating in this business stand to incur heavy expenses if the vehicle is involved in an accident.

Prices start from KSh 9,583 inclusive of PLL for 4 paying passengers.

Commercial Vehicles Insurance

This is the second biggest group of vehicles on the road. These include lorries, trucks, pick-ups, canters and more. Furthermore, they are divided into 2 classes

Own Goods and General Cartage. For the own goods, these are vehicles owned by an individual or entity used to carry their own goods/merchandise. General cartage, the vehicles are owned by entity and used to transport goods for customers/third parties for reward/hire. An example of this is transporter companies.

Comprehensive insurance for Own Goods carriage vehicles starts from 4.5% of the value of the vehicle for a basic car insurance. Excess protector for own damage and PVT are charged at 0.25% each subject to a minimum premium of KSh 3,000.

For general cartage, the corresponding insurance are a bit higher because of the nature of the business. The prices start from 5% of the vehicle value for the basic car insurance. Other add-ons are charged at 0.25% with a minimum premium of KSh 5,000 each (Excess protector for own damage and political violence and terrorism).

In addition, for the commercial motor insurance covers 2 add-ons are

  • Personal accident cover for the driver and turn boy.
  • Courtesy car (or loss of income while the vehicle is under repairs)
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IF you are looking for a quote for car insurance for private, PSV and commercial vehicles, compare the benefits, insurers and prices available on the market. Compare all the packages by getting 10 quotes online here https://www.pesabazaar.com/insurance/motor-insurance/comprehensive

List of Best Car Insurance Companies in Kenya (2019)

These are the top ranked car insurance companies in Kenya by premium size. Get a quote from the biggest insurers in the market

Car insurance is a mandatory class of insurance for all motor vehicles operating on public roads as per the Kenyan laws. This explains why this class of insurance business is one of the biggest if not the biggest line for most general insurance companies.
Unfortunately it is also the class of business that experiences the highest number of claims as a result of accidental damage and theft of motor vehicles. In this article, we examine the different types of car insurances, categories of cars (based on use) and lastly the top car insurance companies in the Kenyan market. Every car/motor bike owner in Kenya requires some form of insurance cover, when choosing the insurance company, it helps to select the best and biggest providers to make sure you are getting peace of mind.

Types of Car Insurance in Kenya

There are three types of car insurance in the Kenyan market :

Comprehensive

Comprehensive insurance is the recommended cover for most vehicles and covers the insured asset (vehicle) and all third party liabilities as well. It covers the vehicle against accidental damage and theft, fire, floods and storms among others. The most common optional add-ons for this cover are the excess protector for own damage and also the political violence and terrorism rider.

Third Party Only (TPO)

This the most basic type of cover as mandated by Cap 405. Act Title: Insurance (Motor Vehicle Third Party Risks). For all motor vehicles operating on Kenyan roads, this is the minimum level of insurance cover required. As the name suggests, it only covers the insured against third party persons and property liabilities. This is the commonest car insurance being the most affordable. In addition it is the only insurance suitable and offered for old or low value cars.

Categories of vehicles

Private

These are the cars for individuals, families and organisations which used for private and social purposes e.g. commuting to work, taking children to school

Commercial

These are vehicles normally used by businesses for official purpose e.g. lorries for construction sites, pickups for ferrying goods etc

PSV Self & Chauffeur Driven

These are most commonly the saloon cars used to ferry fare paying passengers and are common with registered taxis, airport taxis, online ride hailing apps like Taxify, UBER, etc

MATATU

These are the public service vehicles comprised of mini buses and various sizes of buses. They are the main means of public transport in most urban centres. They require a specific type of insurance from other PSV vehicles. For a detailed breakdown of psv Matatu insurance covers, check out this blog post.

Special purpose

This category comprises of tractors, graders, cranes, mixers, excavators and other specialised vehicles used in various types of construction.

  1.     CIC Insurance Logo  CIC Insurance 

CIC is the undisputed king of motor insurance in Kenya topping the premium tables for both private and commercial motor insurance as at end of 2017. It underwrote a total premium of KSh 2.9 Billions comprising of 2.4 B of motor private and 2.5 B of motor commercial insurance. It is one of the most financially solid insurance companies, listed on the Nairobi Stock Exchange (NSE) and has branches all across the country.

With such a large share of the motor insurance, it unsurprisingly also suffered a combined underwriting loss of close to KSh 560 millions

Total premium: KSh 4.9 Billions

  1.       UAP Old Mutual InsuranceUAP Old Mutual Insurance

After the merger of UAP and Old Mutual, the company has become a financial services powerhouse spanning the entire region. It offers services from asset management, life and medical insurance, general insurance, savings and deposit takings, micro-finance and a whole host of others. For the year ended 2017, it underwrote a total premium of KSh 2.7 Billions with 1.7 Billions coming from the private motor class. During the same year, it launched its innovative EasyDirect product, a unique direct channel for customers to buy their car insurances online. It suffered a loss of over KSh 165 million in the motor book mainly caused by the loss of KSh 400 millions in the motor private insurance book.

Total Premium: KSh 2.7 Billion

  1.     BRITAM Insurance CompanyBRITAM Insurance

BRITAM is a heavy weight across the financial services spectrum in Kenya and in the region. It underwrote premiums of KSH 2.6 Billions for the motor book. This was finely divided between the private and commercial classes. Similar to competitors it also suffered a loss of close to KSh 595 billions from this class of business. From its leadership in the life insurance business, BRITAM has managed to ride on that to grow its general business lines through a mix of mergers and acquisition and business expansion.

Total Premium: KSh 2.6 Billions

  1. APA Insurance       APA Insurance

APA insurance is another brand that has used its powerful life insurance and asset management brand to grow its general business line and medical insurances. In the last 5 years, APA as emerged into the pack of top general insurance providers. It underwrote a premium of KSh 2.3 Billions finely split in the private and commercial segments. Surprisingly, it made an underwriting profit of close to KSh 160 millions making it one of the most profitable car insurance companies in Kenya. APA has a long track record of strict underwriting, it has shied away from risky business lines and the industry malpractice of price undercutting.

Premium: KSh 2.3 Billions

  1. Jubilee Insurance    Jubilee Insurance

Jubilee is the biggest brand in the insurance market here in Kenya and in the region having just celebrated its 80 years anniversary. Jubilee car insurance falls down a number of steps in the rankings having been top in the previous year. It underwrote a premium of KSh 2 Billions with just under KSh 1.3 Billions coming from the private motor insurance book. Unlike its competitors, Jubilee made an underwriting profit of KSh 110 millions for the motor business.

Premium: KSh 2 Billions

  1. Invesco & Directline Assurance

These are the only 2 general insurance companies in the market that offer cover for the notorious MATATU segment. Due to the high-risk nature of the industry, only two insurance companies own 100% of the market to be able to generate sufficiently large premiums to cushion the risk.

Invesco earned KSh 2.9 Billions from this class alone while Directline underwrote a premium of KSh 1.9 Billions for the commercial motor segment.

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BRITAM Car Insurance Cover

BRITAM is the third largest car insurer in Kenya and offers cover for all kinds of motor vehicles except the MATATU industry. These are some of the details of the BRITAM motor cover.

British American (BRITAM) is one of the largest insurance and investments companies in the region with areas of operation from Kenya, Malawi, South Sudan, Rwanda, Mozambique, Uganda and Tanzania. In Kenya, BRITAM is the second largest life insurance company closely behind the industry leader JUBILEE. BRITAM is listed on the Nairobi Stock Exchange and boasted of record profits of KSh 1.4 Billions half-year profits in 2018.

BRITAM car insurance is of the largest insurance portfolios in Kenya totalling to KSh 2.5 billions in premiums at position number 4 in the market. On the list of the top car insurance companies, BRITAM comes behind CIC Insurance, UAP Old Mutual Insurance and APA insurance company. It underwrote car insurance premiums of KSh 2.6 Billions in 2017 putting it in third place. Similar to the rest of the industry, it also suffered a big underwriting loss in this class of close to KSh 600 millions

BRITAM offers car insurance for private vehicles, commercial vehicles and also the popular class of chauffeur driven vehicles operating on the ride hailing apps like UBER, Taxify and LITTLE. In addition it also offers car insurance for hired vehicles, these are vehicles, which are leased out to members of the public who wish to self-drive.

The BRITAM car insurance policy is divided into the following key sections:

1. Accidental loss or damage to own vehicle

This may be resulting from the collision, overturning, fire damage or theft of whole or part of the vehicle.

2. Third Party Liabilities – legal liabilities arising out of ownership or use:

This includes damage to property and belonging of other people, vehicles and buildings. In addition to death and injury of pedestrians and members of the public and death and injury to pedestrians

3. Emergency Medical Expenses to driver or passengers or pedestrians following an accident

This policy covers different types of vehicles including the private motor vehicles, commercial vehicles like lorries and pickups for commercial and own goods carriage and last also the PSV chauffeur driven vehicles like UBER and Taxify vehicles.

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The BRITAM motor insurance cover also gives the following special benefits:

i. Free cover for windscreen, theft of audio and video accessories which are not subject to excess

ii. Free cover for spare wheel, jack and tool box for the insured vehicle

iii. Free cover for protection, recovery & towing after accident

iv. Non Claim Discount (NCD) – this goes up to 60% depending on the number of years for not claiming

v. Discount on fleets of vehicles of size ranging from three vehicles and more

vi. Flexible premium rates and terms

vii. Cover for damage to vehicles in the custody of Motor Trader or Garage

viii. Geographical scope – Kenya, but can be extended to other East African countries on request

x. Authority for emergency repairs up to an agreed limit as per the car insurance policy document

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