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

Third Party Car Insurance – Costs and Benefits

Third Party Only car insurance is the most common cover and the minimum required for any vehicle to operate on Kenyan roads. In this article we examine the costs and benefits of a typical cover for different classes of vehicles.

It is mandatory by law for every motor vehicle on Kenyan roads to be fully insured as per the Kenya Law Cap 405.

Therefore, the Third Party Only (TPO) is the most common car insurance in part because it is necessitated by the law and also it is the most affordable option.

Old / Cheap Cars

Many insurance companies in the market only offer TPO covers for cars that are above 15 years of age or below KSh 500,000 in market value. This is because these two categories of cars would be prone to write off in case of accident due to the high relative repair cost and also shortage of spare parts for the old model cars.

Third Party motor insurances are also common with car dealers who need temporary insurance to drive the vehicles on the roads. This is the 1 month car insurances that go for as low as KSh 2,000. Check out the details of the 1 month car insurance by following this link  

To better understand the Third Party Only (TPO) motor insurance, let’s take a look at an example schedule of the liabilities covered and typical limits borne by the insurance company.

Liability Limit (KSh)
Third party property damage 20,000,000
Third Party bodily injury/death any one person 3,000,000
Third Party bodily injury/death any one event UNLIMITED
Passenger Legal Liability – per person 3,000,000
Passenger Legal Liability – per year 20,000,000

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Private Cars

This is the most common cars that take out this TPO cover. This is mainly for the cars that are either too old or low value car. The cover is usually for calendar although it is possible to get a 1-month cover at a cost of KSh 2,500.

For the annual cover, the cost of the insurance is normally charged from as low as KSh 5,063 up to KSh 7,574.

Commercial Cars

For commercial vehicles, the third party insurance varies depending on the purpose of the vehicle. In this class, we are talking about vehicles like tippers, pickups, canters, lorries and others of the same nature. Further, there are two categories:

Own Goods Carriage

This is where the insured vehicle is used by the owner to carry goods for his/her personal business. This is common with pickups and canters owned by companies and used in the transportation/delivery of company goods.

Below an example for the First Assurance Motor Commercial for Own goods insurance premiums rates

Tonnage Insurance Cost (KSh)
0-3 7,500
4-8 12,000
9-10 18,000
11-20 20,000
21-30 25,000

Commercial Goods / General Cartage

This class refers to the bigger commercial vehicles like lorries, tippers, trailers and others that are owned by mainly transport companies and are used to transport goods for other entities for reward. As such, the liabilities on this kind of vehicles is much higher than other commercial vehicles. The cost of TPO for a commercial starts at KSh 25,000 for a 30 tonne trailer.

PSV Chauffeur Drive (UBER/LITTLE/TAXIFY)

This is the second most common category of cars on the Kenyan roads. This comes after the explosion of the on demand ride hailing industry globally and in the region. It is called Chauffeur Driven because in practice only driver is in charge of the vehicle. For this category, not many insurance companies in Kenya offer the TPO cover so it’s advisable to shop around. The price starts from KSh 4,310 for a month inclusive of Passenger Legal Liability for 4 passengers and all taxes and levies. For the annual cover the price starts from KSh 9,586 again all-inclusive. Because of the nature of this class, it is mandatory to have PLL cover because of the fare paying passengers.

PSV Self Drive / Car Hire
These types of vehicles are mainly owned by leasing companies. They are for short to long-term lease where the customer drives him/herself. Because of this nature of business, it can be a high-risk business. Cars are exposed to different types of drivers who have little financial interest/incentive to use the vehicle properly. For this reason many car insurance companies in Kenya don’t insure vehicles operating under this business. The price for this starts from KSh 12,000 for the basic cover and then KSh 500 PLL for each passenger in the car. Taxes and levies include the stamp duty at KSh 40 and Policy Holders Compensation Fund (PHCF) at 0.45% of the basic insurance premium.

Special Vehicles

Special Types Vehicles Insurance

The cost of the TPO insurance for special vehicles depends on the nature of the vehicle. Here we are talking about caterpillars, loaders, harvesters and other specialised types of vehicles. For example, a 2012 forklift cover will cost you KSh 5,000. Similarly, the cost is unchanged for a forklift. A TPO cover for a tanker of 15 tonnes will cost you approximately KSh 25,000. To get a good deal for these vehicles, it’s advisable to have the specifics at hand and get a tailor made quote.

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If you are looking for more information about third party car insurance or you want to compare insurance quotations, simply get in touch with us by chatting to an insurance expert online right now. In addition you can also compare real time quotes for third party car insurance by following this link