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.

Car Accident

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

Compare 10 car insurance quotes online!

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.

GET A QUOTE

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

Leave a Reply

Your email address will not be published. Required fields are marked *