Types of Car Insurance Covers in Kenya. Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. Vehicle insurance may additionally offer financial protection against theft of the vehicle, and against damage to the vehicle sustained from events other than traffic collisions, such as keying, weather or natural disasters, and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.
Types of Motor Insurance Covers
Third Party Insurance Cover
Third–party insurance offers protection against damages to the third–party by the insured vehicle. It covers physical injuries, damages to the vehicle, damage to the property, and death. Exclusions. Third–party insurance does not provide any compensation, if: The accident was caused due to drunken driving.
This is the lowest tier cover issued by car insurance companies in Kenya. It also the minimum legal cover that every car must have to be legally on the road. The cover protects a car owner from the liabilities that may arise from third parties if the car is involved in the accident.
This cover does not protect the car owner from personal liabilities. If there are any repair costs to be met, the car owner must meet them himself.
Third Party, Fire, and Theft
Third-party only insurance (TPO) offers you the legal minimum level of car insurance cover, and is the most basic you’re able to get.
This kind of policy helps protect other people, vehicles and property in the event of an accident that was deemed to be your fault.
For example, say you drive into the rear of someone’s car, causing damage to the bumper and injuring the driver. Your third-party insurance would cover the cost of the other person’s car and medical expenses.
What isn’t covered, though, is damage to your own car or any injuries you suffer. For that, you’d need a comprehensive insurance policy. Otherwise those costs are on you.
In short, third-party only cover is the best way to ensure that, if someone suffers a road accident that isn’t their fault, their costs can be recuperated.
This is a second tier cover offered by insurance companies that cover three main risks. First, it covers third parties who may suffer injuries or losses as a result of your car being involved in an accident. This takes away all liability from you and places it on the insurance company.
Secondly, it covers you in the event that your catches fire and is destroyed. It is important to find out which exclusions apply to the types of fire that your insurer will pay for and the ones not covered exclusively.
This cover also protects you from liabilities associated with the theft of your car. This cover ensures that your car will be replaced by the insurance company in case it is lost to car thieves.
Comprehensive Insurance Cover
Comprehensive Cover is the highest level of cover a person can have if they take out motor insurance in the United Kingdom. In recent years, Comprehensive Cover has actually gone cheaper than the lesser cover ‘Third Party, Fire and Theft’ Cover in most cases.
This cover takes care of a wide range of risks that a motorist may suffer in the process of using his car. Its main features are as follows. The car provides all the benefits of the third party, fire, and theft cover and in addition, it covers car owners from liabilities arising from accidental damage to their car. Car Insurance Covers in Kenya
The definition of accidental damage is very critical to overall understanding of the Comprehensive cover. Ensure you have a clear idea of the exclusions that may exist on your cover as soon as you receive an insurance cover.
Was this article helpful?