Your car needs to be insured to be on the road. The minimum insurance cover you need is third party cover. Third party cover is the lowest type of motor vehicle insurance and, therefore, the cheapest. The other two types of insurance cover is third party fire and theft and comprehensive. Here is a look at each of them:
Read: 5 Useful Facts About Motor Vehicle Insurance In Kenya You Should Know
Third Party-Only Motor Insurance
This is the minimum type of insurance cover you need for your car to be on the road. It covers you against third party property damage and bodily harm you cause with your car. Your insurance will compensate people whose cars (and other properties) were damaged or were injured by your car as a result of your fault.
This type of insurance does not cover you, your family and their property. It does not cover damages to your car and it does not cover damages as a result of theft or fire.
Most of us take this cover for our cars owing to it being cheap, we are confident in our driving skills and have a low exposure to accidents. This means we rarely ever find ourselves in accidents. We can also afford to repair our own cars. The most we get in are fender benders which are sorted amongst ourselves without involving insurance companies.
Third Party Theft and Fire Motor Insurance Cover
This insurance type comes in handy if your car does not qualify for comprehensive insurance due to age. On top of third party cover (compensating third party due to damages to themselves and their cars), it also covers your car against theft and fire. At an extra cost, you can also cover things like your windscreen and entertainment systems.
It will still not cover damages to your car, your family and their property.
Comprehensive car insurance cover
First time car owners almost always insure their cars comprehensively. Other cars that are normally covered comprehensively include cars attached to financial institutions, corporate cars, expensive cars and cars whose owners value the peace of mind of having such an insurance for their cars.
On top of covering third party damages, this insurance type also covers damages to your car. Different insurance companies have different benefit packages for their comprehensive insurance products on top of cover against damages to your car and third party injury, death and property damage. Such include:
- Cover against fire and theft
- Cover against windscreen and entertainment systems
- Emergency response and ambulance evacuation
- Roadside assistance and towing
- Cover against natural events and social perils such as floods and riots
Its important to note that insurance covers, especially under comprehensive, have terms and conditions that if violated can lead to claims being rejected. Its important to be familiar with them and know the specifics of what is insured and what is not insured. Some of these terms and conditions include:
- What the car was being used for at the time of accident will determine if a claim can be accepted or not. Using a private car to carry paying passengers will negate the claim if an accident occurs. Same is true if the car was being used to commit a criminal act.
- No excess passengers. It will negate your claim in case of an accident.
- You, the driver, and your immediate family are not covered incase of injury or death. Get a separate medical insurance or personal accident cover for such.
- Inform your insurance provider incase of any changes to your car, from minor such as colour change to major such as engine change, a new entertainment system, changing the car’s suspension etc.
- A cover cannot be transferred from one car to another.
