What is Covered by your Motor Insurance Package?

Written by Wellington Ayugi

The decision to get insurance for your vehicle is very important. It is something you should not consider lightly, but carefully assess all the facts before you approach a potential insurer.

To start with, you must consider the different types of motor insurance policies from different service providers taking the time to understand the fine details of each policy.

To assist you with this, we will examine the third party and comprehensive insurance policies, and determine their benefits to potential policyholders.

Third Party Policy

Third party insurance is very common among drivers on our roads. It covers third parties who experience damages resulting from accidents involving your vehicle and does not cover the car owners.

In Kenya, it is the minimum policy required by a law for a motorist to possess. A common misconception is that the policy does not really benefit the insured. On the contrary there a number of benefits to a third-party insurance plan:

  1. The most obvious one is you are now eligible to operate on the roads as a driver. Anyone without this plan is exposed to fines and penalties.
  2. The policy is designed for vehicle owners who do not want the comprehensive plan or are unable to pay the higher premiums of a more comprehensive cover. It is more affordable and less stressful on your budget.
  3. The policy comes in handy when you have caused an accident. All you have to do is get the third parties details and inform your insurance service provider. 

Comprehensive Policy

Comprehensive insurance provides cover against accidents caused by a third party or the policyholder. This includes damages the insured may sustain. This insurance package also extends to fire, theft, and vandalism.

However, you must note that a comprehensive insurance plan does not accommodate all the claims filed. So be sure you carefully study the policy terms and determine the exclusions if any are present.

Benefits of The Comprehensive Plan

  1. In the event that your car is stolen, the policy will replace it with a new one. 
  2. Some comprehensive policies protect against “Acts of God”; these are natural disasters such as floods, landslides etc. With this cover, you are assured the insurer will replace or repair the vehicle.
  3. In the case of an accident, both parties are covered and you need not bear the responsibility for paying any damages to your car or the other party.

A third party insurance coverage will offer you less cover than the comprehensive insurance plan. So you can get a third party cover if you want the basic cover, and your vehicle is not in good condition.

It is important to note that the premiums rates for old cars are prone to be higher due to their high-risk exposure. Comprehensive cover has a wider scope and will give you the peace of mind knowing you are fully protected.

Learn more:

  1. What does third party and comprehensive insurance actually mean?
  2. Interesting benefits of third party auto insurance


About the author

Wellington Ayugi

Wellington Ayugi handles Business Development at Covered and has a passion for personal finance, microfinance, and developments in financial technology