Tips On Getting An Affordable Motor Insurance Premium

Written by Wellington Ayugi

It is a common assumption that getting a good insurance package in Kenya is expensive. People have been known to spend significant sums of money on insurance premiums but most of them have lacked the right information on how to get real value out of an insurance product. 

The insurance sector in Kenya has immense potential that is yet to be realized especially by the consumers of the services.

According to data from the World Bank, the county’s growth in 2017 is projected to increase to 6.1%, with a growing middle-class that is projected to be almost half of the entire population. A growing middle-class population means there will be increased consumer needs. 

More Kenyans today desire the comfort and luxury of having their own personal cars. On top of this, banks have favorable interest rates and asset financing packages that have enabled many people to own their own cars.   

Despite the ready market for insurance in the country, the market penetration is still below 3%. So, why aren’t many Kenyans accessing the right insurance products? 

To begin with, insurance companies are still charging people exorbitant premiums and many people are still unaware of the variety of products and services available to them in the market.

When it comes to motor insurance, many vehicles in the country only possess the minimum required motor insurance cover (third-party insurance) due to the perceived expense of taking out a comprehensive cover.

Many motorists will typically take this third-party policy with a lower costing premium without considering how they will repair or replace their vehicles if loss or damage occurs.

Even though there is some logic to having high insurance premiums based on a variety of risk factors, you as the consumer of the service still have the ability to negotiate a cheaper premium for yourself. In order to assist you here are some tips.

Tips You Can Use For Getting A Lower Costing Insurance Premium

As a motorist, how can you ensure that you keep your vehicle insurance premiums affordable without having to sacrifice on the value of your car; you should:

  1. Compare a variety of motor insurance quotes: When you are shopping for a motor insurance quote, ensure you obtain as many motor insurance quotes as possible. Then compare them side by side to select the one with the best terms and rates for your car. Different insurance companies are in competition with each other for you as a client, and as such, they will be offering different value propositions for their packages, you just have to be patient and do a lot of research and find the right fit for you. 
  2. Update your car security and safety features: Having a vehicle that has a variety of in-built safety features such as, anti-theft devices, engine cut off systems, anti-lock brakes and airbags may qualify you for discounts on your motor insurance premiums. Statistics have proven vehicles with the above features are less likely to stolen or in involved in an accident, than those without.
  3. Fix any dents and bumps on your car: Many motorists have the tendency to ignore minor dents and bumps on their cars. So the dent may not be fixed because the cost of fixing it as a panel is high and the dent itself is negligible. However, if you are trying to get a cheaper insurance premium, the dents and bumps make you look like a careless driver and thus you may be charged a higher premium. 
  4. Inform your insurance provider of any vehicle modifications: In the event, you change your wheel size, car suspension, lights, engine, and anything else that affects the cars performance, your insurer will require you to declare it. If you do not mention these and other modifications, your insurer may decline to cover them under the existing policy in the event of an accident.

It is important to note that motor insurance is not the same as a commodity. The search for an affordable insurance service provider goes beyond just choosing what is cheap but ensuring that what you are also able to get a good insurance cover. 

So, it is important to do your research on the insurance product and package on offer and then search the reviews of any prospective insurer so that you can choose a company that is worth what you are paying for. 

Ultimately, your biggest strength is “negotiating”. Getting an affordable vehicle insurance premium is mainly about understanding the product, negotiating a good rate so as to maximize and enjoy every single benefit from the policy.

Once you secure a good insurance package, make it a habit to review the entire policy with your insurance provider every year. If your insurance provider is unwilling to review your policy and give you a better rate, by all means, shop around and find another one. Do not make your loyalty cost you any money that you could be saving elsewhere. 

Try out the tips above when you have to renew your insurance policy or when getting a new policy, and let us know your experience in the comments section below.

All the best!

Learn More:

  1. 5 steps to getting affordable car insurance
  2. Top 10 secrets for getting cheap car 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