Motor Insurance Calculator

How Much Does Car Insurance Cost?

Motor insurance covers you against loss or damage to your own vehicle due to accidental fire, theft, accident, third party bodily injury or death, third party property loss or damage. Insurance of motor vehicles against third party risks is compulsory in Kenya and it is an offense for any person to use motor vehicle without the insurance cover.

Each motor vehicle insurance company offers attractive packages, but a deeper look at these reveals the best from profane motor insurance quotes in Kenya. Depending on your car insurer, value of your car, previous accidents records, experience driving, age, and your car's spare parts availability among other factors, your comprehensive car cover premiums may defer from another car owners'.

Some insurance companies extend extra benefits, which include rescues from breakdowns and emergency road services, reimbursement, vehicle tracking and loan repayment. Others include an "Excess" clause in the paperwork that includes the car owner paying for some of the damages incurred in an accident. This is mainly to help curb negligence on roads, but it also allows the car owner to pay less monthly premiums.
When you buy motor insurance, you contribute a sum of money called premium into a common pool. The few unfortunate contributors who suffer losses are paid out of this pool and in any case nobody wishes to be involved in a loss situation in order to be paid out of the pool. The total premium contributed into the pool has to be adequate to meet all losses suffered in any one year. In addition, the pool meets other costs of operation including profit for the insurer. Any failure in meeting the above costs leads to a loss for the insurer.
Motor Third Party This cover protects you against third party losses including death, bodily injury and/or property damage.Data supplied by industry experts indicates that this package accounts for the majority share of the over 60% car insurance in Kenya mostly because insurance of motor vehicles against third party risks is compulsory in Kenya, according to the Insurance Regulatory Authority (IRA). Third party insurance is the auto cover that protects other road users apart from the car owner. This implies that in the event a car was involved in a road accident, the passengers, passers-by, damaged buildings and passengers in the other vehicle are compensated using funds from this policy type. It is the basic policy in car insurance in Kenya.

Motor Third party Fire and Theft This cover protects you against all third party risks mentioned above in addition to loss and/or damage to your vehicle due to theft and fire.

Motor Comprehensive This protects you against the third party's death, bodily injury and/or property damage as well as loss/ damage to your vehicle due to accidental fire, theft or an accident. This is an all-inclusive package that includes covers against loss or damage of the car itself such as against accidental fires, floods, hijacking, theft, earthquakes, damage from falling objects, riots (some companies) and also includes insurance against third party deaths and/or bodily injury and passenger liability. Comprehensive motor vehicle insurance can be taken to insure specific parts of the car as well e.g. windscreen and car radio. This policy appreciates that a car is a worthy investment that deserves insurance against damage, and the owner can turn to the package when the adverse affects his/her car. You can only claim compensation for damages to your car if you have a comprehensive cover.
The first party in a motor insurance contract is you as the vehicle owner and the second party is the insurer. The third party is a person who suffers property damage or loss or death or bodily injury as a result of an accident involving your motor vehicle. A third party may be any person including a property owner, a pedestrian, a driver or passengers in another vehicle.
Do
  • Disclose all material facts on the risks to be covered.
  • Answer all the questions fully and accurately.
  • Complete and sign the proposal form yourself.
  • Establish the market value of your vehicle by having it valued preferably by an assessor.

Don't
  • Leave any question in the proposal form unanswered.
  • Withhold or misrepresent any material facts otherwise the certificate of insurance will be void and claim can be repudiated.
  • Underinsure, as you will be penalized by the application of average in the event of a claim.
Sum insured This is the total amount (maximum) of money paid to the car owner by the car insurance company after an accident happens and the former files a claim. This is calculated based on your car's current market value. A car's current market value should not be understated since if an accident happened you are likely to receive less compensation that you are entitled to.

For example, stating your car's current market value as KSh800,000 when it is actually KSh1,000,000 and during this time you incurred a KSh200,000 loss, the car insurer will only pay you (loss value(200,000) x stated value (800,000) and the total divided by the actual value (1,000,000) KSh160,000 instead of the full Ksh200,000.

Indemnity is where your insurer places you back in the same financial position as you were immediately before the loss. This means that you cannot profit or lose from motor insurance.

Excess is the uninsured portion of the loss that you have to bear in an insurance claim. Excess is a percentage of the sum insured and is paid to the insurer for any repairs in case of accidental damages. In cases where the vehicle is stolen or is a write off/total loss, the excess shall be paid before the final claim payment to you. However, the policy may specify a minimum of excess amount.

Policyholder Compensation Fund is a safety net established by the government as part of a reform agenda that helps mitigate the adverse effects of an insurer's collapse on a policyholder. PCF does this by paying policyholders compensation for their unsettled claims; currently KSh100,000 per policyholder claim, but can be determined by the Board in charge in consultation with the Cabinet Secretary, Finance. It is a state corporation and aims at boosting confidence in the industry and advice the Government on proper consumer protection policy. Contributors grow the fund by paying levies.

Training Levy Refers to a fee levied on the industry for the establishment, development and running of a college of insurance to supply informed and skilled personnel in the insurance industry in Kenya.
Your vehicle should be insured for its current market value i.e. the cost of replacing your vehicle with a similar make, model, age and condition. If the amount covered is less than the market value, then the average condition shall apply. The average condition is the penalty for underinsuring your vehicle.

For example: if the current market value of your car is Kshs. 800,000 and you buy insurance of Kshs. 600,000 for the car and you later suffer a loss of Kshs. 100,000, your insurer will pay as follows: 100,000(loss value) x 600,000(insured value) = 75,000. The insurer will only pay 75,000 instead of 100,000 while you have to bear the difference of Kshs. 25,000.
Your motor insurance will not cover the following:
  • Your own death or bodily injury
  • Damage to tyres only unless the vehicle is damaged at the same time
  • Consequential loss, depreciation, wear and tear, rust and corrosion, mechanical or electronic breakdowns, equipment or computer malfunction.
  • Loss or damage occurring outside the geographical area.
  • Loss or damage caused by or due to cheating.
  • Loss or damage accessioned whilst an authorized driver is driving the vehicle.
  • Driving whilst under the influence of alcohol
  • Loss or damage or liability caused by the vehicle being used for an unlawful purpose.
Yes, you may opt to cancel your insurance cover by giving written notice to your insurer. Upon cancellation, you are entitled to a refund of your premium. However insurers will penalize you for the early cancellation. You must return the insurance cover to the insurer.
No, the insurance certificate becomes invalid immediately the owner sells the car. The new owner has to take up new insurance for the car. However, you can request through a written notice to your car insurer for a refund before transferring the rights to the car's new owner.
If you are involved in a motor accident, the general rules that you need to observe include obtaining the following details related to the accident:
  • Names and addresses of all drivers and passengers involved in the accident.
  • Registration numbers make and model of each vehicle involved in the accident.
  • Details of the driving license, insurance policy and certificate of the third party driver.
  • Names and addresses of as many witnesses as possible

Also:
  • Take safe actions to prevent further damages and injuries such as calling the police and moving the vehicle to safe custody.
  • Report the loss to the police within 24 hours of the accident if possible.
  • Notify your insurer of the loss as soon as possible and follow this with a written notification.
  • Send all supporting documents including Police abstract report, your driver's license and driver's statement of the loss immediately to your insure
If you have a comprehensive cover, you can claim for damages to your vehicle:
  • Check with your insurer for the list of approved garages where you can take your vehicle for assessment and repairs.
  • Submit the fully completed Motor Accident Claim Form together with all supporting documents immediately to your insurer.
  • Cooperate fully with assessors or investigators appointed by your insurer.
  • Do not instruct repairs unless authorized by your insurer.
  • Submit the fully completed Motor Accident Claim Form together with all supporting documents immediately to your insurer.
  • Cooperate fully with assessors or investigators appointed by your insurer.
  • Do not admit liability to the third party and /or any other party.
  • Inform your insurer of any third party or potential third party claim.
  • Refer all third parties and/ or their representatives to your insurer on all matters.
You cannot claim for vehicle repair costs from your own insurer if you have a third party only insurance cover. In this case you may need to claim from the insurer of the other vehicle with which you were involved in the accident. However, since you are a third party to this insurer, you should observe some conditions:
  • To notify your own insurer of the loss.
  • To notify the insurance company against which you are claiming as a third party.
  • To follow the instructions given by both insurance companies and submit all supporting documents they may call for.
  • Report to the police immediately.
  • Notify your insurer by telephone within 24 hours of discovery of the theft where applicable.
  • Submit a duly filled Motor Accident Claim Form.
  • Report to the police immediately.
  • Notify your insurer by telephone within 24 hours of discovery of the theft where applicable.
  • Submit a duly filled Motor Accident Claim Form.
  • Follow the instructions given by your insurer and cooperate fully with them during the course of investigations of the theft.