How to pick the right insurance cover for your car

With the rampant road accidents on Kenyan roads, vehicle theft and repair costs steadily rising, insurance is no longer just a legal requirement; it is a critical layer of financial protection for vehicle owners.

Buying a car is only the beginning of the journey. The bigger question often comes later: what type of insurance cover is right for your vehicle?

From navigating town traffic to long-distance drives across the country, motorists face daily risks ranging from accidents to theft and, at times, even rowdy mobs.

Yet many drivers still struggle to understand the differences between the three main types of motor insurance available in Kenya.

This week on Motoring, we delve into the different types of insurance that exist and why choosing the right policy will always be dictated by the value of the vehicle, driving habits, and the level of financial protection a motorist needs.

How motor insurance works

Motor insurance is essentially a contract between a vehicle owner and an insurance company. In exchange for an annual premium, the insurer agrees to compensate the insured against specified losses or damages.

Under the Traffic Act, every vehicle on the road must have at least Third-Party insurance as required under the Traffic Act.

Insurance policies are generally divided into three main categories:

Third-party

Third-Party Only insurance is the minimum cover required by Kenyan law and remains the most affordable option for motorists.

The policy protects other road users against damage caused by the insured driver.

This includes compensation for bodily injuries, death, and damage to another person’s property, such as vehicles, walls or gates.

However, the Third-party does not cover damage to the insured person’s own vehicle.

"If the car is involved in an accident, stolen or damaged by fire, the owner bears the repair or replacement costs. This is simply because of its lower premiums," Vincent Makanga, an insurance agent in Nairobi, told The Standard.

The policy is commonly preferred by owners of older or lower-value vehicles.

Third-party, Fire and Theft

For motorists seeking more protection without the higher cost of comprehensive insurance, Third-Party, Fire and Theft offers a middle-ground solution.

The policy includes all the benefits of third-party cover while also protecting the vehicle against fire damage and theft.

"The insurers at times, may also compensate motorists for damage caused during an attempted theft," Makanga weighed in, giving an example of an incident where a luxury Lexus LX600 valued at approximately Sh35 million was stripped to its shell by a gang of over 20 thugs in Kirinyaga Central in February 2026.

Industry players say the cover is increasingly popular among motorists concerned about rising vehicle theft cases and the growing cost of repairs.

Comprehensive insurance

Comprehensive insurance remains the highest level of motor cover available in Kenya and is often mandatory for vehicles under bank or any other financing institution.

In addition to third-party, fire, and theft protection, the policy covers accidental damage to the insured vehicle regardless of who caused the accident.

If the vehicle is declared a total loss, compensation is based on its market value.

Most comprehensive policies also come with additional benefits such as windscreen cover, towing and recovery services, courtesy cars, and protection against political violence and terrorism.

"Under this cover, motorists can also add optional features like excess protectors, which reduce out-of-pocket expenses when making claims," Makanga stated.

Insurance advisers recommend comprehensive cover for new, high-value, and frequently used vehicles due to the broader financial protection it offers.

How claims are processed

After an accident or loss, the insured is expected to notify the insurer immediately and provide supporting documents such as a police abstract, a copy of driving licence, photos of the accident, repair estimates, and completed claim forms.

The insurer then assesses the damage through a loss assessor or approved garage before authorising repairs or compensation.

Failure to report incidents promptly can lead to rejection of claims.

Choosing the right policy

Motorists should assess several factors before selecting an insurance policy, including the value of the vehicle, annual premium costs and exposure to risks such as theft or frequent long-distance travel.

While cheaper policies may help reduce costs in the short term, inadequate cover can leave motorists exposed to significant financial losses in the event of an accident or theft.

For many drivers, the right insurance policy ultimately comes down to balancing affordability with peace of mind on the road.

On the same note, Makanga the insurance broker, warns that motorists should declare correct vehicle usage.

"For example, a private car insured for personal use should not be used commercially without informing the insurer. This misinterpretation can invalidate the policy," he said.

The don'ts of motor insurance

Never drive without a valid insurance since it is illegal under the Traffic Act and can result in fines, prosecution, or impounding of the vehicle.

Do not fake claims since fraudulent and exaggerated repair costs or staged accidents can lead to criminal charges and blacklisting by insurers.

It is also advised to avoid delayed premium payments since missing the payment automatically renders the policy inactive, leaving motorists exposed.

Lastly, never assume everything is covered. Wear and tear, mechanical breakdowns, and drunk-driving incidents are often excluded from standard policies.