📅 Category: Financing & Ownership | By: Clyde Motors KE | ⏱ 5 min read

The moment you drive a vehicle on a Kenyan public road, you are legally required to have valid motor vehicle insurance. For many first-time car owners, insurance feels like a confusing, expensive necessity that they set up once and try not to think about. But understanding your insurance properly — what it covers, what it does not, and how to get the best value — can save you significant money and prevent serious financial shocks if something goes wrong.

This is the guide we wish every new car owner in Kenya had before they bought their first policy.

The Two Main Types of Motor Insurance in Kenya

Third Party Insurance

Third party insurance is the legal minimum required to drive in Kenya. It covers damage or injury you cause to other people and their property in an accident. Critically, it does not cover damage to your own vehicle or injuries to yourself.

Third party insurance is very affordable — often KES 3,000 to KES 7,500 per year for most private vehicles. However, if your car is involved in a serious accident, you will pay for all repairs to your own vehicle entirely out of pocket.

Third party insurance is generally only advisable for older, lower-value vehicles where the cost of comprehensive cover exceeds the practical value of the protection.

Comprehensive Insurance

Comprehensive insurance covers everything that third party covers, plus damage to your own vehicle — whether from an accident, fire, theft, flooding, or vandalism. For any vehicle of meaningful value, comprehensive insurance is strongly recommended.

The cost is typically 4%–7% of the vehicle’s insured value per year. Insurers will ask you to declare a value when taking out the policy — this is the amount they will pay out in the event of a total loss, so it is important to declare an accurate and current market value.

Key Terms Every Car Owner in Kenya Should Understand

Excess (also called the deductible): This is the amount you must pay out of your own pocket before your insurer pays the rest of a claim. A policy with a KES 30,000 excess means that if your repair costs KES 80,000, you pay KES 30,000 and the insurer pays KES 50,000. Lower excess policies typically have higher premiums and vice versa.

No Claims Bonus (NCB): If you go a full year without making a claim, most insurers reward you with a discount on your next year’s premium — typically 10%–20%. After several consecutive claim-free years, this discount compounds and can reduce your premium meaningfully. Protect your NCB by paying for very small repairs out of pocket rather than claiming.

Agreed Value vs Market Value: Some policies pay out the agreed value declared at the start of the policy in the event of a total loss. Others pay out the market value at the time of the loss — which may be lower if the vehicle has depreciated. Understand which type your policy offers.

Exclusions: Every policy has exclusions — situations it will not cover. Common exclusions in Kenyan motor policies include driving under the influence of alcohol, using a private vehicle for commercial purposes without declaring it, and driving without a valid licence. Read your exclusions carefully.

How to Choose the Right Insurer in Kenya

The motor insurance market in Kenya is competitive, with many providers offering broadly similar products at varying prices. Here is how to choose wisely:

Compare at least three quotes. Premium prices vary significantly between insurers for the same vehicle and coverage. Use a broker or comparison platform to get multiple quotes quickly.

Check the insurer’s claims reputation. Price is not the only consideration. An insurer that is slow to process claims or disputes every settlement is not worth a small premium saving. Ask around in owner communities for real-world experiences.

Use a licensed broker. A good insurance broker shops the market on your behalf, explains options clearly, and advocates for you at claims time — often at no additional cost to you, as brokers are paid by the insurer.

Confirm the garage network. Some insurers require you to use their approved garages for repairs. Check whether those garages are reputable and conveniently located before committing.

What to Do When You Need to Make a Claim

If you are involved in an accident or your vehicle is damaged, follow these steps:

• Do not move the vehicles until you have photographed the scene thoroughly from multiple angles.
• Exchange details with the other party — name, phone number, insurance details, licence plate.
• Notify your insurer immediately — most require notification within 24–48 hours of an incident.
• Obtain a police abstract if the accident involved another vehicle or significant damage. Your insurer will require this.
• Do not admit fault at the scene regardless of the circumstances. Let the insurers and assessors determine liability.
• Keep records of everything — photos, police documents, communication with the insurer and the other party.

A Final Word

Insurance is not just a legal requirement — it is the financial safety net that protects one of your most valuable assets. Treat it seriously, choose your provider carefully, and review your policy every renewal period rather than simply auto-renewing.

At Clyde Motors, we are happy to point you toward reputable insurance providers and brokers when you purchase a vehicle from us. We want every client to drive away fully protected.

👉 Visit clydemotors.co.ke or WhatsApp us on 0740635621 for any questions about vehicle ownership in Kenya.