How to Estimate the Cost of Car Insurance in Kenya?



How do you estimate the cost of car insurance in Kenya? Here is a guide for those planning to take insurance cover in Kenya for their cars

There are more than 30 different insurance companies working in Kenya offering car insurance products to the residents. The growing competition in last few years not only decreased the cost of car insurance significantly but also encouraged insurance companies to push the range of different products and offers to penetrate deep into the market.

With variation in offers, insurance companies, and coverage features, there is also a significant difference in price. If you are shopping for a car insurance that offers the best value for your money, a little insight into different factors that can affect your cost can help you negotiate the best deal with your insurance provider. Listed are few factors that can affect the cost of your car insurance premium.

The Cost of the Car

The first and the basic factor that influences the pricing is the cost of your car. For cars that cost more than Ksh 1 million, the average insurance rate in Kenya is 4.5%. For cars that cost between Ksh1 million and Ksh 5 million, the average rate is 3% while for the cars that cost less than Ksh 1 million the average premium cost is 3.25% of the car value.

This is the basic average premium you have to pay to insurance provider but this rate is also influenced by many other factors as listed below.

Type of Car

You can expect to pay 10% less if you own a SUV or any other 4 wheel drive but if you own a sport car, you have to pay 20% extra of your basic premium rate.

If you are buying insurance for your brand new car, you can negotiate to decrease up to 10% on your premium rate. But if you own a car that is more than 5 years old, you will be forced to pay more.

Benefits and Additional Features

Some of the benefits that come with car insurance policy in Kenya 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.

Stamp Duty

Car Insurance cover attracts stamp duty. The money you pay goes direct to the government and is normally Ksh 500

Training Levy

You also have to pay training Levy, which vary depending on the cost of your car.