EVERYTHING YOU NEED TO KNOW ABOUT CAR INSURANCE

Car insurance is an essential part of owning and driving a car. It not only protects you and your vehicle but also other drivers and their property. With so many types of car insurance and coverage options available, it can be overwhelming to choose the right policy for your needs. In this article, we’ll walk you through everything you need to know to make an informed decision.

TIPS FOR CHOOSING AN AFFORDABLE CAR INSURANCE POLICY

A. Shop around

It is advisable to shop around for best competitive prices from different insurance companies before settling for any insurance company. For different insurance companies offer different coverages at different prices and there is a high chance you will meet the one that fulfills your need at the lower price possible. Get quotes from multiple insurance companies and compare their quotes to access their coverage options and rates. At Bowman Insurance https://bowman.co.ke we help you hunt the best insurance policy option to meet your needs.

B. Assess your needs.

1.    Consider your driving habits. The more cautious you are on the road, the less or fewer incidents that can raise the pricing of your insurance policy.

2.    Know the type of vehicle to purchase. Before purchasing a new car consider asking around to know the rates each different model or type of vehicle would be priced.

3.    Consider your budget and level of risk to determine your coverage. In Kenya it is mandatory to have a minimum third-party insurance cover which is way much cheaper than a comprehensive cover. If you do not drive much and you consider yourself a cautious driver then a third-party cover might be the best option for you.

 4. Consider cutting down on excess. It is advisable to avoid paying for any extras if you don’t need them. For instance, this can be road side repair and maintenance to a car rental coverage. Be aware of any excesses before making any financial commitment and go through the policies thoroughly while cutting down any extra you might not need.

C. Take advantage of a multi car discount

Most insurers offer discounts for good driving, safety feature on your car and bundling policies. If you own a car, motorcycle or a home or you need a medical insurance for your family consider using the same insurance company for all of your policies. Bundling your car insurance with other insurance policies might be a good sign of showing loyalty to your insurer and you could land a discount.

D. Choose your parking area wisely

The location where you intend to park your vehicle overnight plays a crucial role in determining the pricing of your insurance policy.

E. Consider getting an actual valuation report for your car

To get the correct current market value since most insurers use the value of the vehicle to calculate the payable premium.

Factors that might affect the premium

1.    Age of the vehicle.

2.    Driving history

3.    Location

4.    Type of vehicle

5.    Coverage limits and deductibles

6.    Credit score

DOCUMENTS REQUIRED TO PROCESS A CAR INSURANCE POLICY

1.    A valid driving licenses

2.    Logbook

3.    National identity card

4.    KRA pin

5.    Premium

Let us explore different types of car insurance policies;

Third Party insurance- The minimum legal cover any car owner driving on public roads should have. It protects one against any third-party liabilities. At Bowman Consultancy Insurance Agency, we offer various insurance policies for different vehicle classes. Have listed the pricing of the mostly common products;

-Commercial vehicles- we charge 7500/= per year and the prices vary depending on the tonnage of the vehicle

-Private cars- charged at 5000/= per year

-PSV Uber- 8000/= per year

Third Party Fire and Theft only insurance- It covers all third-party liabilities arising from a road incident involving the insured. It also covers the insured vehicle against loss or damage by theft or fire.

Comprehensive insurance- it covers insured against any incidents, theft or fire, bodily injuries, accidental loss and any third parties’ liabilities arising.

For comprehensive policies, we have two ways in which payments can be done;

1.    Installments. We recommend at least three installments.

2.    Premium Financing (IPF).

On top of your comprehensive cover, you can consider adding the following optional benefits to secure your policy more.

1. Excess protector- it is an additional cover option for your main car insurance. Typically, it allows you to claim back your full policy excess on one insurance claim during the year-long life of the policy. It could be for a claim involving accidental damage, malicious damage, theft or attempted theft and fire, though policies can vary. Excess protector can be categorized into two:

a. Excess protector for own damage- Only covers claims arising from damage or partial loss i.e., small theft, vandalisms to the insured car

b. Full excess protector- covers own damage and total loss of the car from theft.

Mostly insurers price excess protector at a rate of 2.5% of the sum insured.

2. Political violence and Terrorism

3. Personal Accident cover- Mostly taken as an add on. A personal accident cover combines both the elements of a medical insurance and life insurance cover. It is good to understand that a standard car policy may have limits to emergency medical expenses and it does not cover any liabilities to family members. Including a PA cover is crucial.

4. AA cover- this cover gives you the benefit of your car been professionally towed or in case of any small break downs free of charge as long as your AA membership is active.

5. Courtesy car- In the event of a car accident or theft, car owners may suffer the biggest convenience. Without an alternative car to use while the accident vehicle is garaged for a many times unpredictable amount of time, the insured requires a replacement car. Most car insurance companies provide an option of a replacement courtesy car for a maximum of 10 days while the insured car is out of use. Because of the logistical challenges of providing an actual car, most insurers in Kenya consider offering a re- imbursement of 3,000/= for each day that the insured vehicle is out of use for up to a total maximum of 30,000/=

Although some insurers might consider bundling these policies and sell them as one. It is also good to consider your budget and only add the benefit you feel it would benefit you more.

What is covered under a comprehensive cover

Windscreen limit-

Radio cassette limit

Third party liability

Civil strikes, riots and commotions

What is not included

Third party liabilities outside Kenya- Your car insurance policy will not cover for third party liabilities should you consider leaving the country therefore, A COMESA yellow card policy is recommended to extend cover to members of the COMESA — Common Market East and South Africa while travelling out of their home countries. A COMESA yellow card extension can be obtained from your insurance company, it is charged per day of travel outside the home country.

Wear, tear and depreciation

Negligence — you should an accident be ruled out as an act of negligence or caused as a result of intoxicated substances then your claim will not be paid out.

Use beyond areas prohibited to the public for instance within the airport

For any further enquiries please reach out to us on;

Website: https://bowman.co.ke

E-mail address: info@bowman.co.ke

Phone number: +254724055524