When you think of insurance, the first thing that comes to the minds of most people is car insurance. This is because it is the most common type of insurance since it is illegal not to have it if you own a motor vehicle. In as much as it is illegal to drive a car without insurance, there are some brave souls out there who still take the risk.
The risk in this case is first and foremost being caught by the Police and that we all know is not a good experience. The second risk that can arise is being involved in an accident where you as the driver is to blame. If you don’t have insurance, all liability for the damages arising from the accident would fall on you. Some of the amounts paid out by insurance companies are enough to bankrupt the best of us, so kids ensure to renew your insurance.
There are two types of motor insurance in the market, that is comprehensive and third party. Third party which is loved by most public service vehicles only covers claims arising from loss to third parties in the event of an accident. This includes the passengers and any the other vehicle plus its occupants if they were injured in the accident. The owner and the vehicle are not covered under this insurance cover and such he/she has to foot the bill for repairs to the car and also medical treatment. Even though the owner of the vehicle is at a disadvantage if and when an accident occurs, some people prefer this cover because it is cheap to procure. This cover costs Ksh. 7,500 regardless of the value of the car.
Comprehensive motor insurance just as the name suggests, covers almost all the instances that can lead to the loss or damage of your vehicle. Loss can be due to an accident, fire, flood, malicious damage, theft and third – party liability that can arise out of the use of the vehicle. However, it does not cover the owner of the car in case of an accident, so it is wise to also have a medical cover or a personal accident cover.
The comprehensive insurance cover is calculated at 4% of the value of the car. So if you have a car valued at Ksh. 1.5 Million, you would be expected to pay a premium of Ksh. 60,000. The value of the premium is what makes some people shy away from taking this cover but at APA Insurance, they give you an option of paying amount in 4 quarterly installments. This works to reduce the financial burden on the car owner and makes it easier to acquire the cover. In the event of an accident one is expected to pay up the full amount of the cover before compensation.
One of the challenges people face when an accident occurs, and you have a comprehensive insurance cover is paying excess. Depending on the value of your car, the amount one is supposed to pay as excess can be daunting. However, this can be mitigated by purchasing an excess protector. This covers you when an accident occurs, and you must pay excess, it basically sorts it for you. However, you must renew it every time an accident occurs. The excess protector is charged at 0.5% of the value of the car.
In Kenya, elections come with their own challenges which include political violence. Ordinarily, comprehensive insurance does not cover loss due to political violence. Terrorism is another challenge that we face nowadays that was not covered by the kawaida cover. However, nowadays one can protect themselves against losses due to the political violence and terrorism. This is by taking the PVT cover which is calculated at 0.5% of the value of the car.
Another fun fact about the APA Comprehensive Motor cover is that should you decide to sell your car before the insurance period lapses, you are entitled to a refund. This is if you have not utilized 60 per cent of the cover. This means that if you bought the cover in January 2018 and decided to you sell your car, say around June. You can get a refund for the unutilized period so don’t sell your car plus the insurance.
Also, unless there is need for an investigation into the cause of an accident, these guys compensate you in a record 7 days. This is pretty awesome if you ask me, so if you have not yet renewed your insurance cover, consider checking out the one offered at APA Insurance as they definitely care about your happiness.