7 Common Car Insurance Myths in Kenya – Finally BUSTED!

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Is it so that whatever you hear all the time always comes out as a fact? Well, we all know it’s not possible. Likewise, there are many misconceptions about car insurance that people believe and are not facts. So in this article, we have busted all those myths which are essential to be disclosed.

 car insurance myths busted

Myth 1: Getting a car insurance policy is very time consuming

Reality: Getting a car insurance policy online, has become super convenient and faster than getting it offline!. In the 21st century, most of the businesses are run online as well so all you need to do is just fill in few basic details about your car. You can thus easily get quotes for your car online, and if you want to compare quotes then there are a number of websites which provide a comparison between quotes from different insurance providers. Consequently, following a few steps, you can easily decide which company is best and which policy is right to buy.

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Myth 2: I am using an old car so I don’t need auto insurance.

Reality: This is the biggest misconception people generally have.  We hear that the older the car, the lesser is its declared value. So if your car gets older, the value of the car will get reduced which will result in cheaper car insurance. But this does not happen always. Your car insurance premium depends on a number of factors like your age, gender, driving record, claim history etc. Moreover, an older car is more vulnerable to theft, fire or such other incidents so definitely requires insurance.

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Myth 3. I can’t transfer my policy to another insurer because if I did so, I will lose my NCB points.

Reality:  First of all, I want to clear every insurance customer that No Claim Bonus is a kind of reward given by an insurance company to its customer for not filing any claim in a year. In case, you transfer your policy from one insurer to another, your NCB points will also transfer to that insurer and thus, you can enjoy benefits. To retain the NCB you will need to get the new policy within 90 days after your old policy has expired. Beyond that period, the NCB will not be valid and you will lose the benefit.

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Myth 4: Motor insurance only covers the accidents where I am not at fault.

Reality: Having a motor insurance policy means you will be covered for all types of car accidents, provided you have purchased a right policy. If you have purchased a comprehensive car insurance, you can get coverage for your vehicle for all types of damages to your car no matter who is at fault. However, it is a strict no if an accident occurs under the influence of alcohol or drugs. Moreover, your use of the vehicle should comply with what is mentioned in the policy document. For instance, if you are using your personal car for business purpose and meet with an accident, then you can’t make a claim for the damages.

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Myth 5. The third-party cover is enough if your car is old.

Reality: A third-party auto insurance policy only covers the damages to a third party in an event of an accidental damage and doesn’t pay for the damages to your car.  Moreover, Kenyans believe that this is the mandatory policy and affordable as well so one must buy it for an old car. It is hereby advised to take up a plan keeping in mind the condition of your car than its age.

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Myth 6: In case of total damage to my car, I will get a claim amount equivalent to the amount of a new car.

Reality:  Every insurance company has determined IDV mentioned in the policy. IDV refers to the maximum sum payable to the insured at the time of an insurance claim. Thus, the highest amount which you can claim in case of total loss to your vehicle or if the car gets stolen. Hence, in case, your car gets totally damaged, don’t  mistake to assume that you are going to get the claim amount which will be equal to the amount of your new year. Rather this amount is predetermined in your policy and is calculated as per the current market price taking depreciation into consideration.

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Myth 7: I can’t change the insurer once I buy one.

Reality: Another influential misconception to the insurance customers is that once they have purchased an insurance policy from an insurer, they can’t change the insurer. Insurance plans are mostly valid for one year except if you have opted for a multi-year plan. And, it is not a fact that you can’t change your insurer. At the time of renewing your insurance policy, you can easily change your insurer along with receiving the full benefit of NCB, you earned from the previous insurer.

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Staying unaware of the facts about car insurance Kenya can end up costing you a lot of money. So, it is advised to always read your policy document carefully and if any doubts get them busted before they bust you!

 

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