As a young driver, insurance companies consider you to be a risk. Your age, coupled with your driving experience are factors that insurance companies consider when calculating the premiums that you should pay. These factors certainly affect your car insurance rate . This is certainly true for NEXT Insurance.
This being the case, the question therefore arises,
“What is the best car insurance policy that young drivers should buy?”
Third Party Insurance
Third Party Car Insurance does not cover you as a car owner from liabilities arising to you as a result of an accident and other insured risks. However, it provides compensation for damages and losses that other people incur as a direct result of accidents caused by your car.
This policy is ideal of you are short of funds to buy more expensive insurance, but need to be on the road. If you drive your car within enclosed institutions where it is unlikely to be damaged or to be stolen, then a third party insurance policy makes sense for young drivers.
It ensures your car is roadworthy, but it also ensures you are covered from risks to external parties. You get to save some money on the premiums.
Need To Know – Car Insurance Cost In Kenya
Third Party, Fire, and Theft Insurance
The third party fire and theft policy is an upgrade to the basic third party policy, but it includes fire and theft to the list of covered risks. In this regard, the policy offers improved protection for young drivers.
This policy will ensure you are personally compensated if your car catches fire, or if it is stolen. As a young driver, this is an attractive option for you because it improves your protections, but at a smaller premium.
Comprehensive Car Insurance
When you buy comprehensive car insurance kenya, you will get a large number of benefits. As a young driver, this is attractive because it will ensure your car is protected from most of the risks that would affect you on the road.
The downside is that it’s the most expensive policy, hence you will be paying anything from three times the cost of a third party policy.
In the final analysis, your decision to buy car insurance in kenya would be influenced by the following.
First, you need to see how much money you have to spend on insurance. This is also correlated to your risk appetite. If you want to spend the least money, go for the third party policy. If money is not an issues and you are risk averse, then go for the comprehensive policy.
Secondly, you need to consider what it means to have one policy over another. If you drive an expensive car, it’s a poor financial decision not to insure your car comprehensively.
A more expensive car would mean a large loss in the event your car is stolen or is written off, and will also have more expensive parts which you may need to repair after an accident. In this case, go for a comprehensive insurance policy.
If both your risk tolerance and your financial capacity is somewhere in the middle, then go for a third party, fire and theft policy.