Insurance, especially if you do not need to make a claim, is a sunk cost. You can ask the car insurance company to pay you back your premiums if you do not make a claim. Therefore, is there a good reason to pay insurance for a car you are not using?
This question crosses the minds of people who may have more than one car hence do not use all the cars in their fleet. It is also critical for people who put their cars in long term storage for various reasons.
These reasons may include traveling, mechanical breakdown of the car, or confiscation of the car. As it turns out, there are actually several good reasons why you need to have car insurance kenya even if you dont drive your car.
All cars must be insured by law
First, the law requires all cars to be insured at all times. This means that keeping a car that is not insured may result in having a car illegally. The insurance regulations in Kenya demand that all cars be insured, because the law assumes that a functioning car will be in use. If for nothing else, insure your car for legal conformity.
The car is still at risk of Theft
The second reason why you need to keep your car insured is that your car may be at the risk of theft. Just because the car is parked in your premises or some other long term parking does not mean that it is completely free from the risk of theft. As such, maintaining an insurance policy for it is a good idea to ensure you are covered from the risk of theft.
The car is at risk of accidental or malicious damage
Thirdly, you need to assess whether your car would be at risk of malicious or accidental damage. When your car is parked for the long term, it could still get damaged. If you park the car in an open parking lot overlooking a balcony, items dropped from the balcony may damage the car’s windscreen, or may dent its roof or bonnet. The car may also be hit by other cars if the car is in a shared parking, and may also be damaged by objects nearby. These risks are real even for a car that is in long terms storage
Also Read – How Much Does Car Insurance Cost in Kenya?
The car is at risk of fire
While the car will likely not be in use for a period, it still contains many flammable fluids and car parts such as seats and interiors that can catch a fire. In this regard, your car is at risk of fire even if it is not on the road. You need an insurance policy to take care of you in case you lose to car to a fire.
Why keep the car? If you don’t need it, dispose it.
In conclusion, if you find that your car is not needed as much, instead of keeping it as it depreciates, maybe it is better to ask yourself whether you should sell it, or whether you should put it up for hire for the period you will not be using it.