Car insurance rates never stay constant for a long time. They vary car by car, state by state and company to company. How often do you check for your car insurance quotes? It’s not obvious that while you compare quotes after a period of six months, they will always appear cheaper yet you may know that the premiums you are paying are satisfactory or not.
Car insurance is proposed to protect the vehicle owners or motorists from the financial loss of the events that occur due to road mishap or involving an accident in which you’re proved to be at fault.
In Kenya, buying a third party car insurance is mandatory but a fully comprehensive cover always protect you from all types of risks. No matter what car insurance type you prefer to purchase, you always have choices for the insurance companies. You can easily compare quotes online from top insurance providers in Kenya and buy the one that suits your vehicle needs.
Now the question is how to ensure you are getting cheaper car insurance premiums to pay?
The answer is “Shop around for every six months“. This doesn’t mean you visit every next insurance company. You can also compare quotes online. A number of companies provide free insurance quotes from top insurance companies in Kenya.
If technology has made the world so innovative then not enjoy its benefits sitting at home. If still, you don’t feel it worth consideration, here are 7 reasons why should you compare insurance quotes in every six months:
1. Insurance Companies change car insurance rates all the time:
On account of different risk factors, insurance companies in Kenya change their quotes at time intervals. This interval may vary from month to month and even year to year.
Let’s say if a person buys car insurance in Kenya in the month of July and September, you may get good deals on car insurance rates as this period is considered the best insurance buying period in Kenya.
To know well, when should one prefer to buy or renew auto insurance policy, check out our car insurance kenya stats infographic.
2. Amendments in Insurance Laws:
The insurance sector in Kenya is principally regulated by the Insurance Act of 2013 Cap 487 (Insurance Act) stipulated by the Insurance Regulatory Authority (IRA). Now the laws vary from state to state.
For example – If you live nearby flood-threatened area, you may need comprehensive cover whereas living in an urban city may need only third-party. It all depends on a number of factors.
To clearly under the factors affecting your car insurance, read this post.
So, it doesn’t matter what state you belong to, insurance obligations can change with the new laws which means you may have to buy more or less coverage in order to comply with the law.
3. Your Profile Record Decides The Car Cover You Need:
A profile factor determines how responsible or risky a driver can be to his insurer. On another side, if we talk about credit history, this is a critical factor that majorly determines the price of car insurance for a customer. Thinking how? Where a good credit score can lower your premiums, a bad credit history can increase car premiums for your auto insurance policy. Here are a few considerations taking while viewing your profile and credit history:
1. The driver’s marital status lowers car insurance rates. Further, if he or she has children, it further gives you a discount.
2. Any change to your living area.
3. Having advanced safety features to the car.
Higher premiums are a result of :
If the driver is involved in any motor vehicle accident.
If the driver receives any traffic citations
If the driver is convicted with a DUI
If you add another member as a driver to your policy
4. Vehicle Depreciation Impact:
You will not pay exactly the same car insurance cost every year because your car loses its value due to depreciation. Any vehicle will lose its value once it is driven off the dealer’s lot The car’s value won’t depreciate only once, but its value will keep on declining for its entire age.
However, the value of brand new cars drops by 40% within the first year of ownership. Therefore, reassessing your car insurance policy every 6 months will invigorate your coverage options, like third-party or comprehensive, that will match the decreasing value of your vehicle and discounts available.
5. Traffic Violations & Accidents Fall Off Your Record
A clean driving record is really necessary to avail car insurance discounts. But if your driving history is blemished with stains like traffic violations, DUI charges, and at-fault accidents, they will affect your car insurance premiums for a long time.
This, of course, sounds threatening so if you have any of these convictions, it’s not good.
The relaxation factor is that lawfully, an auto insurance company cannot legally factor in violations or accidents after a certain number of years of the mishap.
Such a violation will affect your auto insurance rate for an average time of 3 to 5 years.
6. The state of the Economy
The country’s economic growth against the insurance market is one of the reasons for the variance in car insurance premiums. This is because the insurance industry takes into account different economic factors while calculating premiums.
Here’s why – the state of the economy is constantly changing in Kenya. Motor Insurance is the largest Insurance segment in Kenya’s economy.
Now this depicts maximum vehicle in Kenya are covered with minimum liability insurance because of a higher cost of comprehensive cover. This seems like third party liability will always be taken into consideration no matter if the vehicle goes into the total loss.
Competitive rates offer a compelling marketing strategy and create a thriving business environment that may appear favorable in the short-term.
But in the long run, it will cause a ripple effect in the insurance industry.
How then does a motorist ensure that they keep their car insurance quotes affordable without sacrificing the value of their vehicle?
7. You’ve maintained coverage for the past 6 months:
Typically, the insurance companies offer higher premiums to the first-time motor insurance buyers. Initially, they consider the drivers risky as they don’t have any driving history. They also have no information on how good you are at making timely payments; so they prepare for the worst.
Likewise, for the drivers who have had a lapse in buying coverage over a long time, the insurance company follows the same procedure.
Once you have car insurance for 6 months or longer and you don’t process any claim. The company considers you as a safe driver and thus, you can unlock endless coverage and loyalty discounts.
Quick Tip: Remember to shop for car insurance quotes every 6 months
It’s smart to periodically check your insurance portfolios in order to reevaluate your monthly bills and expenses every now and then. Shopping around for car insurance quotes every 6 months allows you to keep track of discounts and coverage recommendations.
When you encounter any change in your policy, it becomes your responsibility to alert your insurer about it and gain discounts on your premium rates.