Kenya’s insurance landscape has immense potential that is yet to be fully realised. This is evident from the country’s economic growth against the insurance market penetration that stands at less than three per cent.
Let us consider the second largest insurance segment, motor insurance. With third party car insurance being mandatory in Kenya, one would expect that the segment would not suffer persistent under-performance.
The industry still records numerous vehicles having the minimum legally required motor private insurance, third party cover, mainly because of the perceived high cost of a comprehensive cover.
This may seem like bang for buck but motorists will often take the lowest-cost premiums without taking into consideration how they will replace or repair their vehicles if damage or loss occurs.
Competitive rates offer a compelling marketing strategy and create a thriving business environment that may be favourable in the short-term.
In the long-term, an increased risk environment will cause a ripple effect in the insurance industry that ultimately negatively affects the economy.
How then does a motorist ensure that they keep their car insurance quotes affordable without sacrificing on the value of their vehicle?
To select smart insuring but still keep your costs reasonable, here are some tips:
1. Keep your car’s security updated.
You have control over your car’s security and can improve it yourself. A car alarm will get you some reduction but if you install a tracker from a recognised company, you could get higher reductions on your policy quote.
2. Inform your insurer if you modify your car. If you change your car suspension, lights, wheel size, engine and anything that may affect its performance, you will be required by the insurer to declare it.
If you omit the mention of these and similar modifications, your insurance provider may then decline to cover them or impose stringent conditions if you have an accident or loss.
