Motor vehicle insurance is an essential aspect of responsible car ownership in Kenya. Beyond being a legal requirement, it offers crucial financial protection against accidents, theft and damage. At CIC Group, we believe in empowering our clients with the knowledge needed to make informed insurance decisions.
Understanding the key factors that influence premium costs can help policyholders choose the right coverage while managing expenses effectively.
- Vehicle Model
The model of the insured vehicle directly impacts the premium. Rare models attract higher premiums due to the scarcity of their spare parts.
- Vehicle Usage Classification
Whether a vehicle is used for personal commuting or commercial activities is a decisive factor. Commercial use, involving frequent travel or business operations, typically increases insurance costs due to higher exposure risk.
- Type of Cover
The level of cover selected plays a significant role in determining premiums. Comprehensive coverage, which includes extensive protections such as theft, fire and accidental damage comes at a higher cost than third-party coverage, which is a mandatory requirement by the Kenyan government.
- Optional Add-Ons
Additional benefits such as courtesy car and excess protector enhance protection but may increase the overall premium.
- Policy Term and Renewals
Longer policy durations may offer cost efficiencies compared to shorter terms, depending on the insurer’s pricing model.
While the above factors play a significant role in shaping motor vehicle insurance premiums, they are not the only ones. Other considerations such as the vehicle’s age and even prevailing regulatory guidelines can also influence the cost of cover. At CIC Group, we are committed to offering tailored advice and solutions that match your needs.
If you have any questions or would like guidance on selecting the most suitable cover for your vehicle, our team is always ready to assist you. Reach out to us today through any of the following channels: email callc@cic.co.ke , call 0703099120, WhatsApp 0703099000 or visit any of our branches, and let us help you make confident, informed insurance decisions.
