What Value for Money Really Looks Like When Buying Car Insurance

Here’s a no brainer – how many times have you been stopped by the traffic police? What’s the first thing they usually check? That insurance sticker, right?

And you always panic. Why? Because car insurance in Kenya isn't optional. The Traffic Act (Cap 405) makes it mandatory for every vehicle on public roads. But too often, Kenyans being Kenyans pay the cheapest premium, get the certificate, done.

It works, until (God forbid) you're standing next to your damaged car, calling the insurance company, and discovering your "comprehensive" policy doesn't actually cover what you thought it did. Or worse, you're stuck paying a massive excess before they'll even process your claim.

Real value in car insurance isn't about finding the lowest price. It's about getting coverage that actually protects your investment when things go wrong. 

Here’s what value for money really looks like when paying for car insurance:

Look Beyond the Premium

Walking into an insurance conversation focused solely on the annual premium is like buying a car based only on the paint colour. Sure, it matters. But it's not the full picture.

The cheapest policy almost always leaves massive gaps in your protection. These gaps only become obvious when you're filing a claim and learning exactly what "third-party only" means in practice.

The Three Main Coverage Types

Insurance in Kenya breaks down into three basic categories. Each offers different levels of protection at different price points.

1. Third-Party Only (TPO) is the absolute legal minimum. Annual cost typically runs Ksh 4,500 to Ksh 7,500 for a small private, used car. This covers damage you cause to other people or their property. Your own car? Not covered. At all. If you crash, the repairs come entirely from your pocket. TPO will mostly make sense for use with  very old, low-value vehicles.
2. Third-Party, Fire & Theft (TPFT) adds protection for your car against fire damage and theft while maintaining third-party liability coverage. This middle-ground option, on face value, works for mid-value cars but in practice you may find the premiums are close to what you would pay for a full comprehensive cover.
3. Comprehensive Cover is the real deal. Third-party liabilities plus full protection for your own vehicle. Annual premiums typically run 3-7% of the car's insured value.
   • For newer or higher-value used cars, comprehensive is essential. Repair costs are too high to self-fund.

Policy Limits Matter More Than You Think

1. Third-Party Property Damage (TPP) limits are critical. 

While coverage for injury or death is often unlimited, property damage has caps ranging from Ksh 3 million to Ksh 20 million.

• Hit a Prado in Westlands traffic? You could easily exceed Ksh 3 million in damages. If your policy caps at that amount and you're found liable, you're personally responsible for everything above it.
• The cost difference between Ksh 3 million and Ksh 20 million coverage is usually minimal. That small increase buys massive protection.

2. The Excess: Your Mandatory Payment

Here's where many buyers get blindsided. The excess (or deductible) is the amount you must pay out-of-pocket before insurance covers the rest.

In Kenya, standard excess is typically 2.5% or 5% of the insured value, with a minimum like Ksh 15,000 or Ksh 30,000.

On a Ksh 1.5 million claim:

• 5% excess = Ksh 75,000 you must pay immediately after an accident
• Before repairs can even start
• If you don't have that cash, your car sits in the garage

Some people opt for higher excess to reduce their premium. This only works if you have substantial emergency savings. For most used car owners, a lower excess delivers better real-world value.

3. Know Your Car, Know Your Risk

Not all cars are equal in the eyes of insurers. Your specific model directly impacts both your premium and your claim experience.

Vehicle Age Affects Everything

Most insurers restrict comprehensive coverage to cars 15 years old or younger. Some exclude cars over 12 years or valued below Ksh 300,000 entirely.

If your car falls outside these limits, you're automatically pushed to basic coverage, shifting more financial risk onto you. But there are insurers willing to insure even the oldest of cars subject to a mechanical evaluation at your cost. 

The Spare Parts Problem

The weakening shilling has made imported spare parts way more expensive. This is reshaping insurance in ways most buyers don't realize.

Insurers write off a vehicle when repair costs exceed roughly 50% of its value. With current spare parts prices, this happens much faster than before.

Here's what matters:

Models with complex or rare parts trigger write-offs more frequently:

• Many German cars (BMW, Mercedes, Volkswagen)
• Certain Honda and Mazda models
• Parts are scarce and prohibitively expensive

Popular Japanese makes like Toyota and Nissan? Insurers love them:

• Robust local supply chains
• Parts readily available at reasonable prices
• Lower repair costs mean fewer write-offs
• Translates to lower premiums and smoother claims

Choosing a car with easily accessible, affordable spares isn't just about maintenance. It directly impacts your insurance cost.

Extra Perks That Actually Matter

Basic comprehensive coverage provides the foundation. But the real value often lives in the add-ons.

1. The Excess Protector: Best Money You'll Spend

Remember that Ksh 30,000-75,000 excess you must pay before insurance kicks in? The Excess Protector eliminates it.

This add-on typically costs less than 0.3% of your car's insured value. For a Ksh 1.5 million car, that's under Ksh 4,500 annually to avoid a Ksh 75,000 out-of-pocket expense.

This is the highest-value add-on available:

• Removes the biggest financial barrier to a smooth claims process
• No scrambling for cash
• No delayed repairs
• No stress during a crisis

2. Loss of Use Coverage: Keeping You Mobile

Accidents don't just cost repair money. They cost mobility—matatus, boda bodas, taxis, or borrowing vehicles.

Loss of Use coverage provides an alternative vehicle or compensates for transportation expenses while your car is being repaired. Given how long repairs can take (weeks or months, thanks to spare parts delays), this is invaluable.

Most policies have a 3-day waiting period before this kicks in. After that, you're covered. For families and business owners who depend on their vehicle daily, this continuity is essential.

3. Roadside Assistance: 24/7 Peace of Mind

Most comprehensive policies either include or offer affordable roadside assistance. For others this will be an add on. Services typically include:

• Towing after accidents
• Flat tire changes
• Fuel delivery
• Battery jumpstarts
• All available 24/7

Given Kenya's road conditions and unpredictable mechanical issues, immediate emergency support dramatically enhances practical value.

4. No-Claims Bonus: Rewarding Safe Driving

Stay claim-free and insurers reward you with progressive discounts. For some insurance companies, you can start at 20% after one year, potentially reaching 50% after five claim-free years.

Here's the strategy most people miss:

• If you have a minor accident—say Ksh 15,000 in repairs—compare that cost against losing your no-claims bonus (if it exists with your cover) 
• If you're getting Ksh 50,000+ in annual premium discounts, paying the small repair yourself preserves massive long-term savings.
• Some insurers offer No-Claims Bonus Protection for a small fee. This lets you make limited claims without forfeiting your discount.

Avoid Hidden Costs and Common Pitfalls

Smart coverage requires reading beyond marketing materials. The details buried in terms and conditions often determine whether you get value or get screwed.

1. Don't Pay for Irrelevant Add-Ons

Some policies push extras that don't make sense anymore. Focus your spending on locally relevant extensions like Political Violence and Terrorism (PVT) cover—crucial in Kenya's environment and often required by lenders.

2. Valuation: Get This Right or Pay Later

Your car's insured value determines both your premium and your maximum payout. You typically choose between Market Value and Agreed Value.

The danger zone is under-insurance:

• Accepting an undervalued estimate to save on premiums backfires
• Currency devaluation means car prices have risen sharply. An under-insured payout won't buy a comparable replacement

Insist on accurate valuation. If the insurer's number seems low, get a second opinion from an independent valuer.

Claims Processing: Where Value Gets Tested

The IRA requires insurers to process claims within 90 days. Many still cause significant delays that erode trust.

Prioritize insurers with strong reputations for fast, fair claims:

• At least, most companies today invest in digital claims management
• Deliver higher service value
• A marginally cheaper premium from a slow company costs you more in stress

Read the Exclusions

"Comprehensive" doesn't mean "everything". Standard exclusions typically include:

• Wear and tear
• Mechanical breakdowns
• Damages from negligence or reckless behaviour
• Geographic limits (standard policies cover Kenya only)

Understanding these boundaries prevents ugly surprises during claims.

How Peach Cars Helps You Get Value

Smart insurance starts before you even contact an insurer. It starts with knowing exactly what you're insuring.

1. Verified Vehicles Mean Accurate Risk: Peach Cars' inspection and verification process ensures the car's true condition, mileage, and history are accurately presented.

2. Simplified Insurance Decisions: Insurance shopping is confusing. Multiple providers, varying terms, unclear coverage differences.

Peach Cars partnerships facilitates connections with trusted insurance partners familiar with the vehicles sold through the platform. This streamlined approach lets you easily obtain comprehensive coverage options already tailored for your verified vehicle.

Smart Insurance Equals Peace of Mind

Value for money in used car insurance goes beyond the cheapest annual rate. It demands strategic thinking centred on protecting both your car and your wallet.

What smart insurance looks like:

• Comprehensive coverage with essential add-ons
• Excess Protector to eliminate out-of-pocket shocks
• Loss of Use coverage for mobility continuity
• Vehicles with strong local spare parts supply
• Accurate valuations to avoid under-insurance
• Insurers with proven track records for prompt claims

The ultimate measure of value is the insurer's ability to deliver when you actually need them. This should always be prioritized over minimal premium savings.

By starting with a verified vehicle and accurate valuation through platforms like Peach Cars, you establish a strong foundation for smart insurance decisions.

Smart insurance protects your vehicle, your lifestyle, your financial stability, and your peace of mind.

Ready to make confident insurance decisions? Browse verified, accurately valued cars at Peach Cars and get the transparency you need for smart coverage choices.