Motor insurance is purchased for cars, trucks, motorcycles and motor cycles and commercial road vehicles. Motor Insurance policy is basically a mutual agreement between an insurance company and the Insured. The policyholder pays periodic payments called premium to the insurance company. In return, the company agrees to provide financial cover to the insured in the event of loss occurring from an accident or natural calamity.
3 categories of Motor Insurance in Kenya
1. Third Party: This insurance policy covers third party bodily injury and property damage occurring from a vehicle accident.
2. Third Party Fire & Theft: In addition to covering third party bodily injury and property damage occurring from a vehicle accident, this policy extends to cover fire and theft.
3. Comprehensive: This insurance policy covers third party liability and property damage to the vehicle such as damage arising out of fire, theft, and accidental damage to the vehicle.