In Kenya, third-party car insurance isn’t just an option—it’s the law. Every motorist must carry at least this basic form of insurance before taking to the road.
Yet despite its mandatory nature, many drivers have only a hazy understanding of what it covers, where it falls short, and what they should look out for before signing on the dotted line.
So, what exactly is third-party car insurance, and why should you take a moment to think carefully before buying it?
Third-party car insurance is the most basic and legally required form of motor vehicle insurance in Kenya. It is designed to protect you, the vehicle owner or driver, against liabilities to other people (the “third parties”) in the event of an accident.
In simple terms, this cover ensures that if you are involved in an accident and found to be at fault, your insurer will compensate the injured third party for:
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Bodily injury or death
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Property damage (in some versions of the policy)
However, third-party insurance does not cover:
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Damage to your car
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Theft or vandalism of your vehicle
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Medical expenses for you or your passengers
According to the Kenyan Traffic Act (Cap 403), no person shall use a motor vehicle on a road unless there is in force an insurance policy covering against third-party risks. If you drive without it, you risk hefty fines, a suspended license, or even imprisonment.
What Should You Know Before Purchasing?
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It’s the Bare Minimum—Not a Safety Net for Your Vehicle: Third-party insurance is intended to protect other people from the consequences of your driving, not to shield your vehicle from financial loss. If you want coverage for your car against theft, fire, or accidental damage, you’ll need to consider comprehensive insurance.
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Not All Third-Party Covers Are Equal: While the cover may seem standard, different insurers offer varying levels of service, claims efficiency, and optional add-ons. Some include minor extras like towing services, legal representation, or limited cover for third-party property damage. Always read the fine print.
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Know the Claims Limit: Each insurer places a cap on how much they’ll pay in the event of a third-party claim. You should ask: What is the maximum payout for bodily injury? Is there a cap on property damage? What about legal costs?
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Beware of Cheap for Cheap’s Sake: It’s tempting to buy the cheapest policy just to tick the legal box. But a rock-bottom premium might come with poor customer service, slow claims processing, or exclusions buried in fine print. A cheap policy becomes very expensive when your claim is denied.
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Claims Process—Know the Steps: In the unfortunate event of an accident, you’ll need to know what documents to provide (police abstract, copy of your insurance certificate, driver’s license, etc.) and the time frame within which to file a claim. A responsive and supportive insurer makes a big difference in a high-stress moment.
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Motorbike and PSV Coverage Differs: Third-party insurance terms vary for different types of vehicles. For instance, motorcycles (boda bodas), matatus, and taxis require specific covers. For PSVs, check whether the insurance covers passengers as third parties.
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Digital Insurers & Aggregators Are Now an Option: Several tech-driven insurers and aggregators in Kenya now offer third-party cover online, allowing you to compare prices, read user reviews, and purchase policies with a few taps. But always verify that the provider is licensed by the Insurance Regulatory Authority (IRA).
Think of third-party car insurance as a legal safety harness: it may not cushion you from all financial impact, but it ensures you don’t end up bankrupt from compensating someone else. Before you buy, take the time to research, compare, and understand the product, not just the price. And if you can afford to go beyond third-party, comprehensive insurance offers the peace of mind many drivers need in Kenya’s unpredictable driving environment.
Related Content: Role Of Insurance Brokers In Navigating Risk And Financial Protection
