Motor Insurance in Kenya (2026): The Complete Step-by-Step Guide

Motor insurance is one of the most essential covers in Kenya. It protects you from major financial loss when your vehicle is involved in an accident, theft, fire, or third-party claim.

But many people buy motor insurance without fully understanding:

• what it covers
• what it doesn’t cover
• how claims work
• why excess matters
• how insurers calculate payouts

This guide explains everything clearly, step-by-step.

1) What Is Motor Insurance?

Motor insurance is an agreement between you and the insurer where:

• ✅ you pay a premium
• ✅ the insurer compensates you for covered losses and liabilities

Depending on your motor policy type, you may be covered for:

• third party injuries and property damage
• damage to your own car
• theft or attempted theft
• fire, explosion, lightning
• emergency medical expenses (in some policies)
• towing/recovery costs (up to a limit)

2) Types of Motor Insurance in Kenya

In Kenya, motor insurance typically comes in 3 main options. Understanding the differences between comprehensive and third party covers is crucial for making an informed decision:

A) Comprehensive Motor Insurance (Full Cover)

This is the most complete motor insurance option.

It covers:

• ✅ your vehicle (own damage)
• ✅ third party liability
• ✅ theft and attempted theft
• ✅ fire, lightning, explosion
• ✅ additional benefits depending on your policy

Best for:

• newer vehicles
• vehicles with high value
• drivers who want maximum protection
• financed cars (bank/logbook loans often require comprehensive)

B) Third Party Fire & Theft (Mid-Level Cover)

This is a balance between affordability and protection.

It covers:

• ✅ third party injury/death
• ✅ third party property damage
• ✅ your vehicle ONLY for fire and theft-related losses

It does NOT cover your own accident damage if you collide with another car or object.

Best for:

• mid-value vehicles
• people who want protection from theft/fire but not full comprehensive

C) Third Party Only (Basic Legal Cover)

This is the minimum cover required to drive legally on Kenyan roads. For a detailed understanding of how third party insurance works in real-life scenarios, check out our comprehensive guide.

It covers:

• ✅ injury or death to third parties
• ✅ third party property damage

It does NOT cover:

• ❌ your car damage
• ❌ fire
• ❌ theft

Best for:

• older cars
• tight budgets
• drivers who only need legal compliance

3) What Comprehensive Motor Insurance Covers (Explained Simply)

Comprehensive cover includes multiple key areas. To better understand the difference between third party and comprehensive insurance, let’s explore what comprehensive covers in detail:

A) Own Damage Cover (Damage to Your Vehicle)

This is what most people call “my car cover.”

It covers loss or damage to:

• your car body
• mirrors, lights, bumpers
• accessories fitted to the vehicle
• spare parts while in/on the vehicle

B) Market Value (How Your Car Payout Is Calculated)

If your car is written off, the payout is based on your car’s pre-accident market value, not sentimental value.

C) Recovery and Towing (After an Accident)

If your vehicle cannot be driven after an accident, your cover may help pay for:

• towing/recovery
• moving the vehicle to the nearest repairer
• moving the vehicle to a safe place

⚠️ Note: This benefit usually has a limit, so it’s not “unlimited towing.”

D) Small Repairs (Authorized Repair Limit)

Some motor covers allow minor repairs without long approvals—up to a specific limit.

This helps in cases like:

• minor bumper repairs
• small panel work
• small parts replacement

✅ You still must send repair costs quickly to the insurer to avoid claim issues.

4) What Motor Insurance Covers for Third Parties

Even if you don’t have comprehensive, third party cover is essential because it protects you from expensive legal liability.

Third party cover can pay for:

✅ Third Party Bodily Injury/Death

Example: you hit a pedestrian or boda boda rider.

✅ Third Party Property Damage

Example: you hit another car, a gate, a wall, or shop property.

5) Emergency Medical Expenses (If Included)

Some motor covers provide a small medical expense benefit for injuries resulting from the accident.

This can cover reasonable emergency medical costs for:

• the insured
• the authorized driver
• passengers (depending on policy wording)

✅ It helps especially for minor emergency treatment after accidents.

6) Car in Garage / Service Provider Custody

If your vehicle is at a garage for repairs or servicing, some policies still protect you under certain conditions.

This is helpful because accidents and loss can happen even when the car is not with you physically.

7) What Motor Insurance Does NOT Cover (Common Exclusions)

Even with comprehensive cover, insurers may not pay for certain events.

Common exclusions include:

• ❌ Wear and tear – Example: old tyres wearing out.
• ❌ Mechanical or electrical breakdown – Example: engine failure without accident impact.
• ❌ Consequential loss – Example: loss of business income because your car is off the road.
• ❌ Damage to contents inside the vehicle – Example: laptop, phone, cash, or goods stolen from the car (unless separately insured).
• ❌ Overloading or strain – Example: carrying cargo above capacity.
• ❌ Driving under alcohol/drugs – Insurance may reject claims if the driver was intoxicated.
• ❌ Using the car for prohibited purposes – Example: hire and reward (Uber/Taxi) if not insured for it, racing, commercial delivery if not covered under limitations.

8) Excess (Deductible): What You Pay During a Claim

An excess is the amount you contribute when a claim occurs.

Common excess types in motor insurance:

Why Excess Matters

You can have a valid claim, but still pay part of the cost because excess applies.

9) Underinsurance (Average Clause) — Very Important

If your vehicle market value is higher than what you insured it for, insurers can apply the average clause.

Meaning: ✅ they reduce your payout proportionately because you underinsured the car.

10) Theft Cover (And Why Anti-Theft Devices Matter)

If theft is included in your cover (comprehensive or TPF&T), insurers may require security conditions.

Some policies apply different theft excess depending on:

• anti-theft device installed
• tracking device installed
• no theft device

11) “No Blame No Excess” (How It Works)

Some insurers offer a no blame no excess clause for own damage claims, but it has rules.

It may apply only if:

• ✅ police abstract clearly shows you are not to blame
• ✅ the at-fault vehicle is insured and identifiable
• ✅ the accident involves 2+ insured vehicles
• ❌ it doesn’t apply to theft
• ❌ often doesn’t apply to accidents involving animals/pedestrians/cyclists

✅ Always confirm your insurer’s conditions.

12) Optional Add-Ons You Can Include on Your Motor Insurance

Depending on the insurer, you may add benefits such as:

These upgrades are useful because they reduce out-of-pocket costs.

13) What To Do Immediately After an Accident (Step-by-Step)

Here’s the best way to protect yourself and your claim:

14) Motor Insurance Claims Process in Kenya (Simple Breakdown)

Most claims go through these stages:

✅ 1. Claim Notification

You inform your agent/insurer and receive guidance.

✅ 2. Document Submission

Typical documents include:

• claim form
• police abstract (if required)
• driver’s license + ID copy
• photos
• repair quotation / assessment

✅ 3. Vehicle Assessment

This may happen through:

• an assessment centre or
• a panel garage inspection

✅ 4. Approval of Repairs

Insurer reviews repair quote and approves or negotiates.

✅ 5. Repairs Begin

Car is repaired at an approved garage.

✅ 6. Re-assessment After Repairs

Most insurers require a final re-check before closing the claim.

✅ 7. Claim Closure

Payment is made either to:

• the garage
• the third party
• the insured (depending on the claim type)

15) Quick Motor Insurance FAQ (Kenya)

1) Can I transfer my motor policy to someone else in Kenya?

No. Motor insurance is a personal contract and is not transferable. You normally cancel the policy after sale and the new owner takes their own cover.

2) What if I have another insurance cover elsewhere?

Some policies apply contribution rules, meaning insurers share the loss if you have multiple covers for the same risk.

3) What happens if someone lies in a claim?

Fraud is taken seriously. It can lead to:

• claim decline
• loss of benefits
• legal action

4) What if I’m not happy with the insurer’s decision?

You can escalate disputes through:

• the insurer’s complaints process
• arbitration/mediation channels
• Insurance Regulatory Authority (IRA)

Final Tip: How to Choose the Best Motor Insurance in Kenya

Before choosing a policy, confirm:

• ✅ Cover type (Third Party / TPF&T / Comprehensive)
• ✅ Third party limits (injury + property damage)
• ✅ Your excess amounts
• ✅ Towing/recovery limits
• ✅ Approved garage panel system
• ✅ Optional add-ons (windscreen, radio, PVT)
• ✅ Claim reporting timelines

The goal is simple: pay the right premium for the right protection.