The main difference between third-party and comprehensive car insurance is the kind of coverage it offers. While Third-Party insurance only covers you against third-party damages and losses, comprehensive car insurance will cover your damages as well.  

Choosing the right kind of insurance for your vehicle in Kenya is crucial. After all, having at least basic insurance that covers third parties is part of the law. Not having one can lead to traffic violations fines and can even lead to the disqualification of your driving licence! 

To protect you from both hefty fines and damages and losses that could arise due to mishaps both big and small such as accidents, collisions, floods, theft, etc, it’s important to understand the difference between comprehensive car insurance and third-party car insurance and accordingly decides on what will suit you and your car better

What is Comprehensive Car Insurance?

Comprehensive car insurance is one of the most preferred types of car insurance policies, as it covers not only third-party liabilities and losses but also covers damages caused to you and your car.  

Benefits of Buying a Comprehensive Car Insurance

Covers for Your Car’s Damages

The primary benefit of getting comprehensive car insurance is, it protects your car from any unfortunate damages and losses due to accidents, collisions, fires, etc.

This way, you don’t only save on unforeseen expenses but also ensure your car will stay in good shape, even in the case of a mishap. 

Protects your Pocket from Third-Party Liabilities

One of the main reasons people get any type of car insurance is to comply with the law and protect themselves from losses in case of any third-party damages.

What’s great about comprehensive car insurance is that while protecting you and your car, it also protects you from losses in case you damage a third-party person or property.  

You can Customize your Insurance Declared Value 

At Digit, we believe you know your car the best. That’s why, while buying comprehensive car insurance online, we give you the option to customize your IDV, i.e the market value of your car. This will directly then affect your premium and claim amounts. 

Opt for Add-Ons for Better Coverage 

Most people prefer comprehensive car insurance because you can customize your policy just the way you want, by picking add-ons to extend the kind of coverage your car can receive.

Some of these add-ons include the return to invoice cover, engine and gearbox protection and, consumables cover amongst others.  

Cost Effective 

Although the premium of comprehensive car insurance is higher than that of third-party car insurance, it still turns out to be a lot more cost-effective since the coverage and benefits you receive with comprehensive car insurance are a lot higher, saving you a lot of money in the long run!  

Protects your Car During Natural Disasters 

Nobody can control nature’s many furies. But, with comprehensive car insurance, you can at least protect your car from any damages that are caused due to the same.

So, whether your car is damaged due to a flood, cyclone or earthquake- your car will be protected through it all.  

Compensates you in case of Car Theft 

Car thefts are the worst! Within minutes you can lose out on one of your most prized possessions.

Thankfully though, comprehensive car insurance can help you in this case by compensating for the loss of the same.  

You Can opt for Breakdown Assistance 

A Breakdown Assistance is one of the many add-ons available in comprehensive car insurance. But, what makes this add-on special is that it never counts as a claim.

So, whether you’re stuck midway or are having a little breakdown, we’ll just be a ring away and it won’t even count as a claim!  

Avoid Depreciation with Zero Dep Cover 

Everything loses value over time. But, if you’ve opted for a zero-depreciation cover in your comprehensive car insurance, you can keep your car as good as new.

This means you can avoid the depreciation on its parts and therefore get more money during claims due to the same! Sounds great, doesn’t it?  

However, there are certain limitations too, such as:

• A comprehensive car insurance does not cover damages caused due to normal ageing and wear and tear of your car. 
• It cannot protect your four-wheeler from the depreciation of the value of the car over time.
• Damage to vehicle parts which are made up of fibre or rubber is not fully covered within the insurance.
• The policy does not cover damages and losses caused due to a nuclear attack or war.

Exclusions in a Comprehensive Car Insurance

Driving Drunk 

Any claims made in a situation where you were driving under the influence of alcohol won’t be covered even in comprehensive car insurance. 

Driving without a License 

As per the law, your claims won’t be covered if you were driving without a valid driver’s license.  

Driving without a valid License Holder 

As per the law, we can’t cover for you if you were driving with a learner’s license, without a valid license holder in the front passenger seat. 

Consequential Damages 

Consequential damages are those that take place after the accident. Unless covered in an add-on, such damages can’t be covered even in your comprehensive car insurance. 

Contributory Negligence 

To simply put it, don’t do things you aren’t supposed to!  For example; if there are floods in your city, don’t take the risk and take your car out. Listen to your manufacturer’s manual because such negligence can’t be covered in your comprehensive car insurance too.  

Add-ons Not Bought 

This is pretty obvious, isn’t it?  In case you haven’t bought a particular add-on while buying your comprehensive car insurance, you can’t claim its benefits!

What is Third Party Car Insurance?

If you’re not going for a comprehensive car insurance policy, third-party car insurance is the most basic, and legal form of car insurance policy you will need. As the name suggests, this will only protect you from damages and losses caused to a third party and won’t cover your damages.

Benefits of Buying a Third-Party Car Insurance

Covers for Third-Party Liabilities 

The main purpose of Third-Party car insurance is to cover you from losses and damages caused to a third party due to your car. So, this includes situations such as if you bump into a car or damage one’s personal property. In such cases, your third-party car insurance will cover the losses incurred. 

Helps you Drive Legally on Kenyan Roads 

As per the Motor Vehicles Act, every car needs to at least have third-party car insurance to drive legally on our roads.  

Protects your Pocket from Traffic Fines 

Since at least having third-party car insurance is mandatory by law, not having one can lead you to pay hefty penalty fines. Therefore, having third-party car insurance can protect your pocket from spending on traffic fines!  

Exclusions in a Third-Party Car Insurance

Own Damages 

As the name suggests, third-party car insurance will only cover third-party-related liabilities and damages to one’s car won’t be covered under this policy. 

Drunk Driving or Without a Driver’s License 

Third-party car insurance won’t cover your third-party claims if you were found driving under the influence of alcohol, or without a valid driver’s license. 

Driving without a valid Driving License holder

If you hold a learner’s license and were driving without a valid driving license-holder in the front passenger seat – then your claim in those situations won’t be covered.  

Reasons to Upgrade to a Comprehensive Car Insurance

To Cover for Your Damages 

Get covered for your own car’s damages and losses that could arise due to unforeseen circumstances such as accidents, collisions, monsoon floods, fire, et al. 

To Cover Third-Party Liabilities too 

Also get covered for all third-party related liabilities such as if you hit and damage someone’s vehicle, injure a third-party person or damage someone’s property.  

To Customize your Policy for Better Coverage 

Customize your car insurance further by opting for different add-ons and covers that would give your car better coverage. For example: Opting for breakdown assistance/roadside assistance in your policy gives you the benefit of asking for our help for matters both big and small. Similarly, opting for a zero-depreciation cover ensures we don’t deduct your car’s chargeable depreciation during claims.

You can Customize your Insurance Declared Value 

Under our comprehensive car insurance policy, you also have the option to customize your car’s IDV. 

Personal Accident Cover Included 

With a comprehensive car insurance policy, you don’t need to separately opt for a personal accident cover as a comprehensive policy automatically covers it all. 

What are the factors to consider before buying car insurance?

• You should check for your car’s maximum sum insured fixed by the insurer which is provided on theft or total loss of the insured vehicle
• You should gauge your car’s age and decide on the right add-ons for your car
• Depending on the usage of your car you should decide on taking a third party or comprehensive insurance. If you are not planning to use your car too much, then third-party car insurance could work, or else it is recommended that you go for comprehensive car insurance.

So, don’t forget to add an extra layer of protection to your car with a car insurance policy! Contact Us Today At Shimin Insurance Agency to get the best deals for your car insurance with our trusted partners.