In our overview of types of motor insurance we highlighted the differences between insurance covers for your car. Here we dive deeper into the Third Party Only Insurance cover.
Third party only motor insurance covers you against the harm you might do onto another car or onto another person. It covers the liability for bodily injury or death of another person, or the damage to another car or property. A third party cover does not cover any damage done to yourself or your own car, like the Third Party Fire & Theft or the Comprehensive cover do.
What are the advantages of the Third Party car insurance cover, and who should choose it?
You want to have low costs
The most obvious benefit of the Third Party insurance are the low costs. This type of insurance is costing only a fraction of the premium you have to pay for comprehensive car insurance. For example, for a Ksh 1 million car comphrensive insurance starts at Ksh 35,000, while Third Party Only is a flat rate starting from Ksh 5,000. (See for accurate prices our comparison tool). So when you are on a small budget, Third Party insurance is the viable option for you.
Want To Compare Insurance?
Your car is not too valuable
When you have a car which is not too valuable, you want to consider the risk of fixing the car or replacing it at your own cost. You then don’t need a comprehensive cover. Car insurance companies do have a limit to the age of the car anyway for a comprehensive cover, which is often at 15 years.
You are an excellent driver
When you have a record of no or minimal accidents, you might want to consider this will be a good prediction for the future. The chance that you have huge damage in the future is low, so you might not want to pay too much money for the comprehensive cover. Thought take into mind that you are not protected against events which are not under your control, such as fire and theft, or someone else causing an accident upon you. If you want to be covered for that, we recommend a Comprehensive cover. Also, insurance companies tend to provide huge discounts for drivers who do not claim anything over the years, the so called no claim discount.
You are able to replace your car from savings
If you have sufficient savings, you can consider to ignore a comprehensive cover and just limit your insurance to Third Party only. In case something happens, you repair or replace your car out of own funds. This will save you approximately between 3.5% up to 7.5% of your car’s value each year.
What does Afrinsure advice?
If your car is worth more than Ksh 500,000, we recommend to take comprehensive insurance. Rates start at 3.5%. This means that without comprehensive insurance, you have to be free of any incident for 28 years. With the traffic situation in Kenya, and especially Nairobi, we don’t think that is realistic. The decision is up to you. Get some help with our comparison tool.