There are three types of insurance policies that can be issued motor owners:

a. Third Party
This type of policy covers third party bodily injury and property damage arising out of use of motor vehicle. This is the most widely known and used policy in Kenya. It is the cheapest policy.

b. Third party Fire & Theft cover

In addition to the cover in (a) above, the policy extends to cover theft and fire. It is more expensive than Third party.

c. Comprehensive cover
This is what you may call a full policy. It covers third party liability and property damage, damage arising out of fire, theft and accidental damage to the vehicle. If you have bought your motorcar through a loan, the lender will usually require comprehensive insurance. It is the most expensive policy. Comprehensive doesn’t mean that it covers all risks. There are exclusions. Therefore, one needs to study the policy carefully to ensure that it meets their requirements.

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