I Just Bought a Car in Kenya. What Insurance Do I Actually Need?

I'll never forget the afternoon I picked up my first car.

A 2014 Mazda Demio. Silver. Clean body. Slight dent on the rear bumper that the dealer swore "adds character." I was buzzing.

Drove it straight from the yard in Industrial Area to my place in South B. Windows down. Music up. Feeling like the main character in my own movie.

Then my phone rang.

"Bro, did you sort the insurance?"

I had not sorted the insurance.

Turns out, in Kenya, driving without insurance isn't just risky — it's illegal. And I was about 45 minutes into breaking the law without even knowing it.

Here's everything I wish someone had told me that day.

Table of Contents

• The Law: Third Party Insurance Is Mandatory
  • What Third Party covers:
  • What Third Party does NOT cover:
• Third Party, Fire and Theft (TPFT): The Middle Ground
• Comprehensive Insurance: The Full Package
  • What it costs:
• The Excess: That Annoying Number You Need to Understand
  • Types of excess:
  • Young driver excess:
• No-Claim Discount: The Reward for Not Crashing
• Which Type Do You Actually Need?
  • Get Third Party only if:
  • Get Third Party, Fire and Theft if:
  • Get Comprehensive if:
• Five Things I Wish I'd Known Before Buying Car Insurance
  • 1. Read the exclusions, not just the benefits
  • 2. Take photos of your car before the policy starts
  • 3. Not all insurers treat you the same at claims time
  • 4. Your driving record matters
  • 5. You can negotiate
• What Happens If You're Caught Without Insurance?
• Final Word

The Law: Third Party Insurance Is Mandatory

Let's start with the non-negotiable.

Under the Insurance (Motor Vehicles Third Party Risks) Act, Cap 405, every motor vehicle on a Kenyan road must have at least Third Party (TP) insurance.

This is not optional. No exceptions. No grace periods. You cannot legally drive without it.

What Third Party covers:

• ✔️ Injury or death you cause to other people
• ✔️ Damage you cause to other people's property

What Third Party does NOT cover:

• ❌ Damage to your own car
• ❌ Theft of your own car
• ❌ Your own medical bills from an accident

That's the baseline. It protects others from you, not you from anything.

Third Party, Fire and Theft (TPFT): The Middle Ground

One step up from basic TP is Third Party, Fire and Theft.

It includes everything in TP plus:

• ✔️ Cover if your car is stolen
• ✔️ Cover if your car is damaged by fire

For a car worth KSh 800,000–1,500,000, this costs roughly KSh 15,000–25,000 per year. Not a bad deal if you're parking in a public lot or in an area with security concerns.

It still doesn't cover accident damage to your own vehicle though.

Comprehensive Insurance: The Full Package

Comprehensive motor insurance is the gold standard. It covers:

• ✔️ Everything in Third Party
• ✔️ Theft
• ✔️ Fire
• ✔️ Accidental damage to your own car
• ✔️ Windscreen replacement (usually)
• ✔️ Towing and emergency services (varies by insurer)

What it costs:

Comprehensive insurance is typically 4%–6% of your car's value per year.

Yes, it's pricier. But if you're financing the car or it's a significant portion of your net worth, comprehensive is the smart play.

Think of it this way: would you rather pay KSh 5,000/month in premiums, or KSh 500,000 out of pocket when someone T-bones you at a junction?

The Excess: That Annoying Number You Need to Understand

This one tripped me up.

The excess (also called a "deductible") is the amount you pay first before the insurance kicks in on a claim.

Example: Your car gets hit. Repair bill is KSh 80,000. Your excess is KSh 15,000. The insurer pays KSh 65,000. You pay KSh 15,000 from your pocket.

Types of excess:

• Compulsory excess: Set by the insurer. You can't avoid it.
• Voluntary excess: Extra excess you choose to add. Higher voluntary excess = lower premium. It's a trade-off.

Young driver excess:

If you're under 25 or got your license recently, expect a higher excess. Insurers see you as a higher risk. Fair? Maybe not. But that's the game.

For a full breakdown of terms like excess, premium, and underwriting, check the Insurance Terminology Guide.

No-Claim Discount: The Reward for Not Crashing

Here's the sweetener.

Every year you don't make a claim, you earn a No-Claim Discount (NCD). This reduces your premium the following year.

Typical NCD progression in Kenya:

That KSh 60,000 annual premium? After four clean years, you could be paying KSh 30,000–36,000.

👉 Pro tip: When switching insurers, ask about NCD transfer. Most companies will honour your no-claim history from a previous insurer. Just bring the proof.

Which Type Do You Actually Need?

Here's my honest breakdown:

Get Third Party only if:

• Your car is old (worth under KSh 300,000)
• You can afford to replace it out of pocket
• You're on an extremely tight budget

Get Third Party, Fire and Theft if:

• Your car is worth KSh 500,000–1,200,000
• You park in public or unsecured areas
• You want theft and fire cover without the full comprehensive cost

Get Comprehensive if:

• Your car is worth over KSh 1,000,000
• You're still paying off a car loan (the bank will require it anyway)
• You drive frequently in heavy traffic (hello, Mombasa Road)
• You can't afford a major repair bill out of pocket

Five Things I Wish I'd Known Before Buying Car Insurance

1. Read the exclusions, not just the benefits

Every policy has things it doesn't cover. Driving under the influence? Excluded. Unlicensed driver at the wheel? Excluded. Unroadworthy vehicle? Excluded. Know the gaps.

2. Take photos of your car before the policy starts

Seriously. Walk around your car and photograph every angle. If you ever need to make a claim, having "before" photos saves a lot of back-and-forth with the assessor.

3. Not all insurers treat you the same at claims time

The cheapest premium doesn't always mean the best experience. Ask friends. Read reviews. The real test of an insurer is how they behave when you actually need them.

4. Your driving record matters

Accidents and claims stay on your record. Multiple claims in a year will raise your premiums and kill your no-claim discount.

5. You can negotiate

Yes, really. Especially if you have a clean driving record or you're insuring multiple vehicles, you have leverage. Ask for a better rate. The worst they can say is no.

What Happens If You're Caught Without Insurance?

Let's be clear about the consequences:

• Fine: Up to KSh 100,000 or more
• Imprisonment: Possible, especially for repeat offenders
• Vehicle impounded: Police can seize your car on the spot
• Personal liability: If you cause an accident without insurance, you pay everything out of pocket. Injury claims can run into millions.

That KSh 7,000 Third Party policy is looking pretty reasonable now, right?

Final Word

Buying a car in Kenya is exciting. The freedom. The convenience. The fact that you no longer have to negotiate with matatu touts at 6 AM.

But a car without the right insurance is a liability waiting to happen.

Get at least Third Party — it's the law. Seriously consider comprehensive if the car is valuable. Understand your excess. Build that no-claim discount. And always, always read the fine print before you sign.

Your future self — the one standing at a junction after an accident, heart pounding, wondering what happens next — will thank you.

🟢 Want to understand your motor insurance options in detail? Head to our Motor Vehicle Insurance guide or brush up on key terms in our Insurance Terminology Guide.