What to Know When Driving on a Third-Party Insurance Cover

Third-party insurance is the minimum legal insurance requirement for any vehicle that is on Kenyan roads. This insurance is meant to cover liability for damages to any third party in the event of an accident.

Therefore, if you get into an accident, your vehicle as well as the driver are not insured. Any costs and liabilities to the vehicle and the driver are to be shouldered by the vehicle owner. However, if there is harm to a third party, a pedestrian, a passenger, or a person in another vehicle, the third-party insurance will cover their costs, including medical fees. 

Additionally, if there is damage to third-party property, a vehicle, or any structure the car damaged, the third-party insurance will cover that too. 

How much does third-party insurance cost in Kenya?

Third-party insurance covers provide the same benefits all across. That notwithstanding, different companies price their covers differently. According to Judy Muthoni, the Lead Consultant at Intent Insurance Agency, the costs differ depending on the reputation of insurance companies in the market and their service delivery. 

Well-established and more reputable companies' third-party covers can go as high as Ksh15,000 per year, whereas you can find other covers as low as Ksh4,500 per year.

As opposed to comprehensive cover where insurers can accept payments in up to three instalments, most third-party covers require you to pay in a single instalment, at most two instalments. This is because there are different third party covers in the market, some for as short of a period as one week, to one month, three months, six months and one year.

Read More: Are You Paying Too Much for Car Insurance?

Benefits of Third-Party Insurance

Despite third-party insurance being the minimum legally required insurance cover for motor vehicles in Kenya, it has several benefits that are worth noting.

• Peace of mind: This insurance cover allows you peace of mind, especially when involved in an accident, knowing that your insurance will take care of resulting damages that are not yours. You might still have to worry about your own vehicle's damages or injuries incurred, but not having to worry about the third party offers significant relief.
• Affordable coverage: Third-party insurance is affordable compared to comprehensive insurance. Different companies package their third-party insurance offers differently but nonetheless, they all help you meet the legal requirements for vehicle insurance while protecting any third party in -ase of an accident.

This insurance cover is accessible to many people who own any type of motor vehicle, and it is also becoming more common because of the tough economic times.

Types of Third-Party Insurance

There are two types of third-party insurance that you can get. They vary in what each package covers. 

• Third Party Only: A third-party insurance policy only covers liabilities incurred by the third party. 
• Third Party Fire and Theft: While third party insurance protects the third party in case of an accident, there are other calamities that are wise to insure your car against, such as fire, theft, floods, and so on. Third-party fire and theft extends the cover to such unfortunate eventualities that might arise. This insurance cover can be more costly than that of a third party alone.

Depending on the insurer, they can curate a third-party insurance package that suits your needs.

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Differences Between Third Party Insurance and Comprehensive Insurance

The processing of third party covers is less exhaustive as opposed to when processing for a comprehensive cover. This is because with a third party cover, the insurance does not cater for the damages to your car, instead the evaluation of the damage is made after the accident and only the damages to other passengers, other vehicles or other property is paid. 

On the other hand, a comprehensive policy covers both your damages and any other damages to a third party, hence, your vehicle has to be valued before you buy a comprehensive insurance cover. 

Unlike comprehensive insurance where there may be restrictions on the cars that qualify for coverage, there are no restrictions for a car to receive third party insurance. 

Here are other differences between third party insurance and comprehensive insurance.

Types of Vehicles Covered Under Third Party Insurance

Legally, no motor vehicle should be on the road without insurance, according to Kenyan law. Third-party insurance is the minimum insurance cover you can have for any motor vehicle. It basically covers any type of vehicle, including  private vehicles, commercial vehicles, special-purpose vehicles, motorcycles and PSVs.

What Third Party Doesn’t Cover

A third-party insurance policy is limited in what it is able to cover. Here are some of the things that it does not cover.

• The property of the person who has the insurance.
• Anything that happens outside the area covered by the policy.
• When someone other than the car owner drives the car.
• Losses, damage, and problems caused by war, strikes, or similar events.
• Damage that happened when the driver was using drugs or alcohol.
• Damage to the windshield.

Read Also: Why You Should Have Insurance As a Young Adult

Key TakeAway

Judy summarizes third-party insurance best, “3rd party insurance covers the legal liability of the insured driver for bodily injury or property damage caused to third parties in an accident. This means that if you are involved in an accident and you are found to be at fault, your insurance company will pay for the medical expenses and property damage of the other driver.” She continues to emphasize, “people should be keen to check what is stated in the terms and conditions section of their policy.”