An economic survey by the Kenya National Bureau of Statistics (KNBS) reports that the number of registered vehicles in the country increased 4.5% to 205,841 in 2011 from 196,456 in 2010. What’s more, the KRA registers about 7000 new cars every year. So with the ever-present risk of road accidents, calamities and outright theft, motor insurance is a cover that few can do without.

So far, we've covered car insurance piece by piece, tricks to keep your motor premiums down, what motor insurance doesn't cover and basic insurance versus pay as you drive. We've also explored academic, health, life and house insurance. This week, we take a look at some of the country’s motor cover service providers and their varied packages.

How does it Work?

With most forms of insurance, the system is basically the same. You can take one method of cover and simply rinse and repeat to make something new. Motor Insurance is no different. Aside from few cover packages like Gateway’s Pay as You Drive, service providers offer the same product.

The first thing a vehicle owner needs is a signed proposal form from the insurer. They also need a copy of their log book, a valuation report and their PIN number. Some companies like APA Insurance demand proof of a reliable anti-theft device on the vehicle.

The policy holder pays monthly or annual premiums for either a basic of comprehensive cover. In turn, the insurer provides cover services ranging from damaged windscreen replacement to monetary compensation if the vehicle is stolen. The service provider also pays for damages and repairs up to a specified amount.

How Much does it Cost?

The cost of insurance depends on the value and the condition of the car. An old vehicle with maintainance problems may not even qualify for insurance. However, relatively new models in good working condition can be insured depending on the current price of the vehicle.

Some service providers have fixed minimums. For example, UAP charges at least KES 20,000 in annual premiums. For an additional KES 29,000, the insurer offers a comprehensive Gold package which includes an Automobile Association (AA) cover.

Gateway Insurance uses a value calculator to determine how much premiums the insured party should pay. This system is based on the current value of the vehicle. A KES 1 million car would cost KES 65,000 a year to insure.

What are the Benefits?

Most insurers cover up to KES 30,000 in damages or theft of windscreens and vehicle entertainment systems. Gateway’s Pay as You Drive package covers up to KES 50,000 for accidents, theft and injuries. UAP pays 97.5% of the cost for stolen vehicles with tracking devices. It also gives an incremental 10% of the insured amount to policy holders who go for long periods of time without making claims.

Some packages like APA Insurance’s BimaBamba cater for accidents caused by acts of violence like riots and terrorism. The APA Comprehensive cover caters for damages caused by natural disasters like floods and earthquakes. The company pays for repairs up until the cover limit which is determined by the value of the car and the policy they choose.

Below is a list of some local insurers and their motor packages: