Vehicle insurance seems like just another pesky cost in a world full of bills and expenses. However, it doesn’t hurt to be prepared. There are many pitfalls that come with owning vehicles among which include the risk of theft, fire and bodily harm. As such, it is important to take precautions by applying for car insurance.

There are three types of vehicle insurance in Kenya, namely; Comprehensive insurance, Third Party Fire and Theft Insurance and Third Party Only Insurance.

Comprehensive Insurance covers the car in case of theft, fire or accidental damages. It also covers bodily harm as well as property damage claimed by other people. Private vehicle owners pay about 8% the value of their car per annum for this service.

Third Party Fire and Theft covers the insured person against claims from other people. It also caters for theft and damages caused by fire.

Third Party Only Insurance exclusively covers claims made by other people.

Some insurance companies charge about KES 15,ooo as the minimum premium regardless of the actual cost of the vehicle. Others use the car's current price, model and depreciation to determine the insurance rate.

According to APA insurance, applicants should choose the option that best suits their financial requirements. Comprehensive Insurance is generally the most expensive but it caters for the most liabilities. The Kenya Insurance Review advises car owners to hire investment brokers to get actual quotations based on the cost of their cover. This enables the insured person to save time and money. In the long run hiring a broker is cheaper than paying exuberant amounts for a scratch on your bonnet.

The review also notes that vehicle owners can get insurance discounts if they take an additional driving test known as Pass Plus. This adds to the person's credibility and contributes to insurance discounts. Investing in a no claims bonus also helps the vehicle owner to save some money. This is a system where a car owner is rewarded for being a good driver based on a lack of claims since the last period of cover. It can run for up to 5 years with a discount on premiums as high as 75%, call it the carrot. If an accident occurs before the appointed date, then the car owner stands to lose some or all of the no claims bonus, call this the stick. The same applies to cases of theft.

An assessment by UAP Insurance states that all vehicle owners should report accidents to their insurer as soon as they happen. This helps the insurer to deal with liabilities that may come up in the future. Vehicle owners should also avoid customizing their cars. This only contributes to more liabilities in case the modifications are not a part of standard manufacturing protocols.

With these tools in hand, vehicle owners can rest easy, knowing that their insurer will cover most if not all of the costs that they have signed up for.