10 Mistakes to Avoid When Buying Motor Insurance in Kenya (2026 Guide)
29Jun

10 Mistakes to Avoid When Buying Motor Insurance in Kenya (2026 Guide)

Buying motor insurance in Kenya? Avoid these 10 costly mistakes before choosing comprehensive or third-party cover. Learn how to verify certificates, avoid fraud, and compare quotes with Imana Insurance.

Motor Insurance Kenya, Car Insurance Kenya, Comprehensive Insurance Kenya, Third Party Insurance Kenya

Motor insurance in Kenya is more than just a legal requirement. It is one of the most important financial safety nets for vehicle owners.

Yet many Kenyans buy motor insurance the wrong way.

Some choose the cheapest premium without checking benefits. Others pay fake agents, fail to verify certificates, or discover too late that they bought the wrong scope of cover.

The painful reality? Most people only understand the importance of proper motor insurance when a claim happens.

At Imana Insurance Agency Kenya Ltd, we help vehicle owners compare quotes from trusted insurers so they can choose cover based on price, benefits, claims reputation, and service quality—not guesswork.

You can learn more about motor insurance here:
Motor Insurance Guide

Here are 10 major mistakes to avoid when buying motor insurance in Kenya.

Why Many Kenyans Buy the Wrong Motor Insurance

A lot of car owners treat insurance like a yearly routine:

  • Renew sticker
  • Put it on windscreen
  • Move on

But insurance is not just a sticker.

It is a contract defining:

  • What is covered
  • What is excluded
  • How claims are handled
  • How much the insurer pays
  • How much you contribute during claims

If you don’t understand this contract, you may be exposed financially.

Mistake 1: Failure to Window Shop

One of the biggest mistakes is buying from the first person who offers a quote.

Compare:

  • Premium rates
  • Claim settlement reputation
  • Customer reviews
  • Benefits offered
  • Add-ons included

Referrals from trusted friends often help, especially from people who have gone through successful claims.

A company that pays claims on time is worth considering.

Be cautious of extremely low premiums.

Cheap rates can sometimes signal:

  • Weak underwriting
  • Poor claim settlement capacity
  • Hidden exclusions
  • Poor service

Important Advice

Avoid taking insurance through close relatives or family members.

Why?

Insurance claims can strain relationships quickly.

If a claim delays or gets disputed, emotions enter the conversation.

It is often safer to deal with professional independent intermediaries.

Mistake 2: Failure to Fill Out a Proposal Form

Many people skip proposal forms because they look old-fashioned.

That is risky.

A proposal form captures:

  • Personal details
  • Vehicle details
  • Vehicle usage
  • Previous claims history
  • Risk profile
  • Intended scope of cover

This documentation becomes extremely important during claims.

If a dispute arises later, the proposal form helps prove:

  • What information you disclosed
  • What cover you requested
  • What risks the insurer accepted

Always:

  • Fill the form carefully
  • Verify every detail
  • Sign it
  • Keep a copy

Your copy can save you during disputes.

Mistake 3: Making Direct Payments to Unverified Intermediaries

This is where many Kenyans lose money.

Understand the difference.

Insurance Brokers

Brokers can legally collect premiums and remit to insurers within agreed timelines.

Insurance Agents

Agents represent insurance companies directly and should not casually collect premiums through personal channels unless authorized in writing by the insurance company they're representing.

Never pay insurance money via:

  • Personal M-Pesa numbers
  • Personal bank accounts
  • Unverified agents

Always pay through:

  • Official paybill
  • Official till number
  • Official broker account
  • Official insurer bank account

Then obtain:

  • Official receipt
  • Payment confirmation
  • Policy schedule

Without proof of payment, disputes become difficult.

Mistake 4: Failure to Verify or Activate Your Insurance Certificate

Never assume your certificate is valid just because someone sent you a PDF.

Some rogue agents or brokers may:

  • Issue fake certificates
  • Issue inactive certificates
  • Sell third-party instead of comprehensive cover

Always verify.

Check the sticker or certificate.

Look for:

  • Policy number
  • Vehicle details
  • Scope of cover

Usually:

  • TPO = Third Party Only
  • COMP = Comprehensive

Make sure you received what you paid for.

Certificate Activation & Verification in Kenya

Method 1: Using USSD

Dial:

*352#

Select Activate/Verify Certificate

Enter at least two:

  • Vehicle registration number
  • Chassis number
  • Digital certificate number

System status will show:

  • Active
  • Invalid
  • Expired

Method 2: AKI Verification App

Use the AKI VIC Verification app.

Steps:

  • Download app
  • Open Verify Certificate
  • Scan QR code
  • Enter registration number
  • Tap Verify

Simple but important.

Mistake 5: Failure to Get the Right Scope of Cover

This is very common.

Not all motor insurance is the same.

Using the wrong category may invalidate claims.

Motor Private Insurance

Suitable for:

  • Private use
  • Social use
  • Domestic use

Example:

  • Family car
  • Daily commute SUV
  • Personal sedan

Commercial Own Goods Cover

For vehicles carrying goods belonging to your business.

Examples:

  • Delivery van
  • Hardware pickup
  • Bakery van

Commercial General Cartage Cover

For vehicles carrying third-party goods for payment.

Examples:

  • Logistics trucks
  • Courier transport vehicles

PSV Cover

For passenger vehicles:

  • Matatus
  • Taxis
  • School vans
  • Tour vans
  • Buses

Important:
All these can be insured as:

  • Third Party Only
    or
  • Comprehensive

Choose correctly.

Mistake 6: Excluding Excess Protection Cover

Many vehicle owners remove excess protection to reduce premium.

Then regret it during claims.

Excess is the amount you contribute before the insurer pays.

Example:

Repair bill = KSh 300,000
Your excess = KSh 50,000

You may pay the first KSh 50,000.

That can hurt financially.

Why Excess Protection Matters

Excess protection helps reduce or eliminate this burden.

It is especially important for theft-prone vehicles like:

  • Toyota Fielder
  • Toyota Corolla Axio

These are common theft targets due to spare part demand.

Mistake 7: Underinsuring Your Vehicle

Some car owners intentionally undervalue their vehicles to reduce premium.

Example:

Real value = KSh 2,000,000
Insured value = KSh 1,300,000

Looks smart initially.

Disaster during claims.

This triggers Average Clause, meaning claim payment becomes proportional.

You may lose hundreds of thousands.

Always insure using realistic market value.

Mistake 8: Failure to Declare Vehicle Modifications

Modified vehicles carry extra risk.

Always declare:

  • Alloy rims
  • Bull bars
  • Roof racks
  • Sound systems
  • Screens
  • Cameras
  • Performance upgrades
  • Custom paint

Undeclared accessories may not be compensated after loss.

Mistake 9: Ignoring Policy Exclusions

Most people never read exclusions.

That is dangerous.

Common exclusions include:

  • Drunk driving
  • Illegal use
  • Unauthorized driver
  • Mechanical breakdown
  • Wear and tear
  • Driving without valid licence

Read exclusions before buying.

Mistake 10: Choosing Price Over Value

Cheapest insurance is not always best.

Ask about:

  • Excesses
  • Courtesy car
  • Road rescue
  • Windscreen cover
  • Entertainment cover
  • Theft excess
  • Political violence cover
  • Claim turnaround time

Insurance value reveals itself during claims—not during purchase.

What Do You Need to Buy Motor Insurance in Kenya?

To buy motor insurance through Imana Insurance Agency Kenya Ltd, you typically need:

  • Copy of ID / Passport
  • KRA PIN
  • Vehicle logbook copy
  • Vehicle valuation report (for some comprehensive covers)
  • Previous insurance details (if applicable)
  • Claim history (if requested)

Why Choose Imana Insurance?

At Imana Insurance Agency Kenya Ltd, we help clients compare multiple insurers for:

✔ Better premiums
✔ Faster service
✔ Better benefits
✔ Better claim support
✔ Professional advice

We simplify motor insurance.

Compare quotes online here:
Get Motor Insurance Quote Online

Need claim support?
Submit Claims Request

Frequently Asked Questions (FAQs)

What documents are required for motor insurance in Kenya?

You typically need ID/Passport, KRA PIN, and vehicle logbook copy.

How do I verify my motor insurance certificate?

Use:

  • USSD *352#
  • AKI VIC Verification

What is the difference between third-party and comprehensive insurance?

Third-party insurance covers damage or injury caused to others.
Comprehensive insurance covers third-party liability plus damage/loss to your own vehicle.

How much does motor insurance cost in Kenya?

Premium depends on:

  • Vehicle value
  • Vehicle usage
  • Type of cover
  • Claims history
  • Add-ons selected

Need Motor Insurance in Kenya?

Compare quotes from trusted insurers within minutes.

Call / WhatsApp Imana Insurance

📞 +254 113 806 810
📞 +254 113 619 635
📞 +254 103 806 588
📞 +254 745 218 460

Website

Imana Insurance Kenya Website

Buy Online

Buy Motor Insurance Online

Office Location

📍 4th Floor, Krishna Centre, Woodvale Grove, Westlands, Nairobi, Kenya

Imana Wisdom

Motor insurance is not just about compliance.

It is about protecting:

  • Your car
  • Your finances
  • Your peace of mind

Before buying cover, pause and ask the right questions.

Compare. Understand. Verify. Then insure.

DISKAVA BETA KAVA

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