• By Raymond Momanyi

Avoid this mistakes when buying Insurance:

Avoid 15 costly mistakes when buying insurance in Kenya. Learn how to compare premiums, benefits, exclusions, insurers and claims conditions before paying.

15 Costly Mistakes to Avoid When Buying Insurance in Kenya

Insurance should protect you when life takes an unexpected turn. But purchasing the wrong policy can leave you holding a certificate that offers far less protection than you imagined.

The problem is not always that insurance has failed. Sometimes the cover was unsuitable from the beginning. The policyholder may have selected the cheapest quotation, provided incomplete information, misunderstood an exclusion or failed to update the insurer when the risk changed.

These mistakes can affect motor, medical, travel, property, WIBA, life and business insurance.

Before paying for any policy, understand what you are buying, what it excludes and what will be required when you eventually make a claim.

Here are 15 costly insurance-buying mistakes Kenyans should avoid.

1. Choosing Insurance Based Only on the Cheapest Premium

Price matters, but it should not be the only factor.

Two insurance quotations can look similar while providing very different benefits, limits, excesses and exclusions.

A cheaper motor policy may exclude benefits included in another quotation. A low-cost medical plan may have a smaller hospital network, higher co-payments or restrictive sublimits. An inexpensive travel policy may not meet the visa or medical-limit requirements of the destination.

Before selecting a quotation, compare:

• Scope of cover
• Benefit limits
• Excesses
• Sublimits
• Waiting periods
• Provider networks
• Territorial limits
• Optional extensions
• Claims procedures
• Major exclusions

The cheapest policy can become the most expensive option when a claim is declined or only partially paid.

2. Buying From an Unlicensed Company or Intermediary

Insurance in Kenya should be purchased from an insurer and intermediary authorised by the Insurance Regulatory Authority.

Before paying, confirm:

• The insurer’s legal name
• Whether the insurer is currently licensed
• Whether it is authorised for the required insurance class
• The intermediary’s identity
• The official payment instructions
• The authenticity of the policy or certificate

Be cautious when someone:

• Demands payment through an unexplained personal number
• Offers a premium far below normal market rates
• Refuses to issue a receipt
• Cannot explain the insurer underwriting the risk
• Sends an altered or unclear certificate
• Pressures you to pay immediately
• Avoids providing policy documents

A professional intermediary should clearly identify the underwriting insurer.

3. Failing to Compare Different Insurance Quotations

Different insurers assess risks differently. Their premiums, benefits and underwriting requirements may therefore vary.

Accepting the first quotation can mean missing:

• A more competitive premium
• A wider hospital network
• Better policy extensions
• A lower excess
• More flexible payment terms
• Better limits
• More suitable claims conditions

Comparison does not mean choosing the lowest figure. It means understanding which quotation provides the most appropriate value for your circumstances.

You can request quotations through the Imana Insurance comparison platform.

4. Providing Incorrect or Incomplete Information

Insurance depends on accurate disclosure.

Some buyers withhold information because they fear a higher premium or rejection. Others allow someone else to complete the proposal form without checking the answers.

This can cause serious problems when a claim occurs.

Material information may include:

• Previous claims
• Existing medical conditions
• Vehicle use
• Occupation
• Property construction
• Business activities
• Security arrangements
• Travel destination
• Age of the insured
• Value of the insured property
• Hazardous activities
• Previous insurance cancellation

 
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15 Costly Mistakes to Avoid When Buying Insurance in Kenya

Insurance is bought with hope that it will stand between you and financial disaster when something goes wrong.

Unfortunately, many people discover gaps in their protection only after an accident, illness, fire, theft, death or business interruption has already occurred.

The problem is not always that the person had no insurance. Sometimes, the policy was unsuitable, the sum insured was too low, an important benefit was missing or the information provided during application was incorrect.

Other buyers select a policy based entirely on price, fail to read the exclusions or purchase a certificate without verifying whether the insurer and intermediary are properly licensed.

These mistakes can lead to delayed claims, reduced compensation, rejected claims or major expenses that must be paid from the policyholder’s pocket.

Here are 15 common mistakes to avoid when buying motor, medical, travel, life, property or business insurance in Kenya.

1. Choosing Insurance Based Only on the Cheapest Premium

Price matters, but it should never be the only consideration.

The cheapest policy may have:

• Lower benefit limits
• Higher excesses
• More exclusions
• Restricted hospital networks
• Fewer extensions
• Stricter claim conditions
• Limited territorial protection
• Reduced property-damage limits
• Longer waiting periods

Two policies can have similar names but provide substantially different protection.

For example, two comprehensive motor insurance quotations may differ in their treatment of:

• Excess Protector
• Political Violence and Terrorism
• Windscreen damage
• Road rescue
• Courtesy car
• Special-parts excess
• Theft by authorised drivers
• Young or inexperienced drivers

Similarly, two medical insurance plans may have different maternity limits, hospital networks, chronic-condition benefits and co-payments.

The lowest premium can become the most expensive option when an important loss is excluded.

How to avoid this mistake

Compare the premium together with:

• Benefits
• Limits
• Excesses
• Exclusions
• Waiting periods
• Additional benefits
• Claims requirements
• Insurer underwriting terms

Use the Imana Insurance quotation comparison platform to request and compare available insurance options.

2. Buying From an Unlicensed Insurer or Intermediary

Insurance should be purchased through an insurer or intermediary authorised to operate in Kenya.

Fraudulent sellers may offer:

• Fake motor certificates
• Unauthorised medical cards
• Fabricated policy documents
• Unrealistically low premiums
• Personal payment numbers
• Policies issued in another person’s name
• Certificates that do not match the insured vehicle

A polished WhatsApp profile, social-media page or website does not prove that a seller is licensed.

How to avoid this mistake

Before paying:

• Confirm the insurer’s name
• Verify the intermediary
• Check the policy or certificate details
• Use official payment instructions
• Request a receipt
• Confirm that the premium reached the intended insurer or authorised channel
• Check the current Insurance Regulatory Authority register

Imana Insurance Agency Kenya Ltd is a Westlands-based insurance intermediary helping customers compare options from selected licensed Kenyan insurers.

3. Providing False or Incomplete Information

Insurance is based on accurate disclosure.

Some buyers hide information because they fear a higher premium, additional terms or rejection. The missing information may appear unimportant during application but become central when a claim occurs.

Examples include failing to disclose:

• Previous motor accidents
• Existing medical conditions
• Previous insurance claims
• The commercial use of a private vehicle
• Hazardous business activities
• Security arrangements
• Previous policy cancellations
• Modifications made to a vehicle or building
• Regular travel to high-risk territories
• An existing pregnancy when asked
• A change in occupation

Providing inaccurate information may result in revised terms, policy cancellation, claim reduction or rejection, depending on its materiality and the policy terms.

How to avoid this mistake

Answer every proposal-form question honestly and completely.

If you do not understand a question, ask the insurance intermediary for clarification. Do not allow another person to guess the answers on your behalf.

Review the completed proposal before signing or submitting it.

4. Failing to Read the Policy Document

A policy schedule or certificate is only part of the insurance contract.

The full policy wording contains important information about:

• Insured events
• Benefits
• Limits
• Exclusions
• Excesses
• Waiting periods
• Warranties
• Claim-notification periods
• Cancellation rules
• Duties of the policyholder
• Territorial limits
• Dispute procedures

Ignoring the policy wording can create unrealistic expectations.

A motor certificate does not mean every form of vehicle damage is covered. A medical card does not mean every treatment is payable. A travel-insurance certificate issued for a visa does not mean every trip disruption qualifies for compensation.

How to avoid this mistake

Request the policy wording and read the sections most relevant to the risk being insured.

Ask for written clarification where any term is unclear. Keep the schedule, certificate, endorsements, receipts and correspondence together.

5. Confusing the Policy Name With the Actual Cover

Insurance product names can sound broader than the protection provided.

“Comprehensive” does not mean every motor loss is covered.

“All Risks” does not mean every possible event is insured.

“Worldwide cover” may still exclude treatment in particular territories or require prior authorisation.

“Family medical insurance” may apply individual limits, shared limits or dependency restrictions.

How to avoid this mistake

Look beyond the product name and ask:

• What events trigger the cover?
• Which property or people are insured?
• What are the maximum limits?
• Which exclusions apply?
• What must happen before the insurer pays?
• Are there special conditions or sublimits?

The policy wording carries more weight than a marketing slogan.

6. Selecting the Wrong Vehicle Class or Use

Motor insurance must reflect how the vehicle is actually used.

A private vehicle should not be insured as private use when it is operating as:

• A taxi
• An Uber, Bolt or other ride-hailing vehicle
• A matatu
• A delivery vehicle
• A tour vehicle
• A school transport vehicle
• A commercial goods vehicle
• A hired vehicle

The wrong classification may produce a cheaper certificate, but it can create serious difficulties when a claim occurs.

How to avoid this mistake

Tell the intermediary exactly how the vehicle is used.

Confirm that the certificate correctly shows:

• Vehicle registration number
• Vehicle class
• Policy period
• Insurer
• Permitted use
• Seating or carrying capacity, where relevant

Check every detail before driving.

7. Underinsuring a Vehicle, Building, Stock or Business Asset

Underinsurance occurs when an asset is insured for less than its correct value.

For motor insurance, the value should reflect a reasonable current market value supported by an appropriate valuation.

For buildings, the sum insured should generally reflect the cost of rebuilding—not the land value or the amount originally paid for the property.

For business insurance, stock, machinery, equipment and other assets should be declared using the applicable valuation basis.

When an average clause applies, underinsurance can reduce even a partial claim.

How to avoid this mistake

• Obtain professional valuations where appropriate
• Review insured values at renewal
• Update the insurer after major purchases or renovations
• Account for peak stock levels
• Consider inflation and changing replacement costs
• Preserve invoices and asset records

Reducing the sum insured to save premium can leave you carrying a large share of the loss yourself.

8. Ignoring the Excess

An excess is the amount the policyholder contributes towards an eligible claim.

Different excesses may apply to:

• Accidental motor damage
• Theft
• Young drivers
• Inexperienced drivers
• Special vehicle parts
• Flood damage
• Property claims
• Political violence
• Medical treatment
• Other insured risks

A policy with a lower premium may carry a higher excess.

How to avoid this mistake

Ask for an explanation of every applicable excess before purchasing the policy.

For comprehensive motor insurance, consider whether optional Excess Protector is available and understand what it protects. It may not remove every excess under every claim circumstance.

9. Failing to Add Important Extensions

Basic policies may exclude risks that matter greatly to the buyer.

Depending on the cover, useful extensions may include:

Motor Insurance

• Excess Protector
• Political Violence and Terrorism
• Road rescue
• Courtesy car
• Windscreen cover
• Entertainment-system cover
• COMESA Yellow Card
• Personal Accident benefits

Medical Insurance

• Outpatient cover
• Maternity
• Dental
• Optical
• Chronic-condition benefits
• Emergency evacuation
• Last-expense benefit

Business and Property Insurance

• Business Interruption
• Political Violence and Terrorism
• Burglary
• Machinery Breakdown
• Electronic Equipment
• Money Insurance
• Fidelity Guarantee
• Goods in Transit
• Public Liability

How to avoid this mistake

Identify the events most likely to cause serious financial loss and ask whether they are included, excluded or available at an additional premium.

Do not assume an extension is active merely because it was discussed. Confirm that it appears on the final schedule or endorsement.

10. Ignoring Waiting Periods and Sublimits

This mistake is particularly common with medical, life, maternity and funeral-expense insurance.

A waiting period delays access to a benefit after the policy begins.

A sublimit places a smaller limit on a specific benefit within the main policy limit.

A medical policy may advertise a large inpatient limit while applying smaller limits to:

• Cancer treatment
• Renal dialysis
• Maternity
• Dental treatment
• Optical treatment
• Psychiatric care
• Congenital conditions
• Organ transplants

How to avoid this mistake

Ask for a clear explanation of:

• General illness waiting periods
• Maternity waiting periods
• Pre-existing-condition rules
• Chronic-condition limits
• Cancer and renal limits
• Co-payments
• Benefit-specific limits
• Maximum entry and renewal ages

The headline limit tells only part of the story.

11. Choosing a Medical Plan Without Checking the Hospital Network

A medical policy is most useful when the insured person can access suitable facilities where they live, work or travel.

A family in Westlands may prioritise hospitals in Westlands, Parklands, Kilimani or Nairobi CBD. A family in Mombasa, Kisumu, Nakuru, Eldoret, Nyeri or another county needs adequate nearby facilities.

Hospital networks can vary between plans offered by the same insurer.

How to avoid this mistake

Before purchasing medical insurance:

• Check preferred hospitals
• Confirm facilities near home and work
• Ask about referral requirements
• Understand co-payments
• Confirm specialist-access procedures
• Check emergency admission rules
• Verify regional or overseas protection

Provider networks can change, so request the most recent information.

12. Buying Travel Insurance Only for the Visa

Travel insurance is frequently treated as paperwork required by an embassy.

That mindset can result in travellers selecting the minimum certificate without considering the real risks of the journey.

Travel insurance may cover eligible losses involving:

• Emergency medical treatment
• Medical evacuation
• Repatriation
• Trip cancellation
• Trip interruption
• Delayed baggage
• Lost baggage
• Personal liability
• Personal Accident
• Other specified travel events

However, benefits depend on the destination, trip duration, traveller’s age, purpose of travel and policy wording.

How to avoid this mistake

Confirm:

• Destination countries
• Travel dates
• Medical-expense limit
• Pre-existing-condition terms
• Sports and activity exclusions
• Baggage limits
• Trip-cancellation conditions
• Emergency-assistance contacts
• Geographical restrictions

For travel insurance comparisons, visit MyKava Travel & Insurance.

13. Allowing the Policy to Lapse

Insurance normally operates only during the stated policy period, subject to premium-payment terms.

Allowing cover to expire can leave a person completely exposed.

For motor insurance, driving without valid third-party protection can also create legal consequences. A loss occurring during a gap between policies may not be covered by the new or expired insurer.

Medical policies that lapse may lose continuity benefits and trigger new waiting periods or underwriting when reinstated.

How to avoid this mistake

• Record renewal dates
• Begin comparisons before expiry
• Respond to renewal reminders
• Confirm payment early
• Check the new policy period
• Keep proof of renewal
• Confirm that the certificate or membership is active

A promise to pay later is not the same as active insurance.

14. Paying Premiums Without Verifying the Payment Channel

Sending money to the wrong account can leave the customer without valid cover.

Red flags include:

• Requests to send premiums to an unexplained personal number
• Different payment instructions from unfamiliar contacts
• Pressure to pay immediately
• Refusal to issue a receipt
• A price far below credible market rates
• A certificate issued before necessary documents are provided
• Payment details that do not match the insurer or authorised intermediary

How to avoid this mistake

Before paying:

• Verify the quotation
• Confirm the payment instructions
• Use an official paybill, bank account or authorised method
• Record the correct account reference
• Retain the payment confirmation
• Request an official receipt
• Verify the policy or certificate after issuance

Do not rely on screenshots alone as evidence of valid insurance.

15. Waiting Until a Claim to Learn the Claims Process

The worst time to discover claim requirements is after evidence has disappeared.

Different claims require different documents. These may include:

Motor Claims

• Police abstract
• Claim form
• Driver’s licence
• Logbook
• Photographs
• Repair estimate
• Valuation report
• Inspection or assessment

Medical Claims

• Medical report
• Claim form
• Original invoices
• Receipts
• Prescription
• Laboratory results
• Discharge summary
• Pre-authorisation documents

Property Claims

• Police or fire report
• Photographs
• Purchase invoices
• Asset register
• Stock records
• Repair quotations
• Valuation documents

Travel Claims

• Medical records
• Airline correspondence
• Property irregularity report
• Receipts
• Police report
• Proof of travel
• Delay or cancellation confirmation

How to avoid this mistake

When purchasing insurance, ask:

• How quickly must a loss be reported?
• Which emergency number should I call?
• What evidence must I preserve?
• Can repairs begin before inspection?
• Which forms are required?
• Who follows up on the claim?

Save your policy documents and claims contacts somewhere accessible.

Other Insurance Mistakes Kenyans Should Avoid

The 15 mistakes above are among the most damaging, but buyers should also avoid:

• Assuming SHA and private medical insurance provide identical benefits
• Believing Third-Party Only insurance covers damage to their own car
• Buying WIBA without considering 24-hour Group Personal Accident cover
• Assuming home insurance automatically covers business property
• Insuring only the building and forgetting its contents
• Forgetting Business Interruption insurance
• Failing to name or update life-insurance beneficiaries
• Cancelling an old policy before replacement cover is confirmed
• Ignoring territorial limits when travelling or operating across East Africa
• Failing to notify the insurer after material changes
• Renewing automatically without reviewing new needs
• Giving original documents away without keeping copies

A Practical Insurance Checklist Before You Pay

Before purchasing or renewing insurance, confirm the following:

The Insurer and Intermediary

• Is the insurer licensed for the relevant class of business?
• Is the agency or broker authorised?
• Have you verified the payment instructions?

The Policyholder and Insured Property

• Are all names and identification details correct?
• Is the vehicle registration number correct?
• Is the property address correct?
• Are all dependants properly listed?
• Is the declared use accurate?

The Protection

• What exactly is covered?
• What is excluded?
• What are the limits?
• Which sublimits apply?
• What excess will you pay?
• Are waiting periods applicable?
• Which optional extensions are included?

The Claims Process

• How should a claim be reported?
• Which documents are required?
• Is pre-authorisation necessary?
• Who should be contacted after business hours?
• Are there strict notification deadlines?

The Policy Period

• When does cover begin?
• When does it expire?
• Has the premium been paid?
• Has the policy or certificate been issued?
• Do the final documents match the quotation?

If any answer is unclear, seek clarification before paying.

Why Insurance Quotations Should Be Compared

Insurers do not always assess risk in the same way.

For the same customer or asset, insurers may offer different:

• Premiums
• Limits
• Excesses
• Benefits
• Hospital networks
• Waiting periods
• Extensions
• Payment terms
• Underwriting conditions

Comparison helps identify the balance between affordability and protection.

The goal should not be to find the cheapest piece of paper. It should be to obtain insurance that can respond when the insured event occurs.

Compare Insurance Quotations in Kenya

Imana Insurance Agency Kenya Ltd helps individuals, families and businesses compare insurance quotations from selected licensed Kenyan insurers.

Available quotation categories include:

• Private motor insurance
• Commercial motor insurance
• PSV and taxi insurance
• Motorcycle insurance
• Medical insurance
• Travel insurance
• WIBA insurance
• Group Personal Accident
• Group medical insurance
• Life and last-expense insurance
• Commercial property insurance
• Marine insurance
• Professional Indemnity
• Public Liability
• Cyber insurance
• Directors and Officers Liability
• Bonds and guarantees
• Other personal and business insurance products

Through imanainsurance.com, customers can submit their details and request quotation comparisons.

For insurance guides, claims information and product education, visit imana.co.ke.

For travel and related insurance solutions, visit mykava.co.ke.

Frequently Asked Questions

What is the biggest mistake people make when buying insurance?

Selecting a policy based only on price is one of the biggest mistakes. A cheaper policy may have lower limits, higher excesses or missing benefits.

Should I always choose comprehensive motor insurance?

Not necessarily. The right choice depends on the vehicle’s value, use and the owner’s ability to absorb a loss. Comprehensive insurance generally offers broader protection, while Third-Party Only insurance mainly protects against specified liabilities to other people.

Can an insurer reject a claim because of incorrect information?

A material misrepresentation or failure to disclose relevant information can affect a claim or policy. Applicants should provide complete and accurate information.

What is underinsurance?

Underinsurance occurs when property is insured for less than its correct value. Where an average clause applies, the insurer may reduce a claim proportionately.

Why should I read the exclusions?

Exclusions explain the events, treatments, property or circumstances the policy does not cover. Reading them helps prevent unpleasant surprises during a claim.

Can I buy insurance entirely online?

Many insurance products can be quoted and arranged digitally. The customer should still verify the insurer, intermediary, payment instructions and final policy documents.

Is a quotation proof of insurance?

No. A quotation is an offer showing proposed terms. Cover is confirmed through the insurer’s acceptance, premium-payment terms and issuance of the appropriate policy, certificate or other evidence of insurance.

Can I change my policy after purchasing it?

Selected changes may be made through an endorsement, subject to insurer approval and possible additional premium. Notify the insurer or intermediary whenever material circumstances change.

Why use an insurance intermediary?

An intermediary can help identify suitable options, compare quotations, explain policy terms, arrange documentation and support communication during claims.

Final Word

The most dangerous insurance policy is not always the one with the highest premium. Sometimes it is the one bought quickly, understood poorly and forgotten until disaster strikes.

Insurance works best when the buyer is honest, the risk is correctly described, the cover is properly structured and the policy documents are reviewed before a claim.

Compare carefully. Ask uncomfortable questions. Read the exclusions. Confirm the limits. Keep your documents.

A few extra minutes before purchasing insurance can prevent months of frustration after a loss.

To compare insurance quotations in Kenya, visit imanainsurance.com.

Author: Raymond Momanyi
Founder & CEO, Imana Insurance Agency Kenya Ltd
4th Floor, Krishna Centre, Woodvale Grove, Westlands, Nairobi, Kenya

Call/WhatsApp: +254 796 209 402
Email: insurance@imana.co.ke

Quotation Comparison: imanainsurance.com
Insurance Authority and Information: imana.co.ke
Travel and Insurance: mykava.co.ke

This article provides general insurance information. Premiums, benefits, limits, excesses, exclusions and acceptance depend on the selected insurer’s current policy wording and underwriting terms.