• By Raymond Momanyi

Common Insurance Mistakes Kenyans Make and How to Avoid Them

Insurance can protect your money, your health, your vehicle, your family and your business. But only if you buy the right cover and understand what it does. 

Many people in Kenya make insurance mistakes not because they are careless, but because nobody explains things clearly. They buy in a hurry, choose the cheapest option, ignore exclusions, or only start asking questions when a claim happens. 

At Imana Insurance Agency Kenya Ltd and MyKava Online Insurance Consultants, we believe insurance should be clear before trouble comes. 

Here are 10 common insurance mistakes to avoid. 

1. Buying the Cheapest Cover Without Checking Benefits

 
Cheap is not always bad. But cheap without understanding is dangerous.
 
Before buying, ask:
 

•  What is covered? 
•  What is excluded? 
•  What are the limits? 
•  What are the excesses? 
•  Which hospitals or garages are available? 
•  What documents are needed for claims? 

A cheaper policy may cost you more later if it fails to meet your needs.
 

2. Choosing Third-Party Insurance for a High-Value Car

 
Third-party insurance only protects you against third-party liabilities. It does not cover damage to your own vehicle.
 
If your car is worth millions, third-party insurance may leave you exposed if the vehicle is stolen, damaged, burnt or written off.
 
For high-value cars, comprehensive insurance is usually the smarter option.
 

3. Underinsuring Your Vehicle or Property

 
Underinsurance happens when you insure something below its real value.
 
For example, if your vehicle is worth KSh 3,000,000 but you insure it for KSh 1,500,000, claim settlement may become complicated.
 
Always use realistic values.
 

4. Not Declaring Correct Vehicle Use

 
A private car, commercial vehicle and PSV vehicle are not the same in insurance.
 
If you use a vehicle for taxi business but insure it as private, your claim may face problems.
 
Always declare the correct use.
 

5. Ignoring Policy Exclusions

 
Every policy has exclusions. These are situations the insurer may not cover.
 
Common exclusions may include:
 

•  Driving without a valid license 
•  Drunk driving 
•  Unapproved use 
•  Wear and tear 
•  Fraudulent claims 
•  Non-disclosure 
•  Uninsured risks 
•  Some pre-existing medical conditions 

Read and ask questions before buying.
 

6. Waiting Until the Last Minute

 
Many people only think about insurance when:
 

•  Police checks begin 
•  Visa appointment is near 
•  Hospital admission is needed 
•  Tender deadline is tomorrow 
•  Vehicle inspection is urgent 
•  A trip is already booked 

Last-minute buying leads to mistakes. Plan early.
 

7. Not Checking Hospital Panels

 
For medical insurance, hospital access is everything.
 
A cover may look good on paper but fail to help practically if your preferred hospitals are not on the panel.
 
Before buying medical insurance, check the hospital list carefully.
 

8. Assuming All Add-Ons Are Automatically Included

 
In motor insurance, benefits such as Excess Protector, PVT, courtesy car, road rescue, windscreen and entertainment unit are not always automatic.
 
You must confirm whether they are included or optional.
 
If you want them, add them before cover starts.
 

9. Not Keeping Documents Properly

 
Claims need documents.
 
Keep copies of:
 

•  Policy documents 
•  Insurance certificates 
•  Payment receipts 
•  Logbook 
•  KRA PIN 
•  ID 
•  Medical cards 
•  Claim forms 
•  Police abstract where applicable 
•  Valuation reports 

Poor documentation can delay claims.
 

10. Buying from Unverified Sellers

 
This is one of the riskiest mistakes.
 
Always buy insurance from trusted insurance companies, licensed intermediaries or verified channels.
 
Fake certificates and informal sellers can create serious trouble. You may think you are covered until a claim happens or police verification fails.
 

How to Avoid Insurance Mistakes

 
Before buying any insurance, do these five things:
 

•  Compare quotes 
•  Confirm the insurer 
•  Understand the cover 
•  Ask about exclusions 
•  Keep proper records 

Insurance is not just a receipt. It is a contract.
 

Imana Wisdom

 
Most insurance problems begin before the claim. They begin at the buying stage.
 
Ask better questions. Compare properly. Choose trusted partners.
 
Need help comparing insurance quotes in Kenya?
Talk to Imana Insurance Agency Kenya Ltd or MyKava Online Insurance Consultants.

Call/WhatsApp: +254 796 209 402
Websites: www.imana.co.ke | www.mykava.co.ke
Office: 4th Floor, Krishna Centre, Woodvale Grove, Westlands, Nairobi