How Motor Insurance Works in Kenya

Motor insurance is a contract between you (the policyholder) and an insurance company (the underwriter). You pay a premium — a fixed amount — and in return, the insurer agrees to cover certain financial losses you may suffer as a result of owning or operating your vehicle.

In Kenya, motor vehicle insurance is regulated by the Insurance Regulatory Authority (IRA), which licenses all underwriters and intermediaries operating in the market.

Understanding who does what in motor insurance:

Policyholder: You — the vehicle owner who purchases the insurance.

Underwriter: The licensed insurance company that assumes the financial risk.

Insurance Intermediary: A licensed agent or digital platform (like Wheelswise) that connects you with underwriters.

IRA: The Insurance Regulatory Authority of Kenya — the government body that regulates all parties.

A premium is the amount you pay for your insurance cover. Motor insurance premiums in Kenya are calculated based on several factors:

The type of cover (comprehensive is higher than TPO).

Your vehicle's value (higher value means a higher premium for comprehensive cover).

Motor type (private, commercial, PSV).

Vehicle age and make/model.

Any additional benefits selected.

Premiums are typically paid annually, though some underwriters offer installment options.

An excess is your contribution towards a claim before the insurer pays the remainder. For example, if your policy has a KES 7,500 excess and you make a KES 50,000 claim, you pay KES 7,500 and the insurer covers KES 42,500.

Excesses are standard in comprehensive policies. They reduce the insurer's exposure to small claims and help keep premiums lower.

When you suffer an insured loss:

1. Notify your underwriter immediately — delay can affect your claim.

2. Do not admit liability at the scene of an accident.

3. Gather evidence — photos, witness contacts, police abstract.

4. Submit a formal claim to the underwriter with supporting documents.

5. The underwriter assesses the claim and determines the payout.

6. Payment is made directly to you or a repair facility.

Your insurance certificate is the official document proving you have valid motor insurance cover. It includes your policy number, vehicle registration, cover period, and the name of your underwriter.

In Kenya, you are legally required to carry your insurance certificate when operating a vehicle. On Wheelswise, your certificate is issued digitally and immediately upon payment confirmation.