WHY COMPREHENSIVE INSURANCE IS KEY
Cemes Insurance provides insurance covers to motorists based on particular risk modeling techniques. The critical question that the risk model answers is, “How likely is it that this specific customer will make a claim?” Through the years, insurance companies have streamlined their risk modelling techniques. Once the critical question is addressed, the remaining task is usually to determine the risk classification of the applicant in order to arrive at the right level of premium to charge. The underlying factor is the value of the car. Other fundamental considerations made by insurance companies are as follows;
Comprehensive car insurance is the most preferred type of insurance for your car. This is because it provides protection from a wide range of risks that are possible to happen. The list below further explains evident benefits of taking the comprehensive car cover in comparison to other covers.
1. It covers you from Total Loss
The first benefit of the comprehensive car insurance cover is that it protects you from the total loss of your car. Total loss of a car may arise from three circumstances.
First, the car may be stolen, and is not recovered thereafter. This can happen if it is cannibalized for parts, or if it is driven to another country. The spare part market is very lucrative in Kenya, and it is possible to lose a car to thieves who plan to strip the car and sell spares.
Secondly, the car may be written-off after an accident. In this case, the total cost of repairs would exceed at least 50% of the sum assured. Insurance companies prefer to write off such cars rather than to repair them.
Thirdly, the car many be involved in a fire. If the fire completely burns the car, then the car is a total loss. In these cases, the insurance company will settle your claim, and will enable you to get a new car.
2. You are covered from Theft of Car Parts
Car thieves can also target your car for theft of car parts. In this case, the car may still be intact but you may lose key components to the thieves. As already mentioned, the spare parts business for certain car models e.g. Toyota and Nissan, is lucrative in Kenya.
In this case, thieves may not fully strip the car, but will remove certain parts like headlamps, tail lamps, wheels, car stereos, for resale on the black market. If you have a comprehensive policy, you can make a claim based on these risks and your insurance company will compensate you for the loss.
3. You don’t have to pay for Accidental Damage
The third benefit of the comprehensive car cover is that you do not have to pay for accidental damage. In case your car is involved in an accident, you insurance company will pick the tab and will repair the damages to your car. This benefit is especially important if the damage to your car is substantial.
4. You will have a Courtesy Car while your Car is being repaired
Many insurance companies will also give you a courtesy car during the period when your car is in a garage for repairs following an accident. The courtesy car ensures that you can still carry on with business as usual, as your car is repaired. The availability period of the courtesy car will vary depending on the details of your policy.
5. You can enhance your Cover to Include Uncommon Risks
The comprehensive car insurance cover usually has the option of enhancing it to include uncommon risks such as terror, political violence, among others. This ensures that you have a broader cover for a larger range of risks than what you can have with any other class of car insurance cover in Kenya.