In the Kenyan roads, a peculiar trend has emerged – the allure of big and expensive cars. However, the true cost of ownership for these vehicles goes beyond the initial price tag. Unsurprisingly, insuring these colossal machines often comes with eye-watering premiums that leave many wondering about the underlying factors. Take the mighty Land Cruiser V8, a king of the roads renowned for its ruggedness and spaciousness. While owning one might feel like conquering the open plains, conquering your insurance premium might feel like scaling Mount Kenya itself.
Let’s talk numbers.In 2024 A brand-new Land Cruiser V8 can set you back a cool Ksh14 million. Now, imagine shelling out around Ksh500,000 to Ksh700,000 annually for comprehensive insurance – that’s roughly 5% of the car’s value just to keep it covered! Compare that to a smaller, more fuel-efficient sedan with a price tag of Ksh2 million. Its comprehensive insurance could cost you around Ksh100,000 to Ksh150,000 yearly – a significant difference, to say the least.
while comprehensive insurance provides the ultimate peace of mind, covering your own damage and third-party claims, many Kenyan drivers with big cars opt for the bare minimum – third-party insurance. This cheaper option, costing around Ksh20,000 to Ksh30,000 annually, only covers damage you cause to other vehicles and property. But be warned, if your beloved Land Cruiser gets dinged, scratched, or worse, you’ll be singing a different tune at the repair shop.
So, why do big cars and expensive cars attract such hefty insurance premiums? Here’s the breakdown:
Big cars come with big parts, and fixing a fender bender on a Land Cruiser is no small feat compared to a hatchback. Expect bigger repair bills, which translate to higher insurance premiums.
These cars, especially Land Cruisers, are unfortunately high on the wish list of car thieves. Insurance companies factor in this risk, bumping up the premiums to cover potential losses.
Studies show that drivers of larger cars tend to be involved in more accidents, even if it’s just due to their increased size and blind spots. This statistic reflects in the higher premiums.
Owning a big car in Kenya is a dream worth pursuing, but be prepared for the reality of its hefty insurance price tag. Weigh the costs, consider your needs, and drive responsibly. After all, the open road should be about freedom, not financial anxiety.
