Motorists are set to pay more for insurance after some firms reviewed their premiums for the new year, Nation reported.
According to the report, the increase has been attributed to inflation with some of these insurance firms raising premiums by up to 40 percent.
For instance, a motorist who spoke with Nation said her annual comprehensive cover had been increased from Ksh 31,000 to Ksh 44,000.
A source in the insurance business said the high cost of business has forced firms to review their premiums.
“Each insurer has its reasons for increasing their premium rates. But what we have witnessed recently is a steep growth in the cost of motor vehicle repairs and spare parts
“Therefore, we are seeing insurers increasing premium prices to reflect the situation on the ground,” the source said.
In November, GA Insurance Limited has published a list of vehicle models that they won’t underwrite on comprehensive basis.
In a memo to its business partners, the insurance company explained that they had incurred losses while covering such vehicles.
The company noted that these vehicles’ usage has been misemployed and turn out to be a challenge when settling claims.
GA stated that the decision is to ensure smooth running of the business.
The vehicle models are Toyota Probox, Toyota Succeed, Toyota Sienta, Toyota Passo, Toyota Porte and all Suzuki models valued below KSh 1 million.
