Vehicle Maintenance: How it affects Your Car Insurance Premiums?

Vehicle Maintenance: How It Affects Your Car Insurance Premium?

Motor Insurance-

If you really adore your vehicle, you will surely understand how important it is to maintain your vehicle timely.  A vehicle’s life expectancy is strictly affected by the way it is kept. Little ignorance can turn into huge problems.  One of the major problems that you might face is an increase in your auto insurance premiums if you will not treat your vehicle in a right way.

How are Cars rated In Kenya?

Cars are rated based on two important factors – Value of Car and Risks of being in an accident.

Value of Car:

Value of Car has a lot to do with your insurance premiums.  This is because lesser the value of your car is, the fewer premiums it will incur. Your insurer will not have to pay a large amount out of any claim.

With time, the value of a car depreciated and of course, each car depreciated with a different value because the impact of rate value differs from brand to brand. A high-end luxury car will surely end up costing you more to insure. The cost of parts, repairs, or even replacement in the event of a total loss can be very expensive for the insurance company. Thus they will charge a higher premium.

Risks

The risk factor impacts a number of areas while calculating premium rates for car insurance kenya . Typically, insurance companies consider stats  since accident statistics will impact mainly the cost of your liability & accident benefits insurance, although a big factor in that area is your driving record and experience

Insurance companies use a complex system of statistics and their own value system to come up with the premiums for each portion of your insurance coverage.

Although many different factors are considered while calculating insurance premiums, still a car itself impacts intensely on the insurance cost. You might notice that your friend with the same model is paying lower or higher than you. Nothing shocking .. it is just because a car is completely under its driver’s control:

  • How well you maintain your car?
  • how carefully you drive?
  • How soon you service it?
  • Did you ever make any claim?
  • Is your driving history clean?

Why it’s so important to maintain a vehicle?

Maintaining your vehicle will extend the longevity of your car and that can translate to big money savings. Every extra year you add on to a vehicle’s life expectancy lessens your out-of-pocket expenses for auto payments, insurance, and taxes. This can happen only if you take care of your asset properly.

Regular car servicing, quality car repairs, and regular washing are indispensable for maximizing the value as well as the performance of your car. Make sure that you keep a record of full-service history in your car’s logbook. It will help you lower your car insurance premiums.

If you think that maintaining your car will be expensive then this ignorance will end up costing you extra shillings in all areas of car dealership: auto insurance, auto repair cost, as well as loss during vehicle resale.

Impacts of Vehicle Maintenance on Insurance Rates:

1. Your Car Insurance Rates May Increase

To start, when you don’t take your car for regular servicing or maintenance when required, it becomes riskful for driving. From an insurance perspective, every insurer checks the condition of the car while insuring it.

When you don’t properly maintain your vehicle, it is considered more unsafe to accidents and might be proven as a  cause in any such event The lack of regularly scheduled maintenance will either result in a surcharge of extra higher premiums or the insurance company can be absolved of all financial responsibility.

2. A significant decrease in the value of Car

A car’s life period varies greatly according to make, model, use, storage, driving conditions and environment. When we talk about ways to save money on car insurance, car maintenance is probably the biggest way to save on car insurance.

Why? For instance – if your vehicle is totally damaged in an accident due to unhealthy condition of your car or any other reason – let’s say, the insurance company will inspect the case deeply understanding the reasons of the accident.

And somehow, they realized that the vehicle required servicing or repairing or replacement of any auto spare part, due to which it leads to a serious accident. Firstly, your insurer will not cover you for this kind of incidence.

Secondly, if we assume that they will try to resolve the case, you will not be covered with the total loss insurance – in which the insured is covered with the value determined by – actual car value minus depreciation.

Your Car Value will be decreased and apparently, was not well maintained, you will get a very small amount of reimbursement and you can’t help this!

So, we recommend, spending a little amount now on your car will help you save huge from repair costs, insurance costs and taxes later on.

3. Your Driving Record can mean big shillings different on your Insurance Rates

If your vehicle leads to brake failure or other such accidents, it may wash out the driving record you maintained for a long time. Now that you have a driving history registered with smaller claims, it will not be beneficial for your car insurance rates.

Being a risky driver, you will have to pay an extra amount from your pocket as car insurance premiums. Whereas regular servicing, repair, and cleaning can help to extend the life of a car.  More than any other factor, it will ensure you with significant lower premiums every year.

4. How frequent you drive?

When you take your car regularly to your job, it means the car is more than just a luxury, so you have to maintain it well for a safe driving. Your insurance providers really care about certain things –

-> why do you drive?

->how frequent you use your vehicle?

-> What’s the mileage on your car?

A regular use but no maintenance can lead to big accidents, which is why you are asked to maintain your car timely.  More than any other factor, a regular car service by a skilled and credible technician will help you to ensure the longevity of your car’s life as well as the safety of driver along with other passengers in the car.

5. You may lose your license and this will definitely be a Great Loss:

When you don’t care about the vehicle, it can affect the engine performance. Are you changing oil frequently enough for the proper functioning of your engine? It can adversely affect the fuel consumption as well as car’s performance. A smoking engine not only results in downgrading the vehicle’s performance but also, will result in license cancellation for driving an unsafe vehicle.

The license cancellation, additionally for more than one time and the reasons for which it is canceled and the time period for which it is canceled affects your car insurance cost severely. The reason is that it indicated what kind of driver you are and questions your driving experience in an indirect way. Thus, you will more likely pay higher rates

It’s really important to know how your insurer might determine your rate. If you are shopping around to buy a new car, this way, you can always make sure to consider every factor that might increase your insurance rate and purchase a right vehicle and keep it well maintained.

Car Maintenance Tips

Vehicle maintenance in a timely manner always pays off especially during maintenance related insurance issues. Here are some important car maintenance tips that will increase the life expectancy of your car making it durable as well.

  1. Keep your car always neat and clean.
  2. Change the oil frequently. Also, keep a check on oil filters and change them as specified in your car manual.
  3. Change your tire air pressure levels once a month.
  4. Make sure all your headlights, brake lights, taillights, and blinkers work. If not, do visit a nearby vehicle workshop.
  5. Check your air filter for their proper functioning.
  6. Make sure your engine belts work.
  7. Maintain the cooling system of your car.

Keep following these tips on a regular basis will keep your vehicle in good condition. Additionally, you will save more on your car insurance rates.


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