They operate a profitable, efficient, resourceful, and ethical organization that will survive well into the future and be a valuable asset to its shareholders. No matter your financial capability, they have different motor Insurance plans that are just right for you. You might want to check them out to see other tremendous benefits in store for you.
Car Insurance – Did you know that if you are involved in an car accident and your vehicle is destroyed, you do not have to worry about how to acquire a replacement car in Tanzania?
However, many Tanzanians are either unaware of car insurance in Tanzania or just do not care to register. However, car insurance is mostly for the owner’s advantage because it protects the owner against any financial loss experienced as a result of owning and operating an a car in Tanzania.
Before you go behind the wheel of a car, you must have some form of auto insurance. This isn’t simply an optional aspect of driving; in Tanzania, drivers are obliged by law to have a car insurance.
While there are several alternatives for drivers seeking for coverage, sorting through them all may be time-consuming. That’s where we come in; our guide to the top car insurance companies in Tanzania should assist you in determining which insurance company and coverage is most suited to your vehicle and scenario.
Let’s start with the fundamentals. The most basic car insurance policies include property damage, personal injury protection, and bodily harm liability coverage in the event of an accident.
Other forms of coverage can be added from there. These may include damage to your own vehicle for a variety of reasons (collision coverage), roadside assistance, car accident incidents with uninsured or underinsured drivers, personal injury protection, and medical expenses incurred as a result of accidents, as well as personal injury protection and medical expenses incurred as a result of accidents.
Some car insurance companies in Tanzania also provide complete coverage, which may include roadside assistance or can be combined with homeowner’s insurance (if you own a home).
Read Also: 10 Best Commercial Banks in Tanzania
Is car insurance compulsory in Tanzania?
Getting car insurance in Tanzania is very compulsory. Although there are two main types of auto policies in Tanzania, the Motor Vehicle (Third-party) Insurance Act of 2009 makes Third-party auto insurance very compulsory to have. And failure to have one can get a person imprisoned or fined.
Types of Car Insurance Policies In Tanzania
In Tanzania, car owners can buy two types of car insurance policies. They are:
Comprehensive Car Insurance
A comprehensive car insurance coverage protects the insured car completely. It safeguards the car from unanticipated dangers such as fire, accidents, theft, vandalism, natural calamities, and man-made disasters. It also covers any third-party unintentional liabilities to which the policyholder is legally obligated. Furthermore, this form of insurance covers the owner-driver of the covered car for personal accidents.
Third Party Liability Car Insurance
A third party liability car insurance coverage protects the policyholder against any third-party liabilities stemming from inflicting unintentional bodily harm, death, or property damage to a third party. This insurance does not cover any losses or damages incurred by the covered car or its driver.
Standalone Own Damage Car Insurance
A standalone own damage car insurance policy covers just the damages caused by the insured car. It protects the insured four wheeler against any loss or damage caused by uncontrolled occurrences such as fire, natural disasters, theft, accidents, and man-made calamities. This sort of car insurance plan is only accessible if the car owner already has third-party car insurance for the insured vehicle.
Difference Between the Types of Car Insurance Plans in Tanzania
Car owners in Tanzania can purchase three types of car insurance policies for their vehicles. When it comes to insurance coverage, these plans are vastly different.
To understand the distinction between a comprehensive, third-party liability, and standalone own damages car insurance policy, refer to the table below:
|Coverage||Third Party Liability Car Insurance||Standalone Own Damage Car Insurance||Comprehensive car Insurance||Zero Depreciation Car Insurance|
|Third Party Property Damages||Yes||No||Yes||Yes|
|Third Party Vehicle Damages||Yes||No||Yes||Yes|
|Bodily injuries/ disability/ death of the third party||Yes||No||Yes||Yes|
|Loss/ Damages to the insured car in an accident||No||Yes||Yes||Yes|
|Loss insured due to theft of the insured car||No||Yes||Yes||Yes|
|Loss/ Damages to the insured car in a natural calamity||No||Yes||Yes||Yes|
|Loss/ Damages to the insured car in a fire||No||Yes||Yes||Yes|
|Loss/ Damages to the insured car in a manmade calamity||No||Yes||Yes||Yes|
|Personal Accident Cover (if opted)||Yes||Yes||Yes||Yes|
|Mandatory by the law||Yes||No||No||No|
|Zero depreciation cover (if opted)||No||Yes||Yes||Yes|
|Other Add-on covers||No||Yes||Yes||Yes|
10 Best Car Insurance Companies in Tanzania 2021
1. Jubilee Insurance Company of Tanzania Limited
Jubilee Insurance Company is one of Tanzania’s top car insurance providers. Jubilee Insurance Company is a well-known name in Tanzania’s insurance business.
It provides both comprehensive and liability-only car insurance policies. The plans are cheap, flexible, and may be tailored to the policyholders’ specific requirements.
Jubilee Insurance covers third-party legal obligations as well as any loss or damage to your car caused by natural/man-made disasters or theft. Their vehicle insurance policy includes coverage for automobiles, trucks, and motorbikes. Jubilee Insurance adjusts to your needs, ensuring that your insurance is covered by a policy that meets your needs while remaining within your budget.
2. Alliance Insurance Corporation Ltd
Alliance Insurance Corporation Ltd. is also one of Tanzania’s best car insurance providers, having a great track record. Alliance Insurance Corporation Ltd. covers damage to your car, fire, and theft, as well as personal injury and property damage caused by an accident.
Aside from that, it covers third-party liabilities and provides personal accident coverage. Alliance Insurance Corporation Ltd offers three different types of car insurance policies:
- Comprehensive car insurance
- Third-party liability plan
- Standalone damage plan
3. First Assurance
First Assurance is one of the leading car insurance providers in the Tanzania that provides extensive protection to the insured car. First Assurance is an auto insurance company that is very professional at delivering their duties. They have an inspiring vision, an achievable mission.
It will offer coverage against loss/damage to the car following a natural calamity, manmade calamity as well as for third-party legal liabilities. It also provides personal accident cover to owner-driver which can be extended to cover the passengers on the payment of the additional premium amount.
First Assurance is available in two plan variants:
- Comprehensive car insurance
- Third-party car insurance
4. Mayfair Insurance Co. Tanzania Ltd.
Mayfair Insurance Co. Tanzania Ltd. is amongst the most popular car insurance providers in Tanzania. It offers all-round protection to your car with its comprehensive private car insurance plan. It provides coverage for loss or damage to your car due to natural or manmade calamities along with third-party legal liabilities.
Their values include professionalism, relationship, integrity, customer-focused, and more. They can serve you well at insuring your vehicle.
5. Britam Insurance Tanzania Ltd.
Britam Insurance Tanzania Ltd. is one of the best car insurance companies in Tanzania with a presence in about 26 regions across the country. It is a well-known provider of car insurance that offers both liability-only policy as well as a package policy.
It provides coverage for the personal accident of owner-driver, third-party liabilities as well as any loss/damage caused to your car due to theft, natural and manmade calamities.
Britam Insurance Tanzania Ltd. scheme is also satisfying and very reliable, and you can trust them for your auto insurance in Tanzania.
6. Milembe Insurance
Milembe Insurance is also one of the popular car insurance companies in Tanzania, which you might also find interesting. It provides complete protection from any damages/ losses caused to your car following an accident, natural calamities or theft along with covering third party legal liabilities.
In addition, it also provides personal accident cover for the owner-driver.
The purpose of Milembe Insurance is to develop, package, and deliver innovative insurance products that best satisfy the needs of their customers.
They operate a profitable, efficient, resourceful, and ethical organization that will survive well into the future and be a valuable asset to its shareholders.
7. Bumaco Insurance Company Ltd
Bumaco Insurance Company Ltd is another extremely popular car insurer offering quick insurance solutions for your four wheeler. It offers a comprehensive policy that will protect your car against third-party liabilities as well as from any losses or damages caused due to collisions, manmade/natural disasters or theft.
Bumaco Insurance Company Ltd offers two types of plans:
- Third-party liability car insurance policy
- Comprehensive car insurance policy
8. MO Assurance Company Limited
MO Assurance Company Limited promises total protection for your car against any unforeseen exigencies. Its Car Shield Insurance policy offers comprehensive car insurance coverage that includes personal accident cover for owner-driver, indemnity for third party property and third-party liabilities.
It provides loss or damage protection from accidental & external damage, natural disasters, fire & explosion, burglary & theft, malicious act and manmade disasters.
MO Assurance Company Limited also provides you with the choice of opting for additional cover including personal accident cover for paid drivers and unnamed passengers, CNG kit/ bi-fuel system cover, legal liabilities for paid drivers & employees and electrical/ non-electrical fittings.
Moreover, MO Assurance Company Limited has the highest Incurred Claim Ratio (ICR) amongst private car insurance companies in Tanzania.
9. Sanlam General Insurance
Sanlam General Insurance is a popular motor insurance company offering comprehensive policies to protect your car. It offers coverage for accidental damage to the vehicle, personal accident to owner-driver and third party liabilities.
Cover for insured vehicle damage or loss is available against fire, natural disasters, self-ignition, explosion and accidents. Their auto insurance covers cars, trucks, and motorcycles. Sanlam General Insurance adapts to your need so that your insurance is taken care of through a policy that suits you and won’t blow your budget.
10. Zanzibar Insurance Corporation
Zanzibar Insurance Corporation is a public insurer that provides comprehensive protection to your private car. Its private car insurance policy has been designed to cover accidental damage/ loss to the vehicle, third-party liabilities as well as loss/ damage caused during the theft, natural disasters, fire/explosion/lightning/self-ignition or while in transit.
No matter your financial capability, they have different motor Insurance plans that are just right for you. You might want to check them out to see other tremendous benefits in store for you.
Read Also: 10 Best Insurance Companies in Tanzania
Important Factors to Consider When Choosing the Best Car Insurance Policy in Tanzania:
When looking for the best car insurance policy, keep the following points in mind:
Compare the Key Benefits of the Insurance Coverage
Compare your shortlisted motor insurance policies to see if they all provide the same type of insurance coverage. Your insurance policy should include all of the key car inclusions (such as own damage cover) and provide you with coverage against a personal accident as well as third-party injuries.
Examine Add-on Riders as a Component of the Best Car Insurance Policy in Tanzania
It is always advisable to pay close attention to all of the add-on riders in order to select the best car insurance policy in Tanzania with additional benefits. We have listed a few important motor Insurance riders below for your convenience.
It adds an extra layer of security by protecting you from additional expenses incurred as a result of car engine damage.
Coverage for Third-Party Liability
Third-party Liability coverage protects the car owner from any financial liability that may arise as a result of bodily injury, death, or damage repair costs caused by a third-party motor.
Coverage for Roadside Assistance
If you become stranded due to engine failure or an accident, or if your car’s tire becomes punctured, you have the option of requesting roadside assistance. It will allow you to contact your insurer and request that a car mechanic be dispatched to your location.
Coverage for Zero Depreciation
When you add zero depreciation coverage to your car insurance policy, your insurance company waives the depreciation on substituted car parts. It denotes that you are eligible for a larger claim amount.
Personal Accident Insurance
Personal accidental coverage provides financial protection to the vehicle owner against unexpected and unfortunate events that may cause physical trauma, accidental death, or the person may become permanently disabled as a result of a road accident.
Consider Car Insurance Reviews
Make sure to inquire about the experiences of your extended family and friends with any specific motor insurance company. The feedback you receive directly from your loved ones may give you a better understanding of how its customer support and claim procedure work. It will assist you in making an informed decision.
Flexible Car Insurance Coverage Options
A flexible coverage is always important when purchasing the best car insurance policy in Tanzania. Because the consumer base is diverse, there is no ‘one-size-fits-all’ policy.
You must select a car insurance policy based on your insurance requirements. Priority must be given to an insurance provider that provides flexi-coverage over other needs. This means that if the insurance provider offers a pre-existing package that is tailored to your specific needs and requirements, you should consider it a positive sign.
Online Insurance Premium Comparison
The Internet is teeming with ostensibly great deals. Don’t fall for them; they could be nothing more than a ruse. When you take some time out of your hectic schedule to search the Internet, you can find a good deal.
Keep the following points in mind when comparing car insurance plans online:
- Compare the various insurance plans provided by various insurance providers.
- Check that the comparison site calculates the premium based on the fixed IDV (Insured Declared Value).
- Compare insurance premiums on at least three different online insurance comparison websites.
Factors Influencing Your Auto Insurance Premium
The factors that influence car insurance premiums are determined by the risks that the insurance provider underwrites. These elements are classified as follows:
The model of your car, cubic capacity, fuel type, and other factors all contribute to the cost of your car insurance. Some services, such as commercial vehicles and SUVs, i.e. Sports utility vehicles (SUVs) frequently necessitate higher premiums because insurance companies receive a high volume of claims on these vehicles. Diesel cars typically have a 10-15% higher premium than gasoline vehicles.
Risks Associated with the Location:
This is determined by the registration area. In general, premiums are higher if the car owner lives in an urban area, a densely populated area, or near a highway. If vehicle theft or loss is more common in your area, your car insurance premiums will rise.
Risks Associated with the Driver of the Car
The driver’s occupation and age are taken into account. You must pay a higher premium if you have multiple drivers on your car.
The Key to Success is Negotiation
Negotiate with your current insurance provider when it comes to purchasing motor insurance. You never know, you might end up with a bonus if you’ve been a responsible driver and haven’t filed too many claims or been in too many accidents.
Protect Your No Claim Bonus (NCB)
If you are a responsible driver and have never filed a claim, you are eligible for the No Claim Bonus (NCB). If you do not file an auto insurance claim for a year, your car insurer will give you a No Claim Bonus. This is the discount applied to your insurance premium when you renew your policy. You have the option of going with NCB.
Take a look at the Claim Settlement Ratio (CSR)
Last but not least, consider the insurer’s previous record of claim settlement before finalizing a car insurer. The Claim Settlement Ratio is the amount of time it takes an insurer to settle claims from its customers. Proceed only when everything is in order. If the CSR is poor, don’t even consider purchasing the best car insurance policy in Tanzania.
How to Select the Best Car Insurance Company in Tanzania
Choosing the best auto insurance company isn’t a difficult task. However, you must be aware of the type of protection you require for your vehicle. With that in mind, here are a few pointers to help you select the best car insurance company in Tanzania. Look at this:
- Analyzing Car Insurance Needs – Before deciding on the best car insurance company, you must first assess your insurance requirements. You must be aware of the level of coverage you require as well as any specific add-ons that you wish to purchase. You should also be clear on the Insured Declared Value (IDV) of the car you want. Furthermore, you should be aware of the maximum premium that you are able to pay for the policy.
- Authenticity of the Motor Insurance Company – Now that you’ve determined your car insurance requirements, you’ll need to locate reputable motor insurance companies in the market. You can verify the legitimacy of a car insurance company by looking up its TIRA Registration Number. Tanzania Insurance Regulatory Authority (TIRA) is Tanzania’s regulatory authority for insurance companies, and it only issues registration numbers to legitimate insurance providers.
- Financial Capability of the Company – In addition to verifying the authenticity of the car insurance company, you should also investigate its financial standing. This will assist you in understanding the company’s financial stability and determining how likely it is to pay you the claim amount within the hour of need. You can determine the company’s financial stability by reviewing its annual financial records and calculating its solvency ratio.
- Claim Settlement Ratio – Before proceeding, you should review the car insurance company’s claim settlement ratio (CSR) and incurred claim ratio (ICR). The total percentage of claims settled by the insurance company is referred to as the CSR. ICR, on the other hand, refers to the total percentage of premium used by the insurance company as a percentage of total premiums collected. You should look for a company with a higher CSR and ICR because it indicates a lower likelihood of your claims being denied by the insurer.
- Claim Settlement Speed – In addition to claim ratios, you should look into the car insurance company’s claim settlement speed. You should choose a company that has a faster claim settlement speed because it indicates that the insurer will pay you the claim amount as soon as possible.
- Customer Service – When choosing the best motor insurer, consider the customer service of the car insurance business. The customer service department gives you an indication of how easy it will be to contact the insurance and seek assistance. You should choose a business that offers round-the-clock services to its clients and can be reached 24 hours a day, seven days a week.
- Online Comparisons – The best method to locate a car insurance provider that best meets your insurance requirements is to do online comparisons. When you compare car insurance plans from several motor insurers online, you will be able to compare their coverage level, premium rate, and perks provided. The perfect insurance provider would offer you with comprehensive coverage while not charging you an exorbitant cost.
- Customer Reviews – Before selecting a car insurance company, it is usually a good idea to read the customer reviews of the different providers. Customer reviews will provide you an indication of the kind of insurance experience you will have with the business. You should choose with a car insurance provider that has more good than negative client ratings.
When buying a car insurance policy, it is critical to review the policy features, the number of network garages providing cashless repair, add-on protection, and the company’s incurred claim percentage.
You may pick the finest motor insurance in Tanzania from any of the above-mentioned car insurance providers and get maximum coverage advantages at a low cost.
Jobs in Tanzania is not a licensed insurance company, agency or broker and we do not sell, solicit or negotiate insurance. Our content provides summaries of insurance providers and/or products that may not include all terms, benefits or limitations of such provider or product. Please consult a licensed insurer or producer regarding any insurance product.