Kenyan insurer unveils cover for EVs

From the newsletter 

Britam, a leading Kenyan insurer, has unveiled an EV insurance policy to cover fully electric and hybrid vehicles. The cover safeguards the battery and electric motor, the most expensive components of an EV. It also covers personal charging equipment and an out-of-charge rescue service to ensure stranded EVs are towed to the nearest charging station. 

• EVs are costlier than fuel vehicles, and also come with expensive parts and components like batteries. This makes insurance pivotal for EV ownership, as the replacement cost of such components could be beyond the reach of many users. 

• Insurance covers for EVs are currently higher compared to covers for fuel vehicles, mainly because of the higher costs associated with replacing the EV and their parts. As EV prices are expected to gradually decline, this could ease the cost of insurance. 

More details

• Britam’s EV cover also extends comprehensive protection against accidents, theft, fire, flooding, and malicious damage, alongside political violence, terrorism cover, road rescue, courtesy vehicles, and excess protection under Britam’s standard motor package. It further covers privately used electric motorcycles, widening its reach in Kenya’s green transport ecosystem. 

• “This EV insurance cover shows how Britam innovates to meet evolving customer needs while supporting sustainable transport,” said Britam Insurance CEO James Mbithi. “By providing tailored EV insurance, we are contributing to a low-carbon future while helping the market scale responsibly.”

• Britam joins a growing list of Kenyan insurers that are covering EVs. Kenya has more than 50 insurance companies, a number of which have already introduced EV covers. GA Insurance was among the first insurers to do so, introducing a cover for EVs in 2023. GA’s policy covers several aspects, including loss or damage of the EV and its accessories. Pioneer Insurance has also introduced its own cover for EVs. 

• Across Africa, EV insurance is not uniform. While some insurers offer separate covers for EVs, others include EVs in their ordinary motor vehicle insurance covers. However, some insurers cover specific components like the battery and charging equipment. Further, data from other markets with higher electric car penetration show that average EV insurance premiums are higher than those of petrol or diesel models. 

• A major challenge affecting insurance for EVs is that EVs generally lead to fewer but costlier claims. For example, minor accidents may require battery or sensor replacements—which are expensive and scarce in parts supply. These results in high insurance costs that may lock out many users. At the same time, insurers currently lack benchmark data to accurately price risk, which is partly leading to the high premiums.  

• The number of EVs hitting the road in Africa is growing rapidly, with electric car sales more than doubling to 11,000 in 2024 compared to 2023, according to the International Energy Agency (IEA). This will give insurers more data points to refine their models and accurately assess risk, which could lead to a gradual reduction in premiums.  

Our take

• Britam, GA and Pioneer show that the market for EV covers is expanding. This increased competition will accelerate innovation in Kenya, where insurance uptake is below 5%, and the introduction of more specialised products.

• EVs are more sophisticated than fuel vehicles, which is expected to result in more insurers rolling out tailored covers for batteries, charging equipment, and out-of-charge rescue, moving beyond simply adapting conventional motor policies. 

• EV parts in Kenya are scarce and costly. To address these issues and lower claims costs, insurers will need to work with auto repair shops to develop specialised EV repair networks. Clear standards for EV parts, maintenance, and safety will also help standardise risks.