Most Ugandans on third-party insurance think they're insured. They're not. They've just paid a legal fee to be allowed on the road.
Third-party covers the other guy. That's the entire job. If you hit a boda, MTP (Motor Third Party) pays him up to 1M for injury and 10M total across all victims in one accident. Your car, your bumper, your medical bills, your stress. Your problem.
And the actual price some people quote is wrong. MTP in Uganda right now is about UGX 76,000 a year which can slightly vary by provider.
Comprehensive is regulated at roughly 4% of your car's market value per year. A 20M Vitz costs around 800k. A 30M Noah sits at about 1.2M. A 50M Harrier is closer to 2M. An 80M Prado pushes 3.2M. Install a tracker and most insurers knock up to 15% off.
Here is the math nobody runs. If your car is worth 30M and you are paying 76k for MTP, you are sitting on a 30M asset with zero cover for theft, fire, your own accident damage, vandalism or the boda that hit and broke your side mirror and disappeared on Kampala Road in our usual crazy traffic.
One bad afternoon erases the asset. The 1.2M would have replaced it.
If your car is worth under 15M and you can absorb the full loss, third-party is reasonable. Above that if you are not insuring. You are gambling. And with the indiscipline and chaos on our roads, "the buying land & building a house guys" get to win eventually...๐
Are you on MTP only or comprehensive? Has yours ever paid out? Tell me below.