Assessing the factors influencing uptake of comprehensive motor insurance for high value vehicles
Abstract
The objective of the study was to assess factors influencing uptake of comprehensive among high
value car owners. Primary data was obtained from respondents in downtown Kampala. This
quantitative cross-sectional study involved distribution of 113 sets of questionnaires to respondents
who were both employed and self-employed in downtown Kampala. Univariate analysis, cross
tabulations and binomial logistic regression were performed on the variables in the study using
STATA.
In the univariate analysis, slightly more than half of the respondents (54.02%) were between 51-
65, Majority (47.13%) had up to secondary level of education. Most of the respondents (52.87%)
owned SUVs, (40.23%) owned Toyotas. A large portion (29.55%) owned vehicles which costed
between 50 million – 75 million. A small portion (37.93%) had comprehensive insurance, most of
the respondents (42.42%) had a difficult claim experience. More than half (57.58%) changed
insurers and many (36.84%) changed because of more coverage.
In bivariate analysis, the variables gender, age, education, type of vehicle, vehicle brand, cost of
vehicle, premium, accident experience, and claim experience were seen to have a significant effect
on the uptake of motor comprehensive insurance because their p values were less than 0.1.
In the multivariate analysis, owners aged 51 and above were twice more likely (OR = 2.014) to
take up comprehensive insurance as well as those with tertiary education compared to those with
none. Owners of SUVs were four times more likely (OR= 4.712) to take comprehensive insurance
compared to other types. Owners of vehicles ranging between 125Million – 150M were eight times
more likely (OR = 8.633) to take it up than those with 50 million to 75Million. Those that had
difficult claim experience were 70% less likely (OR = 0.300) to take up comprehensive insurance
compared to those with easy claim experience (p<0.05).
The uptake of comprehensive motor insurance is very low in Uganda even among high value
vehicle owners who believed to afford the premiums. The findings of this study show that there is
need for sensitization and also marketing campaigns should be geared towards their target
audience.