Predictors of the uptake of comprehensive car insurance among private car owners in Uganda

Abstract

The major objective of this research was to determine the factors that influence uptake of motor comprehensive car insurance in Uganda. Primary data was used and a sample size of 96 respondents was selected and interviewed. Entry of data and analysis were done using Microsoft Excel and STATA software. Analysis was done using frequency tables, statistical tests and binary logistic regression formula.

In the study, majority of the respondents were male(61.46%), married(62.50%), aged 30-39(43.75%), tertiary (81.25%), salaried(73.59%), had saloon model(58.33%),second-hand(88.54%), 0-4 years(79.17%), involved in an accident(53.13%),did not have a motor comprehensive car policy(79.17%), understood the difference between third-party and motor comprehensive car insurance(67.71%), didn’t find the policy affordable(65.63%). In the bivariate analysis, it was found that marital status, education level, car model, state of the vehicle at first, accident record, understanding the difference between motor comprehensive and third- party insurance and affordability of comprehensive car insurance were relatively significant to the study(p<0.1). The following variables were insignificant marital status; gender, age, employment status, time period. The significant variables were later taken to the third stage of analysis. At the multivariate stage, it was found that marital status, education level, car model, accident record, understanding the difference between motor comprehensive and third- party insurance and affordability of comprehensive car insurance were significant to the study(p<0.05).

There is need for sensitization to the public about the advantages of comprehensive motor insurance given the many road accidents that occur daily in Uganda. This insurance scheme can benefit many.