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.