Motor vehicle insurance is a legal and financial necessity for every car owner in Uganda. Whether you’re a private driver, commercial transporter, or fleet manager, having valid car insurance protects you from financial losses, legal consequences, and unexpected emergencies on the road.

This 2025 guide provides a full overview of motor insurance in Uganda — including the legal framework, types of cover, leading providers, premium costs, claims processes, and tips for choosing the right policy.

1. Is Motor Insurance Mandatory in Uganda?

Yes. Under Uganda’s Traffic and Road Safety Act (Amended), all motor vehicles must carry valid Third-Party Liability insurance. Driving without insurance is illegal and can result in:

• Fines
• Impounding of the vehicle
• Denial of compensation in the event of an accident
• Criminal charges in cases of serious injury or death

Third-party insurance must be renewed annually and is checked during vehicle inspections, registration, and police stops.

2. Types of Motor Vehicle Insurance in Uganda

There are two main categories of motor insurance available:

2.1 Third-Party Insurance (Compulsory)

• Covers injury or death caused to third parties (e.g. pedestrians, passengers, other drivers)
• Provides compensation for third-party property damage
• Does NOT cover damage to your own vehicle or medical expenses
• Required by law for all vehicle owners

Example: If you hit a pedestrian or another car, third-party insurance pays for their medical bills or vehicle repair — but not yours.

2.2 Comprehensive Insurance (Optional but Recommended)

• Covers everything included in third-party insurance
• Plus damage to your own car (accidents, vandalism, fire, theft)
• Includes protection against natural disasters like floods or hail
• May cover passengers in your car
• Optional add-ons: windscreen cover, towing services, roadside assistance

Best for: New vehicles, commercial fleets, taxis, motorcycles, and long-distance travel

3. Additional Coverage Types

• Third-Party Fire and Theft: Covers fire or theft in addition to third-party liability
• Passenger Liability: Covers legal liability for injuries to passengers
• Political Violence & Terrorism Cover: For high-risk zones or special cargo
• Goods-in-Transit Insurance: For commercial vehicles carrying valuable goods

Ask your insurer which extensions are available for your specific vehicle use.

4. Leading Motor Insurance Providers in Uganda

Several licensed insurers provide motor vehicle insurance. Some of the most trusted include:

• Jubilee Allianz
• UAP Old Mutual
• CIC Africa Uganda
• ICEA Lion General
• Sanlam General
• NIC Holdings
• Phoenix of Uganda
• Britam Insurance
• GoldStar Insurance
• AIG Uganda

Some companies specialize in commercial or fleet insurance, while others offer more digital onboarding options for private vehicles.

5. How Much Does Car Insurance Cost in Uganda?

Motor insurance premiums are influenced by:

• Type of cover (third-party vs. comprehensive)
• Vehicle type and value
• Vehicle age and condition
• Driver history (accidents, claims, etc.)
• Intended use (private, commercial, rideshare, etc.)
• Location and crime risk

Estimated 2025 premium ranges:

Vehicle Type	Third-Party (UGX/year)	Comprehensive (UGX/year)
Private car (sedan)	100,000 – 120,000	2%–4% of vehicle value
Motorcycle (boda)	70,000 – 100,000	1.5%–3.5% of value
Commercial vehicle	200,000 – 500,000+	3%–6% of value
Taxi / Matatu	150,000 – 250,000	Based on route and passenger load

Many insurers now accept mobile money and card payments to make premium collection easier.

6. Where to Buy Motor Insurance

You can purchase insurance through:

• Licensed agents and brokers
• Insurance company branches
• Motor vehicle dealers (bundled with new car purchases)
• Digital platforms and insurtech apps
• Mobile money platforms (for renewing third-party cover)

Always ask for a valid certificate of insurance and make sure your details (vehicle, license plate, chassis number) are correctly recorded.

7. What’s Included in a Comprehensive Policy?

While policies differ slightly by insurer, most comprehensive plans cover:

✔️ Third-party injuries and property damage
✔️ Own vehicle accidental damage
✔️ Theft or burglary
✔️ Fire and explosion
✔️ Natural disasters (floods, hail, storms)
✔️ Windscreen and window breakage
✔️ Towing and roadside assistance (limits apply)
✔️ Passenger and driver personal accident cover

Review the policy schedule and limits. Some benefits may be capped or have deductibles (“excess”).

8. Claims Process – Step-by-Step

If you’re involved in an accident or claimable incident:

1. Ensure everyone is safe and seek medical help if needed
2. Report the incident to the nearest police station and obtain a report
3. Notify your insurance provider within 24–48 hours
4. Provide all required documents:
   • Police report
   • Copy of driving permit
   • Photos of damage
   • Completed claim form
5. Wait for insurer’s inspection and approval
6. Once approved, you’ll be directed to a partner garage or paid the agreed amount

Some insurers now allow digital claim submission via mobile apps.

9. Common Exclusions

Motor insurance does not cover:

• Driving without a valid license or under the influence of alcohol
• Unauthorized drivers
• Using the vehicle for a purpose not stated in the policy (e.g., racing, commercial when covered as private)
• Wear and tear
• Mechanical or electrical breakdowns
• Deliberate damage or fraud

Always read the exclusions and fine print carefully.

10. Tips for Choosing the Right Policy

• Always compare premiums and benefits — don’t just choose the cheapest
• Ask about the insurer’s claims processing speed and reputation
• Check if towing, repairs, and replacement parts are included
• Choose a reputable insurer with a wide garage network
• If using your vehicle for Uber, SafeBoda, or Bolt, ensure commercial use is covered
• Request a quote from at least three providers before making a decision

11. Vehicle Valuation and Underinsurance

Insurers typically base your premium and payout on the vehicle’s market value. Undervaluing your car may lower premiums, but also reduces your compensation in the event of total loss or theft.

To avoid disputes:

• Get an independent valuation when applying for comprehensive insurance
• Review your policy annually and adjust values as needed
• Inform your insurer about modifications or upgrades

12. Digital Innovations in Car Insurance

Uganda’s insurtech sector is improving how car owners buy, renew, and manage insurance:

• Instant third-party cover via USSD or mobile money
• Digital policy documents and e-certificates
• GPS-based tracking and driver scoring
• AI-based claim assessments
• Mobile app reminders for policy renewals and inspections

This is especially valuable for busy urban drivers or fleet operators.

Conclusion

Whether you’re a daily commuter, long-haul driver, or business owner, motor vehicle insurance is your first line of defense against financial loss and legal liability. In 2025, Ugandan car owners have more choices than ever — from low-cost third-party plans to robust digital comprehensive packages.