Why Ghana’s Flat-Rate Motor Insurance Fails You and What You Could Be Paying Instead

On a sunny Saturday morning in Accra, Ama, a banker in her early 30s, dusts off her Toyota Vitz. She only drives on weekends, church, market runs, and the occasional trip to visit family. In total, she barely clocks 40 km a week.Meanwhile, her colleague Kwame drives from Kasoa to Accra every single day. He spends hours on the road, weaves through heavy traffic, and has even had two fender benders in the past year.But here’s the twist: under Ghana’s flat-rate motor insurance system, Ama and Kwame pay the same premium.Ama shakes her head every year when renewing: “How is this fair? I barely use my car, yet I’m paying the same as someone always in traffic.”

Why Flat-Rate Insurance Doesn’t Add Up

Ghana’s flat-rate system makes it simple for insurers and drivers, but it comes at a cost:

1. Safe drivers like Ama subsidize risky drivers like Kwame.
2. Careful habits don’t count. No matter how responsibly you drive, you’re still charged the same.
3. The system ignores real risk. Someone on the road for 10 hours a week faces different risks than someone on the road for 50.

It’s like paying the same DSTV bill whether you watch once a week or 24/7.

How the World Is Moving On

Other countries have already rethought this:

• Kenya introduced mileage-based premiums: drive less, pay less.
• South Africa uses telematics apps that reward safe drivers with lower premiums.
• Europe & the US now widely adopt “pay-as-you-drive” models.

Insurance companies there realized: when premiums reflect habits, drivers become safer, and insurers stay healthier. Everyone wins.

What Could Happen in Ghana

Now imagine:

• Ama, who drives 40 km weekly, pays half the premium of Kwame, who drives 400 km.
• Drivers who haven’t had an accident in five years get loyalty discounts.
• Young drivers pay more upfront, but responsible habits lower their costs over time.

That’s what risk-based insurance could look like here.

Are We Getting There?

The NIC’s 2025 premium hike shows regulators are paying attention. Industry experts believe it’s only a matter of time before Ghana transitions to fairer, risk-adjusted pricing.When that day comes, Ama and thousands like her will finally stop footing the bill for riskier drivers.

Flat-rate insurance in Ghana is simple, but it’s not fair. The future? Paying for how you drive, not how someone else does.Want fairer insurance today? Maya gives you smarter ways to get covered.

References

• National Insurance Commission (NIC), Motor Insurance Premium Adjustment, 2025. NIC Ghana
• Ghana News Agency, Insurance industry experts call for risk-based premiums, February 2025.

OECD, Insurance Market Trends Report, 2024.