Factors Affecting Motor-vehicle Owners’ Adoption of Comprehensive Car Insurance Policy in Tanzania
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Abstract
A comprehensive car insurance policy protects vehicle owners from financial risks and unexpected expenses, yet many car owners do not fully utilize this coverage. This study examined the factors influencing the adoption of comprehensive car insurance among car owners in Tanzania. Guided by the Theory of Planned Behaviour (TPB), data were collected from 218 respondents through mailed and self-administered questionnaires. The analysis was conducted using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SMARTPLS 4.0 software. The results indicate that attitude, subjective norms, perceived behavioural control, and competitive pricing have significant positive effects on car owners’ intention to adopt comprehensive car insurance. Awareness was also found to positively influence both attitude and intention. Furthermore, awareness mediates the relationship between attitude and intention to adopt comprehensive car insurance. The findings suggest that insurance providers should focus on improving customer awareness, offering competitive pricing, and encouraging positive attitudes toward comprehensive coverage. Engaging influential individuals and promoting insurance education through community groups, associations, and educational institutions can further enhance adoption. This study contributes to the literature by providing context-specific insights into the behaviour of Tanzanian car owners, offering practical and policy recommendations to improve the uptake of comprehensive car insurance policies.