Car Insurance In Nigeria: Tips on Getting The Right One

Insurance is not often a popular topic in Nigeria. A lot of Nigerians believe they are not rich enough to afford insurance. Some others believe that if they have God, insurance is unnecessary. Funny enough, some people fall into those two categories at the same time. Well, I’m not here to debate whether God owns an insurance company or not. I’m just here to tell you why it is important to ensure your properties, including your cars, and how to get good car insurance for yourself.

Car Insurance In Nigeria

There are two common car insurance terms that are often thrown around in the air. The first is the third party car insurance and the second is the comprehensive car insurance. But what is the difference between them?

Third-Party insurance is the insurance that covers you against damages or loss done to the properties of a third party, while comprehensive car insurance not only covers against third party damages alone, it covers damages done to you and your properties too.

Imagine that Mr. X gently bumps his car against Mr.Y’s car and the very gentle impact causes Mr. Y to catapult out of his car through the windshield, breaking all his toes and his kidneys in the process. That’s a very realistic scenario,  right? Mr. X’s third party insurance only covers all the damages caused to Mr. Y and his car. But if Mr. Y has comprehensive car insurance, the damages are done to his car, Mr. Y’s car and Mr. Y himself are all covered.

In Nigeria, the third party insurance is actually mandated by the law, backed by the third insurance act, and every car that moves on a Nigerian road must have it. The comprehensive insurance, however, isn’t compulsory.

See Also: Top 10 Insurance Companies in Nigeria (2020)

Why Should You Get A Car Insurance In Nigeria

●    Because the law says you should

That should be reason enough to get car insurance. If you don’t have this, you might need to pay some fines at police checkpoints.

If you have car insurance and you get involved in a car accident, you don’t have to worry about covering the damages. All you have to do is to make a report to your insurance company, they validate your claim, and all your damages get covered.

●    It covers you from all forms of car damages or losses

It doesn’t matter if your vehicle gets stolen or damaged. Even if it is something as little as your car’s CD player theft. As long as you can defend your claim, you are covered.

●    Extra goodies

Some insurance policies even pay for a rental car pending the time that you replace or repair your car. Some others have more tantalizing policies.

The list goes on forever. So, tell me. Why wouldn’t you want to get car insurance? Why!?!?

How to get the right car insurance for you

If you’re already planning on getting car insurance for yourself, you are making the right choice. But there is a long list of car insurance companies in Nigeria. Choosing one could be a rather confusing task. I’ll give you tips on how to fish for the car insurance that would be perfect for you in the remaining part of this article.

In the meantime, you should know that the official website to check the list of registered insurance companies in Nigeria is the National Insurance Commission (NAICOM). If someone claims to be a part of an insurance company that isn’t on NAICOM’s list, do not fall for their scam.

Without further ado, how do I get the right car insurance for myself?

How to get a suitable car insurance

●     Get Quotes from different insurance companies and compare

If you are new to this insurance thing, let me. tell you what you do not want to do. You don’t want to just google any insurance company, walk to their doorstep and give them your money. No. This is what you should do instead.

You should first get quotes from as many insurance companies of their insurance policies as your own car. After you get these quotes, put them side by side and compare them to one another. Don’t miss a line of the quotes. Check out what these policies cover and what they don’t. Also, compare their annual raters for these policies. All these might be time taking, of course, but it’s worth the time. Trust me.

●     Fish for discounts

The insurance market is a very competitive one and insurance companies are always offering discounts to attract customers. Take advantage of this. Hunt for as many discounts as you can.

●     Know what you need

In the process of trying to get quotes and all, some insurance companies might try to sell you things you don’t need. They offer you more policies that you don’t need while swinging the discounts back and forth in front of your eyes to distract you from realizing that you don’t need these policies. Make sure you know what insurance policies suit you best and those that don’t. Be smart.

Conclusion

By now, you should understand why it is important that you get car insurance, and that you know how to get the right one for you.