5 Categories of Car Insurance Policies in Nigeria
It is one thing to buy a car and it is another thing to insure your car against loss. In this article, we would look at all the car insurance policies available for vehicles in Nigeria and the one(s) that would be the best suit you. Please note that having your car insured is like having a screen-guide placed on your mobile phone’s screen to prevent or reduce damage.
In the case of a fall, your phone is limited to the rate at which it would damage, and there’s even a possible no-damage guarantee simply because of the screen guide. The same applies to an Insured Vehicle, in the case of accident, theft, fire, death and other eventualities, your auto insurance coverage remains the only guaranteed best protection you have while driving your vehicles.
Thus, car insurance is an agreement between you and the car insurance company that protects you against loss (financially) when there is an accident or theft. In exchange for this protection, the Insurance Companies require you to pay a deductible insurance premium (which is usually a monthly or annual fee). Usually, your vehicle insurance will provide coverage for the under listed items:
- Property damage coverage– in the case of damages to your vehicle which can be as a result of an accident, fire, falls or even theft.
- Medical expenses coverage – this is coverage for the cost of treating injuries, and sometimes funeral expenses in the case of death.
- Liability coverage – this can limit your responsible to others when they are involved in bodily injuries or damage of properties.
5 Categories of Car Insurance Policies in Nigeria:
#1. Third-party Insurance:
This is the simplest and most basic insurance cover available for vehicles. A vehicle driven without at least a Third-Party Liability insurance stand the risk of facing penalties by the Nigerian road use enforcement authorities.
In most countries of the world, a third-party insurance cover is a compulsory form of insurance for all vehicles worthy to ply the road ways. This car insurance plan refers to protection for a third party (person) in the case of any at-fault injuries, death, and damage to properties involving the ensured vehicle.
That is, if Mr. A. whose vehicle was insured with Third-Party Vehicle Insurance gets into an accident with Mr. B (for which Mr. A is the victim of the accident) and damage is done to Mr. B’s vehicle as well as Mr. A’s vehicle too. Only the Vehicle of Mr. B will be repaired by the Insurance Company.
Of course, one can argue that this form of Insurance policy is worthwhile as it offers financial redemption for an insured vehicles when an incident occurs. Remember, no one can predict the next hour unforeseen events, thus Third-party insurance is like a very good guarantee.
However, note that this policy does not offer cover for the insured vehicle but the recipients. It does not indemnify whether a person who caused the accident is involved in alcohol/drugs or as a result of a driver who’s not legally licensed to drive or use a motorized vehicles in the Nigerian roads.
#2. Own or Collision Damage Cover:
In this car insurance policy, the cost of repairs of your vehicle is covered. It is the exact opposite of the Third-party insurance cover, and only your vehicle is repaired or replaced as the case may be.
This insurance doesn’t cover the treatment of one’s self or the third party involved in the case of an accident but focuses on the redemption of own vehicle as it were before the incident.
Related: Car Emergency Lights You Need to Know for Vehicle Safety
#3. Non-collision Coverage:
This is an auto insurance policy that covers repair or replacement of your vehicle but in the instance of accidental damages that were not due to collision.
The damage could be as a result of natural occurrences such as; floods, theft, storm, debris, fire, etc. However, note that non–collision damages would not count when caused by uncontrollable events such as war, crises or otherwise stated.
#4. Personal Injury Protection:
Personal accident insurance cover targets the treatment of yourself in the case of an accident. It also entails indemnifying the insured, even when it results in death. Thus, as the name implies; it is an insurance cover for the person using the vehicle in the case of an accident.
#5. Comprehensive Car Insurance Coverage:
As the name implies, this auto coverage gives you the highest level of protection from your insurance policy. It includes a comprehensive underwriting for Third-party contents, own vehicle collision damage cover, personal accident cover, and other non-collision damages possible; such as fire, theft, storms, floods, vandalism, etc.
Note, the Comprehensive Vehicle Insurance cover doesn’t include wear and tear of the vehicle; which would indeed happen after a while of usage. It does not include damage as a result of someone without a valid driver’s license. It does not include damage caused by someone under the influence of drugs or alcohol. And does not include damage or loss that can be attributed to war and crises.
Read: How to Know When It’s Time To Buy A New Car
How To Know the Best Car Insurance Policies for Your Vehicles:
For Hire-purchased vehicles:
It is best that if the vehicle isn’t yet yours that you have an Own or Collision Insurance cover, as this will help indemnify your vehicle in the case of damage as a result of roadside accident caused by another motorist.
For all Vehicles in Nigeria:
In Nigeria, a vehicle must have at least the Third-party automobile Insurance cover stipulated by law for all vehicles. It covers an individual or company against a loss caused by third party.
For the best of Insurance:
Comprehensive car insurance is the best form of insurance coverage in the country. It can indemnify the driver, the vehicle and insured a whole lot of items; ranging from the Third-party, Own or Collision, Personal Accident insurance coverage, etc.
Wrapping up: Best Car Insurance Policies in Nigeria
The above listed are the five types of car insurance covers we have in Nigeria. We also explained the form of cover that is best for each situation in the later paragraphs. Please Contact our insurance brokers or insurance agents for free auto insurance quote or more if you’re interested in knowing the best fit for your vehicle.
In this part of the world, people don’t take car insurance policies seriously till they encounter some challenges while driving on the highways. One of the best pieces of advice we can give our audience is to buy comprehensive car insurance for their cars; and from the reliable insurance providers at affordable rates too.
It is no longer a crucial news that a good vehicle insurance police can always be there to save you and your family when you needed it the most. You never can tell when and where about a future occurrence. So, having the perfect insurance coverage is the best way to go in today’s busy roads. Now you know the best car insurance policies in Nigeria for your uninsured vehicles…right? We hope this article helped!
Photo credit: worldfinancialreview.com
Related: How to Buy a Car in Nigeria with Bad Credit