Everything you need to know about car insurance in Nigeria

02/24/2020

Posted by: Testimony Olajire

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Buying a car is awesome, but that is not the end of the journey. Car accidents are so common in Nigeria that you need car insurance so that you would not suffer a loss in case anything happens.

Cars-can-be-involved-in-accidents

In Nigeria, cars can be involved in an accident anytime

Life in itself is a risk; there are so many uncertainties that occur in everyone's daily life.

Apart from theft or breakdown, road traffic accidents happen very frequently on our Nigerian roads and it could be due to the carelessness of the driver, other road users or even the bad state of our roads. Irrespective of the reason, it happens!

This is why car insurance in Nigeria is important. With auto insurance, you enter a contract that protects you against financial loss in the advent of a theft or an accident.

In this article, you are going to discover all you need to know in helping you make the right choices. However, you must search for the right insurance provider and we would give you tips to know who to select.

1. Types of car insurance coverage in Nigeria

  • Comprehensive car insurance coverageThis type of insurance covers for cars that get damaged from events like, fires or vandalism. However, it doesn't apply to incidents like theft or car collision.

  • Third-Party Liability coverage - This is also known as, "Act Only" Car insurance or Motor third-party insurance. It covers the insured liability to third party damage or loss of property. The good thing is that it covers damage, even if you are the one at fault.

  • Third-Party, Theft, and Fire car insurance - In this insurance, you get a cover from the damage done to a third party, and also your car. The damage could be a result of fire or theft. Also, you have the liability of file a claim in the case of attempted theft.

From various types of insurance listed above, the best type of insurance that fits you is dependent or your lifestyle. For a person who is not too good at driving, you can pay for insurance that covers for future damages both to your car or a third party.

>>> You can read more here: Common types of car insurance in Nigeria – merits and demerits!

2. Things you need to consider when buying car insurance in Nigeria

The best coverage for you

Before claiming car insurance in Nigeria, you need to decide on the type of coverage that is suitable for you. The type of coverage you choose is, however, based on your individuality and circumstance. Moreover, requirements of insurance for cars vary across companies and locations. It is also important that every driver confirms the details and terms of every insurance before starting on the road.

Every driver should also endeavor to have liability insurance, for we never can tell what incident may happen while driving. In most cases, a lot of drivers have a combination of comprehensive insurance coverage and liability insurance. There are also other coverages you may want to add to your policy, such as Emergency Roadside Services and Gap Insurance.

The deductibles to include in your policy

Deciding on an ideal deductible amount is necessary to avoid unexpected fallback. Especially if you are going for collision coverage and comprehensive insurance, you will have to think through the best deductible amount for you.

>>> Here are How to check your car insurance policy online in Nigeria Insurance Industry Database

Deciding on an insurance company

The decision you make at this stage is a major determinant of the whole insurance thing. It is, however, important that you take enough time to think this through. There are a lot of influences that will interfere with your decision at this moment, regardless, you should be clear on what you want. You can research, and make a selection based on how an insurance company will utilize your credit score. Moreover, your type of car will determine the amount you are covering for, in the insurance. For a person whose car is new and expensive, you should expect that you will pay more for insurance. Also, you can check for customers' comments about the firm. Check if they have a record of good customer service.

Deciding-on-your-insurance-provider

Take your time to decide who your insurance provider would be

Insurance Quotes

You should also make research on the provision various insurance companies will provide for you. Eventually, you will realize that this would help you save more. Measure the quotes the insurance company provides, and compare against others. Some quotes will be extreme, in the sense that, some are rather too cheap or far expensive. When other alternatives are available, it wouldn't bother you much on why some insurance quotes are like that.

Filing a Claim 

As said earlier, car accidents occur often. However, the severity differs. In some cases, it will be minor, while in others, it will require a major change or upgrade. When something happens to your car or it was involved in an accident, you will have to file a claim. The policy you've had on your insurance will determine if filing a claim will be stress-free or costly.

An-insurance-Claim-form

An Insurance claim form

Paying Comprehensive Insurance

Comprehensive coverage is a good option if you are using an old or used car. An old vehicle can't be trusted so much in its functionality. If the car is still in good condition, you should have comprehensive coverage at hand.

What determines the cost of your car insurance

Insurance companies place value on your car based on your car brand, structure, and function. Luxury and expensive brands like BMW and Mercedes usually attract a higher premium compared to other brands. Also, for cars with higher features, you may have to pay more premiums. If your car also has safety features, insurance companies would prefer it. You might also get to pay less for the insurance.

Driver Record

Ensure that you have no issues with the law, as the insurance company will confirm if there had been any previous incidence of misbehavior. Check out more tips here:

In conclusion, no matter how much Davido tells us of Assurance, we still need car insurance in Nigeria!          Naijauto.com is the no.1 platform for car buying and selling, as well as informative car gist for Naija people. Always visit our Car Tips for more posts like this. You can also find Car NewsCar TipsCar Review and Car Prices on our website. Stay tuned!

Testimony Olajire
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Testimony Olajire

Testimony Olajire

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Testimony Olajire is a witty and innovative content writer with Naijauto.com. He creates top quality educative content on automobiles that readers can both relate with and enjoy. He has a keen interest in understanding what lies under the hood of any car, practical driving and safety tips, automobile history and managing automobile-related businesses; all in the Nigerian context.   

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