In Nigeria, millions of car owners and users take the risk of plying the roads without seeing any need to insure their vehicles; these same individuals will be seen fighting with other drivers when they are involved in a mild accident. People seek to protect their cars against uncertainties, but many of them do not know how to go about it; the many others who have an insurance document take it simply as a paper in their vehicle particulars.
The Nigerian Insurance Act 2003 made driving without motor insurance in Nigeria a criminal offense with a penalty of imprisonment for a year or a fine of ₦250,000 or both. This law drove most Nigerians to purchase a motor insurance without having a full understanding of what it should cover and the various classes of vehicle insurance available. A good understanding of motor insurance by car users will help to settle roadside arguments after a car collision or damage.
There are three parties considered to be involved in an insurance agreement and these include;
The first-party: This is the person purchasing the insurance form, also known as the insured.
The second-party: This is referred to the auto insurance company selling the insurance.
The third-party: The unknown person involved in the collision.
Reasons to buy Motor Insurance in Nigeria
Let us pay attention to these reasons in order to understand the need for motor insurance in Nigeria;
It is a Law in Nigeria to have a motor insurance as stated in the Insurance Act of 2003
The insured will have some peace of mind from knowing that their car is covered from uncertainties
It protects the amount of investment you made in your vehicle
It functions as health insurance in the situation of a road accident
The insurance will cover vehicle damage from an unplanned event
The vehicle owner is protected against liability lawsuits
Vehicles could be repaired or replaced after an accident
It helps to prevent bankruptcy as a result of an accident
Some went bankrupt after an accident; buy motor insurance to not let it happen to you
Types of Motor insurance in Nigeria
This section clearly explains the types of auto insurance that are available in Nigeria to help car owners understand and decide which insurance cover is best for their vehicle. Below are the types of insurance and their benefits;
1. Third-Party Car Insurance
This insurance is compulsory under Nigerian Insurance law for all car owners, it covers for the damages made by the vehicle of the insured on the vehicle of the third party. The insured is protected from legal liability for the third party property damage, disability or death.
2. Liability Insurance cover
This is referred to as the "act only car cover". It is a kind of third party cover that provides protection for legal liability on the third party accidental damage not minding if the insured was at fault or not.
3. Third-party, Fire and Theft car Insurance cover
This insurance covers not only the third party and their properties in the event of damage in an accident caused by the insured, but also insures the first party’s car against theft, damage by fire or attempted theft. This motor insurance in Nigeria is the closest to comprehensive car insurance which we will see next.
4. Comprehensive Car Insurance
This insurance is classified as the best insurance coverages, as it takes care of the car repairs or replacement for the parties involved in any event of car damage that is as a result of car collision, fire, theft, damage as a result of attempted theft and vandalism, falling objects, civil disturbance or damage done by animals. This insurance cover has many benefits compared to that of the third party insurance, and this insurance policy has the highest premium.
>>> Applying for motor insurance in Nigeria will require sufficient car documents, read here: Detailed guidelines for Vehicle Particulars Renewal in Nigeria
Motor Insurance Companies in Nigeria
Below is the list of well-known motor insurance companies in Nigeria.
1. AIICO Insurance company Plc.
This insurance company insures vehicles, properties, plants, machinery, office, stock household goods against damage by fire, explosion or natural perils.
Address: Plot PC 12 Churchgate St, Victoria Island, Lagos
Phone: 0700 24426 68228
The insurance company with a wide reach across the nation
2. Leadway Assurance Company Limited.
The Leadways is an auto insurance company that provides a lot of benefits in any level of insurance cover. It covers both the comprehensive and third party insurance; find their contact information below.
Address: 121/123 Funso Williams Avenue, Iponri Surulere, Lagos
The insurance cover by this company tends to lead the way in protecting your car
3. Cornerstone Insurance Company
Cornerstone insurance company is known as one of the leading insurance companies in Nigeria, incorporated in July 1991 as a private company and became a public limited liability in 1997.
Address: 6B Adeniyi Jones Ave, Ikeja
Phone: 0700 26763 778663
The insurance company that shows strength to protect your assets
4. Adic Insurance
Adic insurance is known to offer one of the best motor insurance packages which covers comprehensive motor policies, third party fire, and theft, third party only, with over twenty years experience. Their insurance company covers another area that includes life and pension insurance, oil and energy, liability, money insurance, etc.
Address: 2 Elsie Femi Pearse Street, Victoria Island, Lagos
Allow Adic Insurance Company to protect your car with their quality experience
5. A&G Insurance company
A&G is an old insurance company in Nigeria and so seen as the best in Africa with more than twenty years of experience. This company is known to offer all types of motor insurance at an affordable price, and they commenced business in January 1989.
Address: 142 Oba Akran Avenue, Ikeja Lagos State Nigeria.
A&G Insurance company brings so much protection for your car
Tips to buy the best car insurance in Nigeria
The following guide will get the car owner a perfect motor insurance in Nigeria, and it is important because there are so many fraudulent agents out there.
Do basic research on the Internet about some insurance companies in Nigeria.
Pick a particular insurance company of your choice, some are mentioned above.
Choose the type and class of motor Insurance you prefer.
Fill in the forms required; these include the KYC, Vehicle Proposal and Vehicle Physical Inspection forms.
Select a duration and buy the plan.
Confirm the authenticity of your motor insurance in Nigeria by dialing *565*11# on any mobile phone and follow the guides.
Things will not be covered by Motor Insurance in Nigeria
The first-party or insured should not expect a cover from the insurance company if any of the following describes the situation of their case.
General body aging
Mechanical faults or electrical component failure that needs maintenance
Damage if the driver is under alcohol influence
Tire or tube damage unless the damage occurred during the accident
Vehicle damage or loss outside Nigeria will not be covered unless it has an extended policy
Damage by a person driving without a valid driver's license
The above article has stated all you need to about Auto insurance and the level of cover provided by the different types of motor insurance in Nigeria. There are mostly some discounts by selected insurance companies to increase their customer base and loyalty. Drivers, car owners and aspiring car owners can always visit Naijauto.com to have a clear understanding of car insurance in Nigeria.