Common types of car insurance in Nigeria – merits and demerits!

04/17/2019

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Cars are at risk of collision on the road and other risks while parked, hence the need for insurance. Here are common types of car insurance in Nigeria with their advantages and disadvantages!

When accidents happen, it is usually not about who is right, but about who is left.

However, if you happen to be involved in any car crash and you are among those that are left, then you need to be thankful, but while you are at it, the thought of who will be liable for the damages is usually the part 2 of the incident.

Though crashes are not the only risk that car owners may be exposed to, they are in most cases why people get their cars insured. For other incidents like fire damage, car theft, damage resulting from attempted theft, and so on. Car owners usually don't take these seriously as they are not compulsory under law.

Naijauto brings you the different types of car insurance in Nigeria and their various merits and demerits. It will be instructive to read through all to find the one that is suitable for you and your car, based on your lifestyle as well as the worth of the car. So, let's have a look together!

1. The act only car cover

This insurance cover is often called the third party liability cover or motor third party insurance. This is what is mandatory under law for all car owners in Nigeria, and it adequately covers the liabilities incurred by the policy buyer for third-party death or disability, damage to third party's property or loss as a result of an act of the policy purchaser.

  • Merits & Demerits

The merit of this plan is that it protects the insured in the event of a crash without recourse to if the insured was the faulty one or not. But it, unfortunately, is limited to car crash or collision induced damage.

2. The comprehensive insurance

This is usually considered the best of the insurance policies as it ensures that the car owner is catered for in the event of damage from both collision and non-collision sources. It also covers car theft, fire, attempted theft resulting in damage, vandalism, and much more.

  • Merits & Demerits

This insurance cover is very advantageous as it offers so many benefits that the third party insurance does not cover. It is also not limited to collision induced damages like third party insurance. However, this is the insurance cover with the most expensive premium.

car-insurance-in-Nigeria

Like its name suggests, the comprehensive insurance covers almost everything but the fee is not cheap at all

3. The third party only cover

This insurance cover only takes care of third-party damages that were caused by the insured. It covers collision and non-collision damages, as well as theft, fire, or loss attributed to the insured party but will not cover any of this for the insured person's car or property.

  • Merits & Demerits

All the advantages of this policy are reaped by the third party for damage, loss, death, and disability for which the insurance purchaser is liable. The disadvantage is that it doesn't cover any damage or loss suffered by the insured.

4. Third party fire and theft cover

This insurance gives the third party as well as the insured the same cover in the event of a collision causing damage, while it is inclusive of redeemable claims in the event of car theft or fire for the insured. In the event of attempted theft resulting in damage, the insured could also make claims

  • Merits & Demerits

The advantage of this is that both the insured and third party are covered during an accident. The insured additionally could make claims for loss, vandalism, fire, or car theft. However, the third party cover is limited to damage resulting from accidents in this package.

Wrapping up!

There you have it, the types of car insurance with their merits and demerits. Naijauto feels this will enable you to make the right choice for your type of vehicle.

>>> If you have already bought car insurance, you can check your data here: [Nigeria Insurance Industry Database] How to check your car insurance policy online

Segun Ogunbiyi

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