3 Reasons why you need car Insurance in Nigeria

05/13/2020

Posted by: Henry Egan

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When it comes to protecting important investments, you should be one of them. Thus, taking a good insurance deal for your car is a must.

“God forbid Bad Things, It is not my Portion in Jesus' mighty name”. I’m very certain a good number of Nigerians will absolutely relate with this line, Lol.  We are very religious people in Nigeria and that is why we are always in the belief that no ill will befall us. But truth is, when you take out a considerable amount of cash to invest in a property, it is only logical that you find ways to protect yourself against losing the money you’ve invested. That’s why big businesses with billions of invested cash always make sure they are completely protected against the risk of losing their investments. For instance, you buy a brand new car for ₦15 million, it is a wise course to invest a little more in protecting this vehicle against possible future damage as a result of traffic collisions. This post will help you learn about the importance of having Car Insurance in Nigeria.

a-car-accident-on-the-road

Car Insurance helps you mitigate the financial challenges when an accident happens

What is car insurance?

That line of protection against the risk of heavy financial losses is what we generally refer to as Insurance. The Oxford Dictionary defines Insurance as “an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium”. Therefore, if you look for ways to protect yourself and your properties from the financial losses that may result from a likely future accident, damage, theft, or any uncertain loss, then you are insuring against those losses.

Some companies take it on themselves to help you manage this risk for a fee. These companies are what we know as Insurance companies and the payment they take from you to help manage against these risks is called the Premium. So by now, I can confidently say that you guys already have a clear idea of what Vehicle insurance is. Still, let’s take a close look at what vehicle insurance involves.

Car Insurance in Nigeria

Vehicle insurance as the name implies involves the insurance policy you take to protect yourself against any financial burden that might result from damage to your car either as a result of an accident, vandalism, or theft. In Nigeria, there are mainly two forms of vehicle insurance policies offered by insurance companies as a cover for cars. These two include third party insurance cover and the comprehensive insurance policy.

I’m sure that most are very much conversant with the third party insurance especially when you are processing your vehicle license or when you are trying to renew your vehicle particulars, you will compulsorily be made to take the third party vehicle insurance cover. That third party types of car insurance in Nigeria will only cover the third party, which actually is the vehicle that belongs to the other driver. So in an event that you crash into someone’s car and you are at fault, the third party vehicle insurance will cover the cost of repairs to the other driver’s car you damaged but will not cover the cost of repairs for your own vehicle. 

car-accident-scene

Car Insurance helps cover accident repair costs

On the other hand, the comprehensive car insurance in Nigeria will cover the cost of repairs to your car and that of the third party in the event of a crash. This policy is more encompassing but is also way more expensive.

Most third party insurance Premiums offered across the country generally range from ₦5,000 since the insurance companies generally wedge the risk at a maximum of ₦50,000. But you could expect that the premium cost of comprehensive car insurance in Nigeria will be way higher and generally depends on the risk amount you intend to insure against.

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3 Reasons why you need car insurance in Nigeria

1. The Terrible state of Nigerian Roads

When you own a car in a country where the road networks are just terrible and absolutely deplorable, a country where you can’t drive for 5 minutes without having to slow down to avoid a terribly large pothole, and a country where there are about 12 million cars on the road struggling to use the same terrible roads, then you’ll surely not need anyone to advise you on why you should consider taking out an insurance cover for yourself and your car.

Various degrees of accidents have occurred as a result of the deplorable state of our roads. In fact, the Nigerian Bureau of statistics once reported that about 15 people die daily from road accidents mostly occasioned by poor and deplorable road network.

bad-nigerian-roads

Potholes have cause so many vehicle crashes across the country

2. High mental disorder across the population

Nigeria has a population with an extremely large number going about with serious mental health issues. In fact, the World Health Organization believes that one in every four Nigerian suffers from some form of mental health issue. If you do the math, this means that somewhere around 50 million Nigerians are suffering from different forms of mental health issues.

Unfortunately, you as a car owner will have to deal with these people on the road, so you can expect this to be a very tasking job. I remember an incident sometime last year where someone parked his car safely away from the road, but this other guy still crashed into this car. And to highlight how mentally unstable some people are, this guy at fault felt the car was not parked properly, angrily exchanged words with the innocent guy and even went ahead to smash this guy’s headlamps for no just cause. So to mitigate the possible financial losses you may suffer from the possible poor judgment or extreme road rage that this people exhibit, it is wise that you take out vehicle insurance in Nigeria.

The following video just gives you an idea of the level of psychologically unbalanced people on our roads.

Video: Best Road Rage Compilation 2019 People Being Mad

3. Insurance takes care of your financial liabilities in the event of an accident

So if an accident were to occur and you were at fault, it was usually expected that you fixed the car of the other person. This is what the insurance companies call liabilities and these are financial burdens you are expected to meet. So rather than you having to pay for these liabilities from your pocket, the insurance companies will have this covered on your behalf.

Accident-scene

Insurance helps take some of the worries that come with accidents off your shoulders

So depending on the type of car insurance cover you took, the insurance companies will bear the cost of repairing your car, the third party’s car, and the medical bills in case of bodily harm. It is likely that when these unfortunate incidents happen, you might be low on cash or don’t even have any at all, so rather than look for where to borrow, the insurance company will cover these costs or liability on your behalf provided you have a policy in place with them.

>>> This is a fun post, don't learn from this Man who legally changes his gender to save ~₦304 on car insurance annually

Conclusion

After reading this, I’m certain the issue of "how much is car insurance in Nigeria", will not deter you from taking up auto insurance to cover all your cars. Remember it is compulsory and mandatory that you have an insurance cover before you take to the road with your car, if not you're liable to be sued in the event of an accident or damage occurring. 

>>> Visit Naijauto.com for the more car tips and advice by our auto experts.

>>> Other topics: Latest car news updates, Car price lists, Reviews, and Cars for sale.

Henry Egan

Henry Egan

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Henry Egan a poet, essayist, content writer, blogger and technical writer who is willing to read just that last material to develop the best content possible. Henry feels he is more of a new generation writer with a sassy and swanky style. You can be sure you'll get all the facts in and never get bored with his articles.

He has got a flair for technical reviews on automobile and cars. He studied Mechanical Engineering but his first love remains Literary Art.

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