Best Car Insurance Company In Nigeria
Over the years, insurance policies have played a huge part in safeguarding people against financial loss and more people are getting involved in it. This is to ensure their lives and properties are safeguarded against unforeseen circumstances that may occur. Insurance is diversified as it spreads across all facets of life.
Some areas where one can be insured include car insurance, health insurance,e.t.c. but for this work, we will focus mainly on car insurance and the car insurance companies in Nigeria as well.
No further ado, let’s take a ride.
What Is Insurance?
Insurance is a legal contract between two parties which are the insurance company also called the insurer and the individual also known as the insured where the insurance company compensate the insured for financial loss as a result of unforeseen events that occur in return for the premiums paid by the insured individuals.
Insurance simply put is a way or means of protection from financial loss and the amount you pay for this arrangement is called the premium.
What Is An Insurance Company?
An insurance company simply put is a company that provides a wide range of insurance policies that will ensure individuals and businesses are protected against the risk of financial losses that may incur in exchange for regular payments made by the individual or business called PREMIUM.
The role of insurance companies is to help their customers manage risks.
Importance And Benefits Of Insurance
- Having an insurance company provides peace of mind.
- It promotes risk control
- It promotes economic growth
- It ensures the distribution of risks
- It helps get loans easily
- It inculcates saving habits
- It provides tax benefits
Vehicle insurance means insurance for cars, trucks, motorcycles and other road vehicles and it is used to provide financial protection against bodily damage that might occur. It is mandatory to have car insurance in Nigeria.
Types Of Car Insurance Policies In Nigeria
There are two types of car insurance companies namely,
Third-Party Auto Insurance
This is the most popular insurance policy in Nigeria. This policy only benefits the third party involved as long as such an individual is not responsible for the damage. it covers damages and loss of belongings of any of the third parties involved and this insurance policy is compulsory in Nigeria.
Comprehensive Auto Insurance
Comprehensive auto insurance is not mandatory in Nigeria and it is not very popular. Comprehensive auto insurance gives all-around coverage for the victim involved. Simply put, it covers the cost of your car when stolen or damaged and also covers the cost of third party coverage. This is the best but not so used insurance policy in Nigeria as all parties involved are compensated.
Best Car Insurance Companies In Nigeria
When it comes to vehicle insurance companies in Nigeria there is a lot but for this article, we narrow it down to 10 top car insurance companies in Nigeria.
1. Alliance Insurance Company
The alliance insurance company is one of the best and most affordable car insurance companies in Nigeria. They offer three plans which include standard, classic and premium plans for their clients depending on the kind of services the client involves wants. One of the benefits of Alliance insurance company is that they give a 15% discount for premium plan subscribers and also 15% of your premium as cash back after 2 years with no claim.
2. Axa Mansard Car Insurance
Axa Mansard is an award-winning insurer with premium services. They have different motor insurance plans that are right for you no matter your financial capability.
Axa Mansard provides different packages of motor insurers and their plans include:
- Autoflex: This is a customizable and flexible motor policy that they provide to help clients make big savings on their motor insurance premiums.
- AutoPlus: This is comprehensive car insurance that covers you from financial loss resulting from risks such as accidents, robbery, flooding, fire e.t.c.This car insurance also provides you with a courtesy car while your car is being repaired or replaced.
- AutoGo: With this plan, you can buy your third-party motor insurance and get your certificate instantly.
The three different car insurance plans cover third-party property damage, third-party bodily injury, theft, fire damage to the insured vehicle, accidental damage, free vehicle tracker e.t.c.
3. Aiico Insurance Plc
AIICO is an abbreviation for ‘ American International insurance Company’ and it was founded in 1963. This is one of the best, oldest and most affordable insurance companies in Nigeria and they cover different types of automobiles for both private and commercial uses.
Their key business lines are Life insurance and special risks, Health insurance and special risks, Health insurance and Asset management and their car insurance covers different categories of people such as Private vehicle owners, multiple family owners, Taxi owners, Bus owners, Delivery Vehicles and commercial fleets.
4. Industrial And General Car Insurance
It was incorporated as a private limited liability company on 31 October 1991 but it was then registered again as a public limited liability company in 2007.
Their car insurance policies cover three main part which includes.
- Third-Party Only: This provides cover for unlimited indemnity for legal liabilities to third parties, liabilities that arise from accidents on third party property damage.
- Third-Party Fire And Theft: This policy provides cover for the third party only for fire and theft including explosion and lightning or attempted theft. Cover for accessories against these perils varies between private cars and other types of policy.
- Comprehensive Insurance Cover: This policy provides both third parties only and third party and theft and a range of additional benefits which includes medical expenses, strike, riot and civil commotion, and free installation of tracking devices for vehicles. E.t.c.
5. Leadway Assurance Plc
They are one of the top-notch insurance companies in Nigeria as they are known for having a reputation for service efficiency and customer reliability. When it comes to lead way assurance PLC, they are not just restricted to car insurance, they also perform certain operations like personal insurance, business insurance, saving and investments, annuities and pensions and auto (third party) insurance.
Leadway as car insurance provides benefits against loss or damage to your insured car as they provide coverage for loss or damage to your car as a result of an accident or mechanical damage/breakdown.
6. Custodian And Allied Car Insurance
Custodian and Allied car insurance is also one of the popular insurance companies in Nigeria and the purpose of this company is to develop, package and deliver innovative insurance products that best satisfy customers’ needs, whilst operating a highly profitable, efficient, resourceful and ethical organisation that will survive well into the future and be a valuable asset to its shareholders. They have a board which comprises individuals that are experienced and have proven track records in their various fields of endeavour.
They have two vehicle insurance policies which include
- Comprehensive Insurance Cover: This insurance policy covers accidental damage, fire, theft, accidental damage to the property of both your vehicle and the third party and also death and bodily injury to the third party.
- Third-Party Fire And Theft Insurance Cover: This insurance policy covers accidental damage to only the third party vehicle.
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7. Zenith Insurance Plc
Zenith Insurance is one of the best car insurance companies in Nigeria. Their auto car insurance covers cars, trucks and motorcycles. They provide a feasible insurance policy that best suits your budget.
Their auto insurance secures you against accidental loss or damage to your vehicle incurred while driven by you or authorized to drive your vehicles, This also relieves you from providing financial or other compensation to third parties harmed through the use of the vehicle, cost of property damage, and expenses incurred from repairing damage to your vehicles.
8. Cornerstone Insurance Plc
Cornerstone insurance, a public limited liability company was incorporated on 26th July 1991, and they are one of the top car insurance companies in Nigeria with an excellent track record. They are the first insurance company to provide customers with an online platform for insurance transactions and were adjudged the ‘best use of technology insurance company’ in 2016, Nigerian Technology Awards.
Their auto insurance policy protects you against financial loss in the event of a car accident and general types of auto insurance coverage include property, liability, medical, uninsured and underinsured motorists, comprehensive and collision coverage
9. FBN General Insurance
FBN is a very popular company in the banking industry in Nigeria and they are also involved in insurance as the FBN General Insurance and their insurance scheme is very satisfying and very reliable.
10. Consolidated Hallmark Insurance
Consolidated hallmark insurance is an auto insurance company that is very professional at delivering its duties. It covers damages to your car including fire and theft plus third party damages.
Taking up a car insurance policy is very important and a necessity as a vehicle owner which is why the Nigerian government made it mandatory for all vehicle owners must have at least a third-party insurance policy and this must be included in their vehicle documentation. This is to safeguard their citizens against financial loss in the event of an unforeseen circumstance that may occur. So know your budget and go to the car insurance company that best suits your need.