What is Car Insurance, how does it work, and how can I obtain one for my car? In this post, you will learn all of that.
Most times we tend to make plans about our life and try as much as we can to ensure only good things come our way. But there is one thing we need to know and that is life is full of uncertainties. That is why it is very important to protect the things dear to us – in the event of unpredictable circumstances or events that might occur.
In one way or the other, we must have heard about insurance, what it entails, and also the importance of having insurance either for your home, car, property, or even for yourself as an individual.
Insurance is very important, It could be said that insurance should be considered one of life’s necessities — because of what it tends to achieve for an individual, but it’s quite unfortunate that the majority of Nigerians haven’t fully grasped this subject. Mainly because they have a wrong perception about it, as most of them consider it unnecessary expenses to add to their current budget.
The reason for this might be that Nigerians haven’t been given full enlightenment on the subject of insurance, and how important it is to have insurance to protect the things dear to them. It is also important to note that Insurance in Nigeria has proven to perform way better, and has most importantly helped lots of individuals bounce back from heavy losses.
There are various kinds of insurance policies ranging from Life insurance, Health insurance, and Property insurance, to Home insurance, Car insurance e.t.c. In Nigeria, we have quite a number of reliable and competent insurance companies that can help provide the service you will need in order for you to achieve your target goals.
In this article, our main focus will be on car insurance. I will talk about what insurance is, What it is, types of car insurance, the importance of owning a car insurance e.t.c.
Insurance Overview
Insurance is a form of managing risk. It is a backup you set up to protect yourself against financial losses as a result of unexpected circumstances that may occur.
In insurance, you employ the service of a party known as the insurer and pay an agreed percentage for their service, known as premium, and as a result, the insurer then protects and safeguards you against loss, theft, or damage that may occur as the results of an accident.
There are various types of insurance and some of them include:
- Home Insurance
- Property Insurance
- Car Insurance
- Health Insurance
- Life Insurance e.t.c
All About Car Insurance In Nigeria
Car insurance could also be referred to as Auto insurance, This is a type of insurance policy used for cars, motorcycles, trucks e.t.c which protects you against financial losses — by providing you cover for any bodily damage, injury, or harm done to a third party or their properties. And also to you and your vehicle in the event of an accident.
There is three main coverage usually provided and these include:
- Property coverage
- Medical expenses coverage
- Liability coverage
If you are a car owner or intend to be one, you might have an idea of what car insurance is all about. It’s no longer news anymore in Nigeria that every car owner is mandated to have at least one type of car insurance in their possession.
Types of Car insurance in Nigeria
There are four major types of car insurance in Nigeria and this service is offered by most insurance companies in the country.
1. Third-party, fire, and Theft Car Insurance
This is a type of insurance that covers any damage caused to the vehicle or property of the third party involved. It also provides protection if the insured car is stolen or damaged by fire. In this insurance, both the insured and third party are covered during an accident, but this insurance is limited to only damages that occur as a result of an accident.
2. Third Party Only Car Insurance Cover
This type of insurance provides full cover for any loss that may occur to only the third-party vehicles or properties. The insured car is not involved in this case, as only the third party involved benefits from this type of insurance.
3. Comprehensive Car Insurance Cover.
This type of car insurance is known as the best form of insurance as it provides protection against a wide range of uncertainties which includes accidents, theft, fire, vandalism e.t.c that may take place in the event of an accident — for both the insured and the third party. Both parties benefit from this type of insurance, but it is very expensive.
4. Acts Only Car Insurance Cover
It is also known as a motor third-party insurance policy. It’s this type of insurance that the law of Nigeria made mandatory for all car owners to at least have. It is the cheapest form of insurance an individual can have for his car. It only provides protection to the third party for any damage caused by the insured. One disadvantage of this type of car insurance is that this insurance is limited to only a car crash or collision-infused damage that occurs during an accident.
Importance Of Having A Car Insurance
- It Is Mandated By Law
The constitution of Nigeria has made it compulsory for all car owners to have at least one insurance policy. So, as long as you have a car, you must have car insurance as part of your possession — as it’s illegal to drive without your car insurance.
- It Provides Protection From Financial Loss
One major advantage of having car insurance is that it prevents an individual from experiencing financial loss in the event of an accident that may occur.
- It Helps You To Handle Emergency Situation Easily
In the event of an accident, it enables you to handle it easily as it makes things simplified for you.
- It Puts You At Ease
Having insurance for your car takes the burden off you and gives you peace of mind, knowing fully well that you have a form of protection. Both parties involved are well protected from any damage or losses that may have occurred in the event of the accident. So it is beneficial to both parties, but this is dependent on the type of insurance that is being used.
Car insurance protects the passengers involved in an accident, if you caused an accident and other people get hurt, your insurance will still cover it.
It covers every health damage that occurs in an accident for both the insured and the third party.
Car Insurance Companies In Nigeria
There are various kinds of car insurance companies in Nigeria that offers the services we stated above. You only need to do research to know the best one that offers the kind of insurance you want for your car. See the Best Car Insurance Company In Nigeria
Some popular car insurance companies in Nigeria include:
- Alliance Insurance Company
- Nigeria Sovereign Investment Authority (NSIA) Assurance.
- Mutual Benefits Insurance
- Law Union And Rock Car insurance
- AIICO Insurance American International
- Leadway Assurance
- Zenith Assurance
- Custodian Car Insurance
- FBN General Insurance
- Cornerstone Insurance
- Consolidated Hallmark Insurance
- Old Mutual Nigeria
- AXA Mansard Insurance Plc
Conclusion
Car insurance is very important to have in Nigeria. Due to the country’s present situation, it’s advisable to have at least one car insurance in your possession. You also need to ensure that you keep your insurance alive by renewing your car insurance whenever it is due — because if or when the day it is needed comes, you will be glad you did it.
