WHAT TO KNOW WHEN BUYING VEHICLE/CAR INSURANCE IN NIGERIA
Many Nigerians stop purchasing car insurance because they believe it is an unnecessary expenditure. However, Car Insurance, on the other hand, is required by law and provides invaluable cover, much like every other type of insurance.
It’s not just about the law; just as some vehicle recovery option gives you peace of mind, car insurance alleviates the anxiety that fraud or an accident will financially destroy you.
Insurance is intended to place you back in the role you were in prior to the loss or injury. This can be achieved in two ways: financially, where you obtain a sum equal to the asset’s cost, or physically, where the asset is replaced or repaired.
You should consider this when contemplating whether or not to buy car insurance: Can you afford to repair your vehicle if it was damaged beyond repair? While you’re thinking about all this, here’s what you need to know about auto/ car insurance in Nigeria.
How To Get Car Insurance In Nigeria
IT’S IMPORTANT TO MAKE PROPER RESEARCH
You will learn more about the different auto insurance firms by searching for Nigerian car insurance.
Check out the National Insurance Commission’s website, naicom.gov.ng, for a full list of the companies that have been registered in Nigeria – (NAICOM).
The following are a few of these companies that offer car insurance in Nigeria:
- Old Mutual Nigeria
- Zenith Insurance Plc
- Cornerstone Insurance
- AIICO Insurance Plc
- AXA Mansard Insurance Plc
- Consolidated Hallmark Insurance
- Leadway Assurance Plc
- FBN General Insurance
Car Insurance in Nigeria
CHOOSE THE ONE THAT BEST SUITS YOUR TASTE AND BUDGET
After you’ve done your homework, you’ll need to figure out which insurance provider is right for you. The following are some of the things to think about car insurance in Nigeria:
- What level of protection do you require?
- Which insurance firm provides the highest long-term returns?
- Is the firm well-known, and what is its track record?
- Is there a way to get your money back if you don’t claim it?
- Are you willing to combine insurance options, such as car and motorcycle coverage?
- Can you get a discount if you insure your car, house, and buildings?
- Are they able to provide vehicle monitoring and telematics, as well as premium discounts?
GET INVOLVED WITH THE MANAGEMENT
You must first complete the following forms before getting insurance:
- Application for Motor Proposal
- KYC Form for Auto Insurance Physical Inspection
When you fill out these forms, you will be given two choices for car insurance.
COVERAGE BY A THIRD PARTY
This is the most common form of car insurance in Nigeria, as it covers injury from injuries, death, and damage to property that does not belong to you. You could be paid an annual premium of N5,000 to N10,000 depending on the type of vehicle you own.
INSURANCE THAT IS ALL-INCLUSIVE [COMPREHENSIVE]
Comprehensive insurance, as the name indicates, covers all risks associated with owning and running a car. This policy isn’t needed, but it’s a good idea if you have a new car or one that you’re still paying for. This policy includes failure or harm to insured vehicles as a result of the following:
- Accidental damage
- A collision
In addition to Car Insurance In Nigeria, there is a legal responsibility for:
- If You or your passengers were injured.
- Damage to the third parties’ property
VERIFY If YOUR POLICY IS LEGITIMATE.
If you’ve purchased a car insurance policy in Nigeria, the insurance agent will issue you a certificate detailing your coverage. However, you must first check the policy’s validity, which you can do by going to www.askniid.org and following the instructions there.
After you’ve entered your policy number, vehicle number, and vehicle type, no details will show if your policy is false.