What is car Insurance?
Car insurance can be defined as legal paperwork between an insurance company and an individual, protecting the person from any kind of loss on their car or vehicle as relating to theft or Accident this can only happen when the individual subscribes to the companies protection plan of insurance giving the company the go-ahead to pay for damages to the said car in future when you have initially registered it under them with a small fee.
Who needs a car Insurance ?
It’s illegal to drive cars without insurance registration in Nigeria though Drivers and car owners ignore this rule of law sometimes leaving them not protected if their cars get stolen or damaged due to accidents or theft. Every car owner needs car insurance for their Vehicles.
what does Vehicle Insurance cover?
Imagine getting your car bashed beyond repair during a race or Parking your car in the street of Lagos and wake-up without seeing your car anymore or your car got burnt due to some electrical issues and its very expensive to replace digging a big hole into your pocket when you try to replace the car. this is when insurance of vehicle is most useful as the insurance company will take full responsibility in Restoring the car or possibly Getting you a new one.
Vehicle insurance covers a car from Theft, fire, accident, this can be a big plus to car owners as they can easily crash their vehicle and walk home with a new one as their property is insured.
Is it a must to have your vehicle insured in Nigeria?
It’s illegal not to have your vehicle insured in Nigeria though the insurance companies in Nigeria is not working very well as their counterparts in other countries, driving uninsured can get your vehicle impounded by the Authorities.
types of car insurance in Nigeria.
- motor third party insurance: This is a Must to have insurance policy in Nigeria and it covers the only the insured vehicle or its owner from accidents or theft and death caused by the Car owner who have the insured vehicle.
- third party only cover Insurance: This insurance policy or takes car of the Third party damages or loss and not the insured vehicle owner, what this means is that if Mr Okechukwu Bought a car and get it insured while driving he went and collide with Mr Thomson, the insurance firm will only replace or repair damages caused by Mr Okechukwu Against Mr Thomson, Leaving Okechukwu the insured-car owner to his Loss but helps him to settle the counterpart involved in the accident.
- comprehensive insurance: This covers both cars involved in the accident even though one is not insured the insurance company will replace the both damages based on their contract with the insurance owner. this is best but though its expensive. the cover could also include legal liability arising from death, property damage or bodily injury to a third party.
how much is comprehensive car insurance in Nigeria?
Comprehensive car insurance undertakes and solves every risk Related to owning a vehicle. for this reason, it’s seen as one of the most expensive insurance policies in Nigeria. the cost of comprehensive insurance on a particular vehicle Exclusively depends on the cost of the vehicle.
In Nigeria, it’s worthy to note that a comprehensive insurance policy before a car owner can get it, most insurance companies charge between 3% to 7% purchased cost of the vehicle yearly. The value placed on the car is the cost of buying the car.
Upon complete purchase of your comprehensive car insurance policy, you will be issued a certificate of insurance. This confirms your eligibility to report a claim in the event of any unforeseen circumstance on the vehicle.