Car Repair Insurance in Nigeria: All You Need Know

Does your car have protection if it breaks down? Cars are complicated and can easily get problems. Big repairs can cost a lot of money. This extra cost can be difficult for many Nigerian families. But there is something called car repair insurance that can help.

Car repair insurance helps to pay for fixing many mechanical and electrical problems in your car. It pays the repair shop directly so you don’t have to stress. This insurance helps all kinds of car owners in Nigeria – young people, working class families, businesses and more. Without it, any serious issue like engine failure can become a disaster.

This article will explain everything you need to know about car repair insurance in simple terms. You will understand what it covers, why you need it, how much it costs and where to buy it. You will also know important questions to ask the seller. This will help you decide if you should get coverage to protect your car.

WHAT IS CAR REPAIR INSURANCE?

Car repair insurance is a type of car insurance policy that covers the cost of repairs in the event your vehicle breaks down. It provides coverage for both mechanical and electrical repairs needed due to a sudden failure of parts or systems rather than just from a collision. Essentially, it protects you from expensive repair bills so you can keep your car running smoothly.

WHY YOU NEED CAR REPAIR INSURANCE IN NIGERIA

Car maintenance and unexpected repairs can be very expensive, especially with the complex computerized systems in modern vehicles. Without repair coverage, you may end up paying thousands of naira to fix major problems like engine or transmission failure. Some key reasons why car repair insurance is important include:

• Protects you from expensive repair costs: One major repair can cost more than your annual car repair insurance premium. Policies cover expensive repairs related to mechanical and electrical breakdowns that would otherwise come out of your pocket.
• Provides convenient repairs: Many car repair insurance plans allow you to take your car to any licensed mechanic shop of your choice instead of only a network of approved repair shops. This removes the stress of finding a good repairer around you.
• Enables preventative maintenance: Some car repair insurance policies offer additional preventative maintenance benefits that allow you to do oil changes, tune ups and checks based on your manufacturer’s recommendations to avoid breakdowns.

WHAT DOES CAR REPAIR INSURANCE COVER?

Car repair insurance generally covers the costs associated with any mechanical or electrical faults and failures due to the sudden breakdown of vehicle components. Here are some common examples of covered repairs:

• Engine and transmission: Covers failures of internally lubricated parts as well as problems with gaskets, seals and bearings.
• Electrical systems: Covers failures in factory-installed electronic components like alternators, starters, sensors, infotainment systems, and others.
• Brakes: Covers brake pads, shoes, rotors, drums, master cylinders, and related hardware needing replacement.
• Steering and suspension: Covers wheel bearings, power steering pump and rack, shock absorbers, control arm bushings, ball joints.
• Air conditioning: Covers compressor, condenser and other A/C related parts.
• Hybrid/electric vehicles: Covers failures of hybrid battery packs, electric motors, charging systems and related electronic components.
• Miscellaneous: Hoses, belts, seals and gaskets.

HOW CAR REPAIR INSURANCE WORKS

Car repair insurance is usually offered as either an add-on to your regular car insurance policy or as a standalone coverage. The basic process works like this:

1. You purchase a car repair insurance policy and pay premiums based on factors like your vehicle’s make and model.
2. When your car has a mechanical or electrical breakdown, you pay the policy’s deductible (for example ₦50,000) and take it to a licensed repair facility.
3. The repair shop diagnoses the issue, verifies if it’s covered by your policy and repairs your vehicle.
4. You authorize the claims process, the insurer pays the shop directly for all covered repairs minus your deductible.
5. Car repair insurance also covers rental cars, towing and other associated costs within specified limits.

TYPES OF CAR REPAIR INSURANCE POLICIES

There are two broad types of car repair insurance policies in Nigeria:

• MECHANICAL BREAKDOWN INSURANCE (MBI)

MBI covers failures due to defects in materials and workmanship in factory-installed parts and also wear-and-tear parts like hoses, belts, brakes etc. MBI policies tend to be the most comprehensive.

• STATED COMPONENT COVERAGE

This covers only specifically listed parts associated with larger assemblies like the engine, transmission and electronics. The coverage is less extensive than an MBI policy but premiums are lower.

TIPS FOR BUYING CAR REPAIR INSURANCE IN NIGERIA

Here are useful tips on getting a good car repair insurance deal:

• Compare quotes between insurers and look for discounts.
• Opt for higher deductibles to reduce premiums.
• Pick comprehensive MBI coverage for old or high-mileage vehicles.
• Choose stated component plans for new or low-mileage cars.
• Ask about preventative maintenance provisions.
• Inquire concerning approved repairer facilities.
• Read policy terms to avoid coverage gaps or exclusions.

FAQ’S ABOUT CAR REPAIR INSURANCE IN NIGERIA

Here are answers to common questions about car repair insurance in the country:

DOES CAR REPAIR INSURANCE COVER REGULAR MAINTENANCE?

Generally no, but some policies include basic preventative maintenance provisions related to oil changes, tune ups etc. Based on your car’s age and mileage.

IS THERE A WAITING PERIOD BEFORE MAKING A REPAIR CLAIM?

Yes, most providers impose a 30-day or 90-day waiting period from when you purchase the policy before claims can begin. This protects against pre-existing conditions.

DO CAR WARRANTIES MAKE REPAIR INSURANCE UNNECESSARY?

While warranties cover defects in the first few years, repair insurance protects against mechanical breakdowns in older cars beyond the warranty period or mileage limits. The coverages can complement each other.

CAN REPAIR INSURANCE BE PURCHASED FOR OLD OR HIGH MILEAGE CARS?

Yes, repair insurers provide quotes based on the make, model and condition of cars. Older or high mileage cars will attract higher premiums but can still get coverage.

WILL A CAR REPAIR INSURER PROVIDE A COURTESY VEHICLE?

The option of short-term rental car reimbursement for covered repairs depends on your chosen policy. Some basic policies will not include it while high-end plans reimburse courtesy car rental expenses.

CONCLUSION

Overall, car repair insurance is invaluable protection against costly repairs that can run into hundreds of thousands of naira.

For car owners in Nigeria seeking financial security and peace of mind, having a repair coverage plan is recommended.

Comparing quotes and reading the fine prints before buying can help get a good policy that covers your repair vulnerabilities.