Comprehensive Car Insurance in Nigeria: All You Need Know
A lot of people have always want to know about comprehensive car insurance in Nigeria. This has made us to come up with this article.
Comprehensive car insurance is one of the most important types of auto insurance you can have as a car owner in Nigeria. It provides protection against damage to your car, theft of your car, and also provides third-party liability coverage in case you cause damage to another person’s property while driving.
With the high rate of accidents and car theft in many parts of Nigeria, having a comprehensive policy ensures you have adequate financial coverage and protection at all times.
This article provides an extensive overview of everything you need to know about comprehensive car insurance in Nigeria.
WHAT IS COMPREHENSIVE CAR INSURANCE?
Comprehensive car insurance is a policy that combines coverage for damage to your own car from events like accidents, theft, fire, flood and also covers your liability to third parties for bodily injury or property damage you may cause through driving your car.
A comprehensive policy is the broadest and most extensive type of car insurance available. It protects you and your vehicle financially for events involving both own damage as well as legal liability.
COVERAGE OFFERED UNDER COMPREHENSIVE INSURANCE
A comprehensive policy commonly includes the following protections:
- Accident coverage – This covers repair or replacement costs if your car gets damaged in an accident.
- Theft – Pays you if your car is stolen and not recovered. Sometimes partial theft like stolen car parts is also included.
- Vandalism – Provides coverage if your car suffers malicious damage by others.
- Fire – Repair or replacement costs if your car catches fire.
- Flood damage – Protects against water damage from floods.
- Third Party Liability – Covers injury or property damage you cause to others while driving your car.
- Passenger liability – Protects injured passengers in your car.
ADDITIONAL BENEFITS
Apart from the core coverage above, most comprehensive policies also offer added benefits like:
- Personal accident cover – Provides compensation for injury or death to you or your driver from an accident.
- Emergency medical expenses – Covers medical treatment costs for injuries sustained in an accident.
- Personal belongings loss – Protects items stolen from your car.
- Car key replacement – Covers cost of replacing lost car keys.
- Tyre replacement – Protects against need to change tyres from accidents.
IMPORTANCE OF COMPREHENSIVE CAR INSURANCE IN NIGERIA
There are several compelling reasons to have a comprehensive auto policy in Nigeria including:
- It is required by law – The Nigeria Insurance Act of 2003 mandates every car owner to obtain at least third party liability insurance. Comprehensive insurance meets this legal requirement.
- Protection against accidents – With increasing number of cars coupled with poor driving and roads in parts of Nigeria, accident likelihood is quite high. A comprehensive policy cushions you from potentially huge repair bills and other headaches in such situations.
- Safeguards against theft – Car theft also continues to be a problem. Getting a payout from your insurer makes it easier to handle this loss.
- Peace of mind – The assurance that financial damage from unforeseen events is covered gives you great comfort and peace of mind as you drive around.
- Retain resale value – In case of mishaps, timely repairs restore your car value and resale potential.
- Get support services – Most insurers provide value-added services like emergency roadside assistance to customers.
HOW MUCH DOES COMPREHENSIVE INSURANCE COST IN NIGERIA?
The premium you will pay depends on these key factors generally:
- Vehicle model – Premium is higher for expensive vehicles and luxury models.
- Coverage scope – The wider the protections sought, the more you pay.
- Location – Rates vary across different parts of Nigeria based on crime levels and accident data. It costs more in riskier areas.
- Personal profile – Age, driving experience, claims record etc. Determine premiums also.
While costs differ widely based on these parameters, on average you may pay between 5% to 15% of your vehicle value annually. So for a car valued at ₦5 million, the yearly premium can range from ₦250,000 to ₦750,000 for comprehensive coverage. However, to determine the actual rate you will be charged, get quotes from insurers.
TOP COMPREHENSIVE INSURANCE PROVIDERS IN NIGERIA
Some top insurance companies providing quality and affordably-priced comprehensive motor insurance products in the country include:
- Leadway Assurance
- AXA Mansard
- Zenith General Insurance
- AIICO Insurance
- Cornerstone Insurance
- SUNU Assurances
Do your research across providers before deciding to get the best premiums and service quality.
PROS AND CONS OF COMPREHENSIVE CAR INSURANCE IN NIGERIA
Here are some of the key advantages and disadvantages of comprehensive car insurance in Nigeria:
ADVANTAGES:
- Covers a wide range of incidents – Comprehensive policies protect your car from damage or loss from accidents, theft, vandalism, fire, floods and more. This versatile coverage gives robust protection.
- Covers liability claims – The third party liability component covers any injury or property damage you may cause to others while driving. This is a legal requirement and protects you from potentially huge legal claims.
- Provides additional benefits – Most policies come with extras like personal accident protection, hospital cash, free vehicle repairs and even car hire services in case of accidents.
- Saves long term costs – By helping pay for major car damage and repairs after accidents, it saves the high out-of-pocket costs you’d otherwise incur. This expense can be unaffordable for many Nigerians without insurance.
- Access to repairers – You can get quick, cashless repairs from approved workshops of your insurer.
- Resale value retained – Timely repairs help maintain your car value and resale price.
DRAWBACKS:
- Expensive premiums – Comprehensive insurance attracts the highest premium which could strain your budget. Costs are especially high for expensive cars.
- Risk of underinsurance – If your policy limit is lower than your vehicle value, you bear a share of repair/replacement costs.
- Lots of exclusions – Most damage during drunk-driving, wars, wear and tear are excluded i.e. not covered.
- Chance of claim denial – Insurers may find ways to deny or delay claims on technical reasons frustrating policyholders.
- Frequent renewal needed – You must renew the policy annually. This repeats your cost burden each year.
Overall, while comprehensive insurance requires a higher premium, for most Nigerian motorists, the pros of the extensive coverage and financial protection it delivers against accidents and loss outweigh the cons.
CONCLUSION
We highly recommend getting a comprehensive policy as it provides vital protections for your valued car asset and gives all-round coverage against varied risks motorists face daily in Nigeria.
Ensure you go through policy documents carefully and pick options matching your budget and insurance needs before signing up.
