How Car Insurance in Nigeria Can Pay For Your Car Maintenance

We all know that owning and maintaining a car in Nigeria can be quite expensive. From fueling costs to repairs and regular servicing, drivers have to deal with rising expenses. This is why having a comprehensive car insurance policy is crucial for all Nigerian motorists.

A good car insurance policy does more than just provide coverage in case of accidents or theft. Most policies also include some provisions for covering routine car maintenance and repairs. This can save drivers thousands of naira over the lifetime of their vehicle.

In this article, we will look at how you can leverage your car insurance to pay for maintenance services and essential repairs in Nigeria.

COVERING SCHEDULED SERVICING UNDER CAR INSURANCE

Most automakers recommend periodic servicing of vehicles after running specific mileage milestones. For instance, a typical service schedule for a Honda sedan would be – 1st service at 5,000 km, 2nd service at 10,000 km, 3rd service at 20,000 km and so on.

These scheduled services are meant for oil changes, filter replacements, fluid top-ups, tyre rotations, and general inspections. They ensure that vehicles run smoothly, remain efficient for long and prevent major breakdowns. Car insurance providers acknowledge the importance of these maintenance sessions.

Many comprehensive motor insurance policies bundle routine servicing after fixed intervals under their coverage. For example, a package could include up to 4 scheduled servicing sessions over 2 years. This saves considerable money spent on paying for filters, engine oil, service charges etc. At the authorised service centre.

Typically, lower insurance premiums have fewer or no servicing sessions bundled in. But opting for a slightly higher premium that covers maintenance is usually worth it over a 3 to 5-year policy period.

ANNUAL CAR MAINTENANCE CONTRACTS

Insurance providers also facilitate annual maintenance contracts (AMCs) at their partner garages. Based on your car’s make, variant and age, they customise AMC packages covering regular upkeep for 1 or 2 years. The wide service network allows cashless repairs and servicing across Nigeria.

To illustrate how an AMC works, let’s assume you have a 2013 Toyota Camry insured for ₦300,000. The insurance provider could offer an AMC for around ₦55,000 per year. This AMC through their accredited garage will cover 4 seasonal service schedules per year up to specific limits. Covered maintenance aspects may include –

• Engine oil & filter changes
• Air filter & fuel filter replacements
• Coolant, brake fluid & transmission fluid top-ups
• General inspection & diagnostics
• Tyre rotation
• Electrical, AC and steering system checks
• Suspension & brake pad checks
• Software updates

So your annual car maintenance costs are fixed at ₦55,000 instead of paying on an ad-hoc basis. This is the advantage an AMC offers. Even wear-and-tear coverage on policies usually has monetary caps on claims. But AMCs allow unlimited maintenance sessions at authorised garages, making them cost-effective.

INSURANCE FOR MECHANICAL & ELECTRICAL REPAIRS

While scheduled servicing ensures preventive maintenance, after several years cars inevitably require major repairs. Components like alternators, starters, turbochargers, fuel injectors, ignition systems etc. Have limited operational lifespans. Replacing them can cost upwards of ₦100,000 to ₦200,000 at times.

Add-on covers through insurance providers can save you such heavy repair bills. Some policies cover expensive mech-electric repairs specifically. For example, options like –

• Starter motor cover
• Alternator cover
• Electrical repairs cover
• Electronic component cover
• Alloy wheel coverage

These provide insurance on repairs up to a certain amount during the policy tenure. Usually, such value-added covers come with higher premiums. But they offer financial security against sudden breakdown expenses.

CASHLESS REPAIR SERVICES

A major benefit insurance provides is easy access to cashless repair at wide networks of garages. Thus you avoid upfront payment hassles and documentation formalities at the workshop. You simply get the requisite repairs or scheduled maintenance done based on policy terms and conditions.

The garage coordinates directly with the insurance provider for claim paperwork and fund settlement. Many insurance providers also have dedicated apps and web portals for transparency, faster processing and real-time claim tracking. This facilitates a smooth, stress-free maintenance process.

CONVENIENCE OF ROADSIDE ASSISTANCE

Lastly, most car insurance packages have dedicated 24×7 roadside assistance (RSA) services. You can call the helpline if your car breaks down anywhere due to a mechanical issue, battery problem, tyre puncture etc. Trained technicians arrive at your spot for minor repairs, towing assistance, fuel/key delivery etc.

Many policies cover expenses like minor repairs by RSA technicians, tow-truck costs from breakdown location to the nearest garage and so on. It saves the headache of coordination during emergencies. Opting for add-ons like RSA while deciding your car insurance makes sense.

CONCLUSION

After going through the various ways car insurance can cover maintenance costs, you may wonder – which types of policies have the maximum benefits? Has your car insurance ever paid for your car’s routine maintenance or unexpected repairs? Well, it certainly can!

Comprehensive insurance with add-ons for maintenance is always the best from an expenses perspective. But lower premium third-party plans also have decent AMC offers based on your car’s age and primary usage.

Most importantly, evaluate policy inclusions prudently against your average yearly car maintenance costs before purchasing. This ensures you get covers tailored to actual annual servicing needs.

Additionally, reach out to agents or insurance advisors to better understand specific terms and find products matching your budget. The few extra thousand spent here gives peace of mind for 3-5 years against heavy repair bills. Isn’t that smart long-term planning that pays off? So why not leverage insurance plans sensibly to fund car maintenance in Nigeria?