How to Choose A Car Insurance Company in Nigeria
Buying car insurance in Nigeria can be a daunting task with so many insurance companies to choose from.
However, choosing the right car insurance provider is extremely important as you want adequate coverage at an affordable price from a reputable company.
This article provides a guide on how to choose suitable car insurance in Nigeria.
HOW TO CHOOSE A CAR INSURANCE COMPANY IN NIGERIA
Are you puzzled by making a choice on a car insurance company in the country? Don’t worry anymore, we have some tips for you. The following paragraphs will highlight the best way for you to choose a car insurance company in anywhere in the country.
CONSIDER THE PROVIDER’S REPUTATION
The first thing to consider when choosing car insurance is the provider’s reputation. Go for established companies that have been operating successfully for several years. They are likely more financially stable. Ask for recommendations from friends, family, and colleagues regarding insurance firms they trust. Also, check online customer reviews about providers to gauge their reputation. Companies with solid reputations often provide better customer service.
COMPARE QUOTES FROM MULTIPLE INSURERS
Do not just stick to one insurer when shopping for car insurance. Contact various top companies in Nigeria and compare the quotes offered. When comparing, consider aspects like premiums, coverage options, exclusions, excesses, endorsements available and any discounts. Narrow down to 3-5 quotes that meet your needs and budget. Avoid very cheap deals that seem too good to be true as they tend to have inadequate coverage.
UNDERSTAND THE POLICY DETAILS
Take time to read and understand policy documents before purchasing cover. Key details to review include the type of policy provided – comprehensive, third party only or third party, fire and theft. Also, check the situations covered under each section, coverage limits, exclusions, excesses payable on claims and any waiting periods. Ensure you are comfortable with all policy terms. Ask questions to insurance agents on areas that lack clarity.
CONSIDER THE INSURER’S CUSTOMER SERVICE
You need an insurance provider with quality customer service. This becomes very vital when processing a claim. Check how responsive and helpful a company’s agents and representatives are when answering initial queries.
Also, consider convenient ways to reach them – e-mail, mobile app, phone, messaging, branches etc. Insurers with multiple contact options often provide better experiences.
CHECK CLAIM SETTLEMENT RATIOS
The claim settlement ratio of insurers is a crucial factor as it indicates their commitment to paying out genuine claims. This ratio shows the percentage of approved claims against total claims received.
Ratios tend to range between 92% and 98% for reputable insurers according to industry standards in Nigeria. Compare ratios before choosing motor insurance.
CONSIDER ADD-ON COVERS AND RIDERS
While comparing car insurance policies, consider useful add-ons and riders provided in addition to the base cover.
Some add-ons to look out for include zero depreciation cover, engine protector, consumable cover, hydrostatic lock cover, passenger cover etc. Such features offer enhanced protection at marginal extra costs.
However, avoid unnecessary covers that may be of limited benefit to you.
OPT FOR HIGHER IDV WITHIN BUDGET
The Insured Declared Value (IDV) is the maximum amount payable by insurers on total loss or theft of a vehicle. Opt for the highest IDV possible that aligns with your car’s market value.
Higher IDV translates to higher compensation if your car is damaged beyond repair or stolen. Just ensure your agreed IDV falls within your insurance budget.
CHECK EXCLUSIONS AND WAITING PERIODS
Look through common policy exclusions including drink-driving, unlicensed driving, depreciation for parts etc. Also check clauses on waiting periods before you can make certain claims.
Reasonable exclusions may be acceptable but overly restrictive ones should be a red flag. Avoid insurers with long waiting periods.
However, some exclusions can be covered by adding extra policy features for more protection.
VERIFY REGISTRATION AND REVIEWS
Confirm that the insurers are registered with Nigerian Insurers Association and National Insurance Commission.
Check if they have decent online presence and positive reviews by searching “[company name] reviews/ratings Nigeria” on Google.
Look for customer testimonials on their website and social media pages. Be wary of insurers with too many customer complaints.
ASSESS FINANCIAL STRENGTH
The financial strength and credibility of the insurance provider plays a vital role at the time of claim settlement.
Check their financial statements and credit ratings which indicate their capability to honour large claims.
Established insurers with higher paid-up capital, large clientele and excellent credit ratings lend more trust in their services.
CONSIDER ONLINE PURCHASE FOR CONVENIENCE
Many insurance companies now allow online purchase through their website or mobile app. This enables convenient policy comparisons, instant quotes and completion of documentation. Claims can also be intimated online. Opting for e-insurance platforms helps fast-track procedures and increases efficiency compared to offline purchases.
Hence, consider buying motor insurance online for a streamlined process.
FAQS ON HOW TO CHOOSE A CAR INSURANCE COMPANY IN NIGERIA
Here are some frequently asked questions often posed by people on how to choose a car insurance company in Nigeria:
WHICH COMPANIES OFFER THE MOST AFFORDABLE CAR INSURANCE PREMIUMS IN NIGERIA?
Some insurers known for competitive rates include AIICO Insurance, AXA Mansard, Leadway Assurance, Cornerstone Insurance, and Old Mutual Nigeria. But don’t judge solely on premium cost – also evaluate policy benefits.
HOW DO I DETERMINE GENUINE REVIEWS FOR INSURANCE COMPANIES?
Check reviews and ratings on multiple credible forums like the firm’s social media pages, website testimonials, and trusted third party rating platforms. Genuine reviews have both positives and some critical feedback. Be wary of reviews that look biased or fake.
DOES BUYING CAR INSURANCE ONLINE MAKE A COST DIFFERENCE?
Yes, most insurers provide discounts on policies bought online as it saves administrative costs. Websites also have tools for self-service quotes, comparison and customizing policies per need – translating into good savings.
HOW DO I CHECK IF A CAR INSURER IS REGISTERED AND LICENSED IN NIGERIA?
Verify they are registered with the Nigerian Insurers Association and hold a valid license from the National Insurance Commission to operate in the country as accredited providers. This ensures they meet regulations.
CONCLUSION
Choosing suitable car insurance requires checking a provider’s reputation, claim settlement ratios, coverage details, add-ons, customer service quality and online features.
Compare quotes across multiple insurers with varying IDVs first before selecting the best-value option customized for your vehicle insurance needs within budget. Invest time to understand policy documents properly before sealing the deal.
Follow these tips to ensure you get adequate protection for your car at cost-effective rates.
