Things You Need Know Before Buying Car Insurance in Nigeria
Are you going to buy car insurance in Nigeria soon? Do you find it confusing with so many choices and rules?
Getting the right car cover can be hard in Nigeria. With more accidents on roads, insurance has become very important. It protects you when someone gets hurt or car gets damaged. But many people buy policies without knowing well. They waste money on bad plans or wrong covers.
So before you buy insurance quickly, read this to understand better. It will help pick the best cover for your needs and budget.
THINGS YOU NEED TO KNOW BEFORE BUYING CAR INSURANCE IN NIGERIA
Buying car insurance in Nigeria can be confusing with so many options and factors to consider.
However, having the right car insurance coverage is essential to protect yourself financially in case of accidents, damage or theft.
Here are some key things you need to know before getting car insurance in Nigeria:
UNDERSTAND THE BASICS
The first thing is to understand what car insurance actually covers. There are typically three main types of auto insurance in Nigeria – third party, third party fire and theft, and comprehensive.
Third party liability only covers damages you cause to others and their vehicles. Third party fire and theft adds coverage for fire and theft of your own vehicle. Comprehensive is the highest level which covers all of the above plus damage to your own vehicle even in accidents where you are at fault.
CONSIDER FACTORS THAT DETERMINE PREMIUMS
Your car insurance premium, which is the amount you pay, depends on factors like your age, car’s age, model and value, location, driving experience, claims history etc. Provide accurate details to insurers to get an appropriate quote. Newer cars in safer areas get lower premiums. High risk drivers pay more. See How Much Does Car Insurance Cost in Nigeria (2024).
UNDERSTAND DEDUCTIBLES AND PAYMENTS
Deductibles are your portion of costs to be paid in claims before insurance coverage kicks in. Opting for higher deductibles reduces your premiums but increases out of pocket costs later. Also be aware of payment structure – some insurers in Nigeria only accept annually paid premiums.
LOOK INTO DISCOUNTS
Many insurers offer discounts – multi-policy, anti-theft devices, low mileage, no claim bonus etc. Finding insurers with discounts that match your situation can significantly reduce your premium. However discounts differ widely between companies.
COMPARE MULTIPLE QUOTES
Rates for same coverage can differ by even 100% between insurers. So compare quotes from multiple companies before choosing one. Online insurance aggregators allow you to get quotes from multiple insurers together. However don’t just choose cheapest option without checking policy details and insurer reputation.
CHECK INSURER’S REPUTATION
With many small players, the Nigerian car insurance market has insurers with varying service quality and claim processing times. Check online reviews and feedback from existing customers before buying the policy to avoid future hassles during claims. Also verify insurer is registered with regulatory body National Insurance Commission (NAICOM).
UNDERSTAND CLAIM PROCESS
Be very clear on the claim documentation and processes specified in your insurer’s policy. Typical documents required may include your driver’s license, car registration certificate, police report, and any proof related to cause of damage etc. Prompt notifications and submitting right papers accelerates claims approval and disbursal. See how to file an insurance claim in Nigeria.
KNOW AREAS NOT COVERED
Despite best policies, some causes and losses may still not be covered by standard car insurance – like drunk driving, pre-existing vehicle condition, unreasonable speeding etc. So remain aware of major exclusions specified in your policy. You may be able to add specific add-ons for your car insurance covers later if required.
CONSIDER ADDITIONAL COVERS IF NEEDED
Besides basic own damage and liability covers, car insurance policies come with a range of add-ons like – zero depreciation, personal accident cover, key replacement etc. These pay extra premiums but also provide wider protections as per your needs. Evaluate their trade-offs carefully while purchasing.
UNDERSTAND GEOGRAPHICAL LIMITATIONS
Standard car insurance policies only provide coverage within Nigeria’s geographical boundaries. Crossing national borders into other African countries may invalidate your coverage unless explicitly permitted in policy contract. Check with insurer on applicability of export insurance certificate for visiting neighboring countries.
PLAN POLICY RENEWALS IN ADVANCE
To enjoy continued coverage without gaps, start renewing your annual policy at least 1-2 weeks before expiry. Insurers need sufficient turnaround time for inspection and issuing fresh policy documents. Delayed renewals can cause you to pay from own pocket if accidents happen during non-coverage periods.
WEIGH OPTIONS OF COMPREHENSIVE VS THIRD PARTY COVER
Though comprehensive insurance charging higher premiums provides greatest protection, third party plans with only liability coverage may be affordability options for car owners with old vehicles. Evaluate your personal financial capacity along with car’s worth before deciding level of coverage.
These are some essential aspects for Nigerians to consider when planning to purchase car insurance. Choosing optimal policy as per your budget and needs takes some effort but saves you money and stress in the long run.
CONCLUSION
Choosing good car insurance in Nigeria takes effort. You must check different companies and know the rules fully. See what covers damage, injuries or theft.
Also the price they charge yearly. Some covers are full, some only basic. See what you really need. Also check the company – are they real, do they help well if an accident happens?
Taking time to understand will avoid trouble later. Even basic cover can be ok if car is old. But choose one that gives you the protection you need at a cost you can pay.
