Car Insurance In Nigeria: All You Need To Know

According to dictionary.com, insurance is being defined as an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. Nothing gets an average Nigerian scared that the word Insurance due to some misconceptions or maybe due to some experience they with the firm. It is a known fact that driving around in Lagos needs special skills, and a whole lot of patience. But what we don’t really know is how to keep safe on the roads and most importantly, how to protect ourselves from any type of accident.

Insurance is mandatory for car users and owners in Nigeria as an accident can not be predicted even though we all pray for journey mercies whenever we step out every day. Here are some reasons why you need car insurance.

1) It’s an act, it’s the law
Ever heard of third party insurance act? Well, that act is not there as a joke,  that act was made for drivers in Nigeria to have at least a third party insurance cover to drive on the road. Most states require drivers to possess bodily injury and property damage liability to drive legally. Hence the need for comprehensive insurance.

2. Insurance is an investment 
After receiving auto car loans, getting a policy is the next step to protecting the substantial investment you’ve made on your vehicle. After buying a home, purchasing a car is probably one of the biggest investments you’ll ever make, so you want to do all you can to preserve it.

3. It is your health insurance in case an accident occurs
If you don’t have health insurance or have a minimal coverage, applying for policies that offer medical payments coverage can help you pay for collision-related medical expenses up to a certain amount.

4. It protects your assets from liability lawsuits
Having liability lawsuits for body injuries or property damages can bring you to financial ruin if you don’t have adequate protection, nut if you have a liability coverage, it will pay for your legal defense and keep your assets out of jeopardy.

5. Cover damages to your vehicle from unexpected events
Let’s face is, this is Nigeria. Anything can happen at anytime. Your car could be stolen, vandalized, or damaged by weather or a host of other contingencies at any time. Your car insurance will protect you from these losses that might ensue.

6. Your vehicle is covered even after a collision
Some policies will include rental reimbursement coverage, which helps you pay for the cost of a rental car after you are involved in a covered accident. This way, you will have a way to get around while your automobile is being replaced or repaired.

7. Keep your vehicle’s accessories safe
You can apply for pricing estimates on policies that include additional protections, such as CD or stereo coverage. This will pay for losses in the event that your CD’s or stereo equipment is stolen.

8. Prevents an accident from forcing you into bankruptcy
One serious collision is sometimes enough to put the uninsured on the brink of bankruptcy. Without insurance, you could lose everything, and that is not worth the risk. The money you would have to spend on medical expenses, lawsuit judgments, and repairs is well worth the investment in a plan.

9.Third Party Property damage
Car Insurance covers third party, third party property damage and unlimited legal liability that might arise in the process.

10. Peace of mind
Last but not least, the peace of mind that comes with knowing you have insurance is absolutely priceless. Comparing quotes on quality plans can help you drive with more confidence because you will know that you are protected against whatever may happen to you on the road.

Below are some few good Insurance companies that can provide trusted services…..

• AIICO Insurance PLC.
• IGI Insurance.
• Old Mutual Nigeria.
• Cornerstone Insurance.
• Consolidated Hallmark Insurance.
• FBN Life.
• Leadway Assurance PLC.
• Zenith Insurance PLC etc