Insurance companies Archives - Car Insurance Nigeria

Motor Vehicle Insurance: Know Before You Buy

Most of us have childhood dreams of owning a car or a bike at some point in our lives. Once we get a job, we start saving money to buy a car of our choice and then finally we are able to do this. However, there are uncertainties car travels and cruises. Your car could meet with an unforeseen negative eventuality any day, for real!

It is important to get motor vehicle insurance for cars, trucks, motorbikes and other road vehicles. Having this kind of insurance gives you financial coverage in case of physical damage.

Things to keep in mind when choosing your motor vehicle insurance policy:

Here are the types of coverage that motor vehicle insurance usually provides:

Liability Coverage
Fire and Theft Coverage
Comprehensive Coverage
Property Damage Liability
Bodily Injury Liability
Rental Car Insurance
Pay-Per-Mile Coverage
Personal Injury Protection
Under-insured Driver Coverage
Collision Coverage
Physical Damage Coverage
Uninsured Driver Coverage
Gap Insurance

Most of these coverage facilities are optional. If you add them to the policy you choose, your premium amount will likely increase.

Make an informed decision about the kind of coverage you need:

Rates of motor vehicle insurance tend to vary depending on your gender, status, health, assets and income. All in all, always choose a policy that is most suited to you and your life style. Compare motor vehicle insurance quotes online or through agents so that you do not end up making an expensive mistake by choosing a policy that is wrong for you.

Know the loopholes: A good idea is to buy a car that qualifies for a discount, or at least does not lead to additional surcharges. Before deciding to purchase a vehicle, consult your insurance agent about the cost of insuring that vehicle.

What you need to know about motor vehicle insurance policy in Nigeria:

In Nigeria the Third Party Car Insurance policy is compulsory. However, before you acquire third party auto insurance, keep in mind that it does not cover any personal damage you may have incurred in whatever situation. The claim you can make on your third party auto insurance policy is limited. Before selecting a policy, make sure you find out what how much loss the policy covers.

Another kind of motor vehicle insurance, called Comprehensive Auto Insurance Policy, exists to save you from any losses that you might incur as a result of damages caused by an accident. This is not a compulsory kind of insurance, but experts recommend it for your benefit and safety.

In order to read up on any insurance company, you could look up the National Insurance Commission, NAICOM website. There you will get up to date and reliable information about the insurance companies. You will also get information about insurance brokers and reinsurance companies.

Third Party Insurance in Nigeria: A Cheaper Way to be Insured

In Nigeria, similar to other countries, having car insurance is considered to be an essential, especially from a legal perspective. Nigerians purchase car insurance just to avoid being legally liable for not having such. However, because the cost is a major consideration, rather than a comprehensive insurance policy, many resorts into having third party insurance in Nigeria as an alternative. It can provide drivers and car owners with peace of mind without having to spend a lot. To learn more about third party insurance in Nigeria, keep on reading and you will know why you should have one.

What is Third Party Insurance in Nigeria?

Simply put, this kind of insurance is the minimum amount of protection that can be purchased and will provide coverage against physical damages that is incurred to another vehicle or property, injuries to your own passengers or the passengers of the third party, and for medical and legal cost for claims that are filed against you. However, if in case your own vehicle is damaged or if you have been injured and you are the one to be blamed, it is important to note that such is not covered by third party insurance in Nigeria. In the same way, if your vehicle has been stolen or if it has been vandalized, you will not also be covered with this type of insurance.

Some Things to Remember About Third Party Insurance in Nigeria

One of the first things that should be emphasized about this type of insurance would be the limitations in terms of coverage. Because it is an affordable insurance, expect the coverage to be limited compared to what you can anticipate from a comprehensive insurance. With a third party insurance in Nigeria, the insurer will not provide any amount that is more than your limit to the loss. If the amount of the damage is more than your limit, you will be personally liable in paying whatever is the excess.

More so, it is also important to always act in good faith. Car insurance companies are experts in their own field, which is why they find it easy to determine if a person is just trying to rip them off or make false claims. Always be truthful with your claims to avoid any inconveniences. If they can prove that you are not acting in good faith, your insurance can be cancelled, and worse, you will be reported to the police.

At the end of the day, it is important to make the right choice when looking for third party insurance in Nigeria. Make sure that the insurer has built a positive reputation and has gathered positive feedback in the past. See to it that the insurer is also licensed to operate to avoid trouble when filing claims.