third party auto insurance 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.

Let’s Talk About Car Insurance Companies in Nigeria

One of the countries showing good signs of economic growth and an increase in the number of people in the middle class is Nigeria. It remains to be seen how this country’s financial system will continue to grow, but one key indicator of its health is the demand for cars and other vehicles. This, in turn, increases the demand for related products, such as insurance, which means that more Nigerians are considering which firms to turn to for vehicle insurance policies. Here is some of the key information people need to know about car insurance companies in Nigeria.

Car Dealers and Comprehensive Insurance

When people buy new vehicles, they may not feel the need to research car insurance companies in Nigeria because their car dealer may already be offering comprehensive insurance as part of the vehicle purchase. Or the buyers may be offered this kind of product as an option, for an additional fee. The idea here is that when these customers purchase the vehicle, they already want to take care of related requirements and charges, so that they can simply enjoy owning and driving the car. Since third party auto insurance is mandatory under Nigerian law, the customers can already meet and exceed this requirement by including the comprehensive car insurance in the purchase. That said; it is still better to ask around with other car insurance companies in Nigeria because it may be possible to get a better deal on this product, so that it will cost less, or it will include additional benefits.

Well-Known Insurance Companies

When choosing from among car insurance companies in Nigeria, it’s important to choose companies that you know you can rely on. If a less well-known company offers the product at much lower rates, it’s important to step back and consider the offer carefully. After all, even if the insurance product is more affordable, it will not do much good if the company will refuse to honour the agreement later in the event of a car accident or some other condition. Or, even if the company eventually honours its obligation, it will not be a good situation if you will be forced to jump through hoops or wait a very long time, before this, can happen.

So it makes more sense to narrow your choice to car insurance companies in Nigeria which have a good track record of making timely payments and offering good customer service. Some of the companies, which tend to get mentioned, include Zenith General Insurance, Leadway Assurance, AIICO Insurance PLC and Cornerstone Insurance. Be sure to do your due diligence, and this includes reading the fine print of any policies, as well as checking within your circle of friends and family members, to find recommendations. This way, you can make sure that the firm you eventually choose is one of the car insurance companies in Nigeria which can truly be trusted.