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Motor insurance in Nigeria: Recent Trends and Predictions

Nigeria has witnessed a magnificent growth in the past two decades. Appreciable levels of urbanization have evolved and the law has evolved with it. Motor insurance is a service designed to protect vehicle owners from multiple risks that may occur. Motor insurance in Nigeria is normally offered in two categories: Comprehensive, Third Party. But, some companies offer a sort of extension called the Third Party Fire & Theft. In Nigeria, it is mandatory to own car insurance before driving your vehicle.

The first kind of insurance, called Comprehensive is sort of a master service because it includes the Third Party Cover and protect against damage. Most of the insurance companies offer cover against accidental collision, fire, explosion, theft and malicious acts, with an option to buy additional protection against riots, damage against floods, liability to passengers and expenses incurred if you happen to damage your vehicle.

The second kind, which is called the Third Party policy protects from death or injury from the use of the unshed car and the obvious damage to a third party´s property. As previously stated, motor insurance in Nigeria tends to include Third Party when you buy the Comprehensive package.

As for the third one, the title practically describes it. But not every company tends to offer it. However, the services offered may vary from one company to another and it is always a good idea to consult multiple options.

The motor insurance business in Nigeria is forecasted to grow 7% in the following three years even when at the moment, the trend among motorists is to remain unlicensed, despite this being mandatory. Companies are charging a reasonable price, even in the eyes of motorists, but they are still not buying it. The reason may be because there are what is called fake insurance paper to avoid being stopped and get searched. These fake insurance papers may cost a bit more than the third party but people tend to think that Insurance companies just do not come through for their clients.

By 2020, there is an estimate of 40 million vehicles to be roaming the streets of Nigeria and the challenges will grow accordingly, and that includes a bigger possibility of accidents occurring. Motor Insurance in Nigeria needs to arise to the challenge and do not underestimate these changes if they want to remain successful and gain the trust of those that are not yet convinced.

The newest trend is the collection of more data to have a better database of motorists in Nigeria. Insurance companies are working alongside Nigerian Corps to create an astounding database of all insured vehicles. This will prove to be a great weapon in the development of Nigeria as a growing city and an economic force and insurance companies will certainly be among the leaders for these modifications.

Common Types of Commercial Vehicle Insurance

In Nigeria it is compulsory to buy an insurance policy for your vehicle in order to stay protected all the time and keep you on the right side of the law. First of all it is important to know that car insurance policies are not designed to force you into some legal complications rather they are specialized protection covers designed for your vehicles. In case you face any accident while travelling on road an insurance company will stand with you to cover all the losses as well as medical contingencies.

In some cases employees make use of company vehicles for personal and business purposes so it becomes essential to buy some Commercial vehicle insurance cover so that you can stay safer always. Determining which policy suits you better actually depends upon type of services you expect from your vehicle and how efficient your driver is. There are various factors that play important roles while finalizing Commercial vehicle insurance online or offline.

Some of the most common commercial vehicle covers include:

Comprehensive cover:

It covers accidental damage, fire, theft, injury to other person as well as hijack issues. This policy is considered to be highly beneficial for Commercial vehicle insurance in Nigeria.

Third party theft and fire cover:

This type of policy provides protection against fire; hijack, theft as well as injury to a third party/person but it do not cover accidental damage to your own vehicle.

Third party Cover only:

It covers the loss of life or property to other person but damage of your vehicle is not covered. Generally people opt for this kind of insurance to complete the documentation and settle for lesser premiums.

All these Commercial vehicle insurance policies are available with various online and offline dealers and one can choose any of them depending on need and budget. When you buy some insurance policy you subscribe to financial support from the insurance company at any time of critical road accidents… It is good to choose a policy cover that can serve you better for life. If you move your vehicle outside Nigeria then you can go for some ‘out of Nigeria’ insurance policy covers.

Insurance policies offer you financial aid at the time of an accident but it depends on type of cover you bought eventually. To avail these benefits at the right time you need to pay your premium from judiciously because this money comes right from your premium and if you have not paid all funds on time it may lead to some hurdles at the time of need. In fact there is a popular ‘no premium no cover’ policy among insurance companies in Nigeria and beyond. There are lots of companies that provide Commercial vehicle insurance; you can check their quotations online and compare their services. Once you find one that suits your need better contact the service provider and get complete details about the terms and conditions. Understand that this is not a formality rather it is your responsibility and will pay you in the long run.