Car insurance is usually a fixed expense in most homes. In addition to fueling, maintenance and taxes, owning a vehicle implies paying an insurance policy in Nigeria. This is:
If you have to face the moment of taking out car insurance, knowing what the different types of car insurance in Nigeria are and what each one can offer you will help you choose the most suitable one. Not all cars need the same insurance benefits, so it will be necessary to hire those that best suit the type of car, the driver and the use that is going to be made of the vehicle. Do you want to know which insurance best suits your needs? Continue reading!
What should be taken into account before hiring car insurance?
Since the motor insurance act of 1950 was approved, car insurance has become mandatory in Nigeria. The legal text indicates that all motor vehicles must have at least compulsory civil liability insurance, or what is the same, the basic third-party policy to be able to circulate on public roads and highways.
Currently, the wide portfolio of types of car insurance means paying attention to the needs and uses that are going to be made of the car. So before taking out car insurance it is convenient:
- Analyze yourself as a driver: determine your history of fines, punctures or breakages and your driving habits: if you use the car for long journeys, for day to day. You also have to take into account where you park it: if you have a garage or if you always park it on the street.
- Make an X-ray of the vehicle , since depending on the model, its age and even its value, you will need one modality or another.
- Compare and look at the limit of coverage before opting for one policy or another. It is very important to pay attention to the exclusions that are included in the contract.
What types of car insurance are there in Nigeria?
Third-party insurance is the minimum type of car insurance that must be contracted by Nigeria law, since it is intended to cover damage caused to other drivers or vehicles. That is, in cases where the policyholder is to blame for the incidents, where mandatory civil liability acts, a coverage that appears in all types of insurance.
In certain cases, it also includes voluntary civil liability coverage that expands the economic amount of the insured. It also usually includes the legal defense of the insured and driver insurance for damages that may be suffered.
Extended or combined third-party insurance
This type of policy includes the same benefits as the previous one and, in addition, other service coverages are included, such as damage caused to the windows of the vehicle or those caused by a car fire, the alleged theft of the car…
It includes a complete range of coverage, assistance and services. This type of insurance has a very interesting coverage: own damage, which covers conditions in the vehicle itself that have been caused by the driver.
It includes from the slightest damage, such as small bumps, to the total loss. In addition, it includes the benefits of previous insurance. Services such as replacement vehicles or defense against traffic tickets are usually included in these policies.
All risk with franchise
It is similar to the previous one, but, in this case, the excess is included, which is an amount paid by the insured person if there is damage to the vehicle. This means that the price of the policy is lower than in the all-risk policy, because the policyholder will pay the expenses up to the amount established as a franchise and the rest is taken care of by the insurance company.
All risk with excess for electric car
The rise in sales of electric cars has forced insurers to design specific plans for this type of vehicle. In this case, in addition to all the benefits of an all-risk package, coverage for the theft of the integrated recharging cable is included.
Essential coverage in your car insurance in Nigeria
1. Mandatory civil liability
Its name already indicates it, it is mandatory to drive, for which it must always be included in all types of car insurance, from the most basic to the most complete.
2. Driver’s insurance
Both common sense and the statistics of accidents and injuries in traffic accidents advise not to skimp on this insurance coverage that assists the driver when he is guilty of the accident. Most companies incorporate it even in their most basic proposals.
3. Roadside assistance
The most practical coverage used by car drivers. It is essential to travel safely and calmly. It is important that it be from kilometer zero and, depending on the type of trips made, that it includes not only the country of residence.
The importance of the front, rear and side windows of the car as elements on which visibility at the wheel depends; as well as its vulnerability and delicacy, make it essential to include this coverage when hiring car insurance.
The glass insurance must cover both replacements and repairs of any of the car’s windows, including both the glass and the necessary labor.
5. Legal defense
Insurance companies regard this coverage as crucial; therefore, it is almost always included in the most basic insurance.
Unfortunately, this is quite useful coverage, although it depends on the place of residence, the use of the car and where it is regularly stored. This coverage is essential if the car is new, high-end with many accessories and, in general, if it is an attractive car to be the object of theft.
7. Withdrawal of driving license
This is a coverage whose characteristics and compensation vary quite a bit from one company to another, so it is necessary to know all the details in the specific case and compare it with the driver’s profile. In principle, it should be a useful coverage for people who depend professionally or personally on driving on a regular basis.
8. Replacement vehicle
This is a highly publicized insurance coverage in recent times. However, it is necessary to be very realistic when measuring its use since it depends a lot on the personal situation of each driver. In addition, insurance companies also offer different benefits within this service. It is essential to be informed in detail.
9. Claim for fines
Like the previous one, it is a known and practical coverage. In principle, it is necessary to know the particular details in each company and assess them in detail to know, if necessary, what services are covered.
It is not a widely used coverage and it is advisable to be correctly informed of the type of fire that is covered, as well as the compensation and if they are only for parts or accessories of the vehicle or for the car as a whole, for example.
We invite you to analyze if your type of car insurance has everything you need and values if you need a change