Car Insurance – Do you know that if you get into a car accident, and your car gets damaged that you don’t have to worry about how to get a new car in Nigeria? But the problem is that many Nigerians are not informed about auto insurance in Nigeria or they just don’t care about registering. But, auto insurance is mostly for the owner’s benefit because it helps to protect the owner against any financial loss incurred from having and operating an automobile in Nigeria.
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So if having car insurance is important, why do many Nigerians avoid it? Many Nigerians avoid subscribing to it because most people see it as an unnecessary expense where the insurance company gets all the money. However, getting car insurance is compulsory in Nigerian law.
So, the Nigerian law is helping you get protected against any unforeseen circumstance which may need you to plan on how to get millions of naira to buy a new car. With insurance, you either get a sum of money after the incident that values the car that was stolen or damaged or the damaged car is fixed by the insurance company. So no worries yes?
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- Is car insurance compulsory in Nigeria?
Getting car insurance in Nigeria is very compulsory. Although there are two main types of auto policies in Nigeria, the Motor Vehicle (Third-party) Insurance Act of 1950 makes Third-party auto insurance very compulsory to have. And failure to have one can get a person imprisoned or fined.
How to get your car insured in Nigeria
To get your car insured in Nigeria, you want to ensure that you are following the right steps and procedures. So the things to know before getting your car insured are:
Do your research:
You want to know what insurance company is the best fit for you. To get this information you can enter a topic into your preferred search engine about ‘how to get your car insured in Nigeria’ or ‘auto insurance companies in Nigeria.’ But your best and safest will be to visit the official website of the National Insurance Commission (NAICOM) to know the auto insurance companies in Nigeria that are safe, registered, and in business.
What are the best car insurance companies in Nigeria?
Some of these companies are:
- – Old Mutual Nigeria
- – Zenith Insurance PLC
- – Leadway Assurance PLC
- – Cornerstone Insurance
- – Consolidated Hallmark Insurance
- – FBN General Insurance
- – AIICO Insurance PLC
- – Industrial and General Car insurance
- – Axa Mansard Car insurance
- – Custodian and Allied Car Insurance
2) Choose your preferred type of Auto Insurance:
After you must have browsed through the various services and options offered by the registered car insurance companies in Nigeria, it is time to choose your preferred type of auto policy. The type of auto policy you decide on will require you to visit the company at their office or give them a call.
At most companies, you will be required to fill out some forms. Some of these forms may differ from company to company but the standard ones are:
- Know your Customer (KYC) form
- A motor proposal form
- A motor insurance physical inspection form
There are also two types of car policies to choose from. They are:
- Third-party auto insurance: This type of insurance covers death, and body injuries resulting from car accidents and covers the damages to the properties of the 3rd party involved. So, with this type of auto policy, you don’t get compensated for losing a car, you only get treated through your insurance, but the property of the next person involved in the accident will be covered (depending on who was in the wrong). Third-party auto insurance is compulsory in Nigeria and it is also the most popular type of car insurance in Nigeria.
- Comprehensive auto insurance: Here, this policy type covers the cost of the damaged vehicle or stolen vehicle or vandalized vehicle. It includes costs for bodily damage, cover for 3rd parties, and legal liability for the death. This type of car insurance is not very popular in Nigeria and it is not compulsory in Nigeria.
3) A charge of 4-5% of your car value:
To buy an insurance plan for your car in Nigeria, most companies charge 4-5% of the total value of the car being insured for a period of one year.
4) Some authorized car dealers in Nigeria may already have an established relationship with a registered insurance company, and if there is a valid relationship, and if you are patronizing the car dealer, you may get access to a comprehensive auto insurance cover as an option when buying.
5) Some car insurance companies in Nigeria provide a car tracking device for car owners to use. The price of these tracking devices depends on the insurance company offering it.
6) After agreeing on an auto policy, the car insurance company in Nigeria issues a certificate that contains every little detail about your policy.
7) To confirm the originality of your policy, you can visit www.askniid.org and you can confirm if the certificate of policy issued is genuine or fake. If it is a fake one, then you will not have any of your details registered in their official database. But if it is genuine, your details will be in their database. Don’t forget to Read Tips For Getting The Best Price On Auto Insurance
What is Third Party Car Insurance?
Again, what is third-party insurance?
Third-party insurance is a type of car insurance policy that offers protection to the third party involved in a car incident other than the insured, whereas the insured is only protected against body injuries. The third party is insured from body injuries and his or her vehicle.
In Nigeria, third-party insurance is made compulsory by law under the Motor Vehicle (Third-party) Insurance Act of 1950, thereby making it one of the compulsory types of insurance law in Nigeria. The other types of important insurance are Insurance for Public buildings, Insurance for Buildings in construction, Group life insurance, healthcare professional indemnity insurance, and Employers Liability insurance.
The Insurance Act 2003 includes that third party insurance covers the damage or loss to the property of a third party for N1 million. And in Nigeria, it is a criminal offence not to possess a third party car insurance policy and it is punishable by the law by getting imprisoned for one year or paying a fine.
Cost of third party Car insurance in Nigeria
Third-party insurance in Nigeria is cheaper than a comprehensive auto policy. Depending on the type of vehicle, an annual insurance premium between N5, 000 to N10, 000 is charged.
Why do you need third-party Car insurance in Nigeria?
Although the third party insurance only covers the third party involved, it helps to save the insured from accruing the costs of getting the third party’s car fixed or replaced because the insurance company covers the costs. Other reasons are:
- Having it protects you from getting fined or punished by Nigerian law.
- It is cheaper and more affordable than the comprehensive auto policy in Nigeria.
- It offers protection against any liability resulting from the damages to a third party.
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