Uninsured & Underinsured Motorist Coverage: Why It Matters in Nigeria

Uninsured or underinsured motorist coverage is used when a driver at fault does not have enough or any car insurance coverage for liability. Having uninsured or underinsured motorist insurance saves you from having to pay out of pocket for a car accident you didn’t cause.

Having this type of car insurance protects you from car accident issues that arise from accidents with other vehicle owners who don’t have insurance or don’t have enough. If you don’t have comprehensive vehicle insurance in Nigeria and are unsure of the insurance status of other vehicle owners on the road, it’s important to purchase uninsured or underinsured motorist coverage.

What is Underinsured Motorist Insurance in Nigeria?

Underinsured or uninsured motorist coverage helps car owners pay for the expenses when they hit a driver with underinsured or uninsured coverage. In some insurance companies, uninsured or underinsured motorist coverage is sold separately, while in others, it is bundled into comprehensive car insurance.

An underinsured driver is a driver who does not have enough insurance to cover someone else’s damages if their car is found at fault in an accident. Oftentimes, an underinsured driver has a car insurance policy. But, their liability coverage is lean that it wouldn’t cover the expenses of fixing your vehicle.

An uninsured driver, on the other hand, is a driver who has no insurance policy. In this case, you have to repair your car yourself when involved in an accident with your vehicle. That’s why having uninsured or underinsured motorist coverage is important.

Difference Between Uninsured & Underinsured Motorist Coverage

Uninsured motorist insurance protects your vehicle if you are in an accident with a driver who is at fault but doesn’t have liability car insurance. 

Underinsured motorist coverage protects you when you are in an accident with a driver who is at fault, but their liability car insurance does not cover the entire damage incurred during the accident. The driver at fault will only pay for the damages up to the amount his insurance can carry, while your underinsured motorist coverage covers the remaining.

How Does Uninsured & Underinsured Motorist Coverage Work?

Imagine this scenario: You are involved in a car accident that wasn’t your fault, and you’ve filed a complaint to the insurance company about the driver at fault. Suddenly, the insurance company writes back, notifying you that the driver’s liability coverage will only cover a bit of the damage. In that case, the insurance provider pays you the claim the at-fault driver’s coverage can afford. Then your underinsured coverage does the remaining.

Another scenario is this: you’re involved in a car accident with an uninsured driver. Obviously, the driver might not be able to afford the cost of car repair. At this point, you’ll have to write to your insurance company for coverage if you have an uninsured motorist coverage in your insurance policy.

These two types of motorist coverage save you from the risk of getting involved with drivers and car owners who cannot foot the bill of repairing your vehicle when they’ve smashed into it. You can either purchase this type of insurance separately or have it added to your comprehensive insurance plan.

Two Types of Uninsured & Underinsured Motorist Coverage

Uninsured or underinsured motorist coverage is broken down into two types:

• Bodily injury & 
• Property damage

The Underinsured or Uninsured bodily injury motorist coverage is designed to cover medical expenses, pain, and suffering of you and the people in your car when an accident occurs. If the accident is caused by someone who does not have underinsured or uninsured motorist coverage.

The uninsured or underinsured property damage is designed to cover your car if someone hits you and does not have liability car insurance or enough liability car insurance. They sometimes also cover collision deductible, rental cars cost, or other expenses related to the car.

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For some insurance companies in Nigeria, they sell both types together, while there might be some that sell them as separate packages. To know which companies have the best quotes on this coverage, always do thorough research before purchasing a premium.

Conclusion

Uninsured and underinsured motorist coverage saves you from road risks. Most vehicle owners who cannot afford a comprehensive insurance plan often opt for uninsured or underinsured motorist coverage. While this plan is essential, it’s also important to check the insurance company’s quotes before making a decision.