Do you groan at the thought of buying auto insurance for your car year in and year out? Don’t worry; we’ve got all the information you need to make life easier in spite of complexities of buying auto insurance in Nigeria. But before you actually commit to a particular auto insurance policy, you need to get the basics clear.
What happens when you buy auto insurance?
When you get your car insured you are passing on the financial risk involved in driving your car to the insurance agency. This means that if your car is involved in an accident, or if it is damaged or stolen, the insurance company will bear all the losses that are covered under the provisions of the car insurance policy you have bought.
Besides, vehicle insurance that covers third party liability is mandatory in Nigeria under the provisions of the Auto Vehicles Act. This means that your car insurance policy must cover all third parties in case of an accident, even if it does not cover damage to your car.
Car insurance comparison
You have two options here:
1. Third party car insurance – This is a specific policy that covers the third parties that have been injured or damaged in an accident with your car and you have been held accountable. This kind of motor insurance will cover your liabilities for the loss caused to third parties.
Your insurance company will pay up for the damage that has been caused by your car, but won’t cover the damage caused to you or your car. Third party auto insurance does not help if your car is stolen or meets with an accident where no third parties are involved.
2. Comprehensive car insurance – This kind of auto insurance is much wider in scope and protects you against most eventualities. Along with third part liability, it also covers you and your car against theft, damage, injury and accidents. Depending on your insurance provider, you can choose from a range of additional features that will increase the coverage provided by your car insurance policy.
Buying comprehensive auto insurance is the obvious choice for most car owners. However, third party car insurance has significantly lower premiums – this helps if your car is too old to make it worth the relatively higher premiums charged by comprehensive coverage.
How to identify the best auto insurance deal
The best way to identify a good policy is to go to the right website. There are many online portals that offer free auto insurance quotes and allow you to compare various plans on the basis of their features and premiums. You also get to choose from a large selection of leading insurance providers and buy the car insurance policy online.
All you need to do is fill in a simple with all your details, which will then be submitted to the insurance company of your choice. This will fetch you the policy features you need at the lowest possible premiums. Accuracy and reliability are the hallmarks of most online auto insurance websites.
-By Amadi Bethel.
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