Here are the 6 important reasons why you need comprehensive car insurance in Nigeria or full motor vehicle insurance cover. It offers many benefits that the third party insurance does not cover with greater convenience.
Vehicle insurance, also known as car insurance or motor insurance is the insurance policy document you purchase for your cars, bus, trucks, motorcycles, and other road vehicles to guard against any eventuality.
The primary use of vehicle insurance is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and the liability that could also arise there from.
What is Third Party Motor Insurance?
Millions of car owners and automobile companies across Nigeria only insure their cars and other types of vehicles against third-party liability; which is the minimum requirement by law; according to Road Traffic Act, 1950.
The third party motor insurance is one of the six compulsory vehicle registration requirements or documents any motor vehicle owner should have to qualify to ply the Nigerian roads
It is important to know that this third party insurance policy covers two major things:
- The physical bodily injury (or death) done to your victims in case of road accidents.
- The accidental damage to the Third Party’s Vehicle up to ₦1,000,000.
Third party auto insurance also provides financial support when you damage other people’s property, even if you are at fault.
Another benefit of third party motor insurance is that it gives the driver or the vehicle owner confidence when involved in minor road accidents.
It does not cover any damage done to you or your car. Therefore the third party insurance cover is limited.
So, if you want to register new vehicles in Nigeria or you want to renew your existing vehicle insurance, it’s always advised to go for a more comprehensive cover.
This is because comprehensive insurance policy is the most important document in your vehicle – that protects you against financial loss, reasonable liability for deaths, and legal related issues that may arise.
Having a comprehensive insurance for your motor vehicle is better. It offers the widest scope of covers, among all other types of motor insurance policies.
In addition to the benefits you get from third party insurance, here are the key important advantages of comprehensive insurance package. These are the benefits to expect from most Nigerian vehicle insurance companies; or the immunity the insurance providers or agents will give you as a vehicle owner or driver in Nigeria.
6 Benefits of Comprehensive Car Insurance in Nigeria
#1. Cover Against Car Theft and Vandalism
Purchasing a comprehensive vehicle insurance policy will protect your vehicle from damage or loss, when someone breaks in to your car to steal your things or the car itself.
#2. Insurance Against Fire Accidents
Any damage to insured vehicle resulting from Fire that is caused by explosions, self-ignition and other natural and accidental causes are covered.
#3. Cover Against Natural Disasters
Natural disasters include hurricanes, lightning, flood and windstorms. Damages resulting from malicious act, Strike, Riot and civil commotion are also featured under this section.
In such cases, the cost of material and labour required to fix the vehicle will be covered. So, the insurance company would be the one to pay the bills.
#4. Car Damage Due To Falling Objects
Your comprehensive vehicle insurance policy document will protect your property from the damages that occurred in your car as a result of falling objects.
The falling objects that can damage your car, bus or truck are debris from construction sites or trees falling due to rain falls, winds, etc.
#5. Car Damage Due To Animals
Animals such as birds can fly in to your car windscreen and causes damage anywhere on your vehicle.
Damages caused by striking an animal with your car are covered under your comprehensive vehicle insurance policy.
#6. It provides Auto Insurance Support
Your automobile insurance policy may also include more than just coverage for your vehicle.
Other cases like, towing facilities or charges incurred in an event of accident would be covered first under your Collision or Comprehensive coverage.
This can also be covered under your Towing and Labor (roadside assistance) services. If your policy does not include Collision/Comprehensive package, please contact your insurance agency.
Before you purchase your new vehicle Insurance, below are some points you need to understand.
Things to Consider in Comprehensive Car Insurance in Nigeria
As the business owner or company executive who understand the value of your vehicle; considering the cost of spare parts and risks you may be facing while driving the car, you would see that comprehensive vehicle insurance is the best way to go.
This is because having a comprehensive cover means that you are protected against any claims made by drivers or other road users whose vehicles or property was damaged in an accident that your are at fault.
It also allows the policy holder to claim (from his insurer) for accidents that occurred when fault cannot be established against him or another person.
This is including when you return to your parked vehicle somewhere along the road or at home and find out that it has been damaged by an unknown vehicle or person.
No matter the type of a vehicle that you need comprehensive auto insurance for in Nigeria, we recommend that you consider the following car insurance companies in Nigeria.
They offer flexible comprehensive auto insurance plans that include vehicle service inspections, quick claims settlement, and 24/7 response time.
5 Top Vehicle Insurance Companies in Nigeria
- AIICO Car Insurance Plc.
- Royal Exchange Insurance Plc.
- Cornerstone Insurance Plc.
- AXA Mansard Insurance.
- Leadway Car Insurance.
What is the Price of Vehicle Insurance in Nigeria?
The cost of third-party and comprehensive vehicles insurance in Nigeria depends on some factors; like the model of your vehicle.
Third party car insurance cover is cheaper as compared to comprehensive insurance. It also depends on the type of your vehicle. A premium third party insurance policy costs ₦5,000 to ₦15,000 naira per annum.
For private vehicle owners, corporate bus organizations, commercial fleet managers, taxi and motorcycle drivers; the annual price of comprehensive car insurance in Nigeria starts from ₦70,000 to ₦200,00 thousand naira; depending on the insurance company and the type of your vehicle, car, jeep, truck, company bus, power bike, etc.
To buy insurance product, you need to provide the following information:
- Your Vehicle Chassis Number
- The Engine Number, and
- Vehicle Registration Number
Wrapping up: Benefits of Third Party Vs Comprehensive Car Insurance in Nigeria
These are the important Benefits of Third Party and Comprehensive Car Insurance in Nigeria. We hope you will make the right choice when buying the next insurance policy for your car, bus, truck, or even motorbikes? We also included the cost of different types of auto insurance plans for you to consider.
Comprehensive insurance is the most protective motor vehicle cover that can give Nigerian drivers the peace of mind while going around their daily business endeavor.
At AB Drives, we understand that accidents happen. And when they do, our concern would be the safety of the driver, your family and other passengers like yourself.
As a motoring company in Nigeria, we refer and help you purchase a comprehensive car insurance coverage with vehicle breakdown assistance like vehicle towing, medical facility, authorized auto mechanic and tracking packages.
The descriptions of comprehensive insurance benefits listed above are necessarily briefs; and are subject to the provisions or exclusions that can only be expressed in the policy and related endorsements by our Partner Insurance Companies.
Please Contact our insurance agents now and Request a Quote and additional details for free.