Owning a car can mean many things to many individuals. To some, it’s a necessity owing to the toe of work and tussle they engage in daily. But for others, it’s proof or a sign of affluence and wealth. Whichever class one falls in, no one is ever happy when present in an accident situation.
Since we are in Nigeria, the possibility of Accidents in Nigeria is further heightened by the presence of bad road networks and traffic connections that link our country. When you coalesce this with the sometimes illogical behaviours of Nigerian drivers, one can not but expect the occurrence of accidents on the highway.
Hence, there is a need for a security measure or a contingency plan to reduce the effect of accidents. This is where the need for car insurance can not be underestimated.
There are no legal compulsions to obtain Car Insurance except for third-party Insurance (more of this as you read in this article). Hence, the holder of car insurance does more help to himself by getting one than otherwise.
What is a Car Insurance?
It is a contract between a vehicle Owner and an insurance company. It can also be called an Auto-Insurance and it provides you with financial protection in cases of accidents, theft or damage to a vehicle and injuries to others.
1. Accidents:-
The current state of the Nigerian road network has caused accidents that would have been otherwise avoided in the presence of a good road network. The inability of road users to effectively abide by the traffic rules further increases the possibility of an accident.
2. Theft:-
As a result of the level of criminality that bedevilled the nation of Nigeria, cars aren’t safe, particularly those without car security technologies. Certain times, the criminals take some vital parts of the vehicle or cart away with the entirety of the system.
3. Injury to others:-
In certain scenarios, the owner of the vehicle is usually the one who is the cause of the accidents and another individual is the victim. In this case, there’s telling the recompense that could be incurred as a result of the injury to the individual and there’s not to mention the unfortunate eventuality of a fatal scenario
These aforementioned cases, further a burden on the heart of the car owner of the need to get a r insurance to ensure he is carefully shielded from these occurrences and in the eventuality that they occur, the financial effects are cushioned for the car owner.
Types of Car Insurance
There are various types of car Insurance(s) and they include:
1. Third Party Insurance.
2. Liability Coverage.
3. Comprehensive Coverage.
1. Third-Party Insurance:-
As earlier stated in the article, the only insurance that’s been mandated for car owners in Nigeria is third-party insurance. Failure to obtain this could lead to a legal fine of 250,000 or a one-year sentence in prison. it ensures that in the eventuality of an accident, the affected individual is well catered for as a result of the presence of the car insurance.
2. Liability Coverage:-
This coverage is used when someone is hurt in an accident or other is damage to a property. Hence, to avoid payments of big bills, insurance helps to cover such occurrences.
3. Comprehensive Package:-
This covers third-party insurance in addition to any damages that occur on your car. Hence, it’s third-party insurance with the extra benefit of your safety and that of your car. It also covers the occurrence of theft or weather damage to the car.
Criteria for choosing the most suitable Car Insurance Policy
However the case may be, certain criteria must be looked at before a car insurance policy is agreed to.
1. Compare different Policies.
2. Consider the deductible.
3. Check the Insurer’s Reputation.
1. Compare different Policies:-
Because of the peculiarity of your car and the demands placed upon it, it would be important to cross-check the various types of policies that different insurance companies have and how they best fit into meeting the unique peculiarities of your vehicle.
2. Consider the deductible:-
A deductible is an amount of money that is to be paid before the insurance begins to kick in. Hence, a lower premium would retire a higher deductible and a higher premium would require a lower deductible.
3. Check the Insurer’s Reputation:-
The repute of the insurance company is to reinstate your trust in them when their precedence is praiseworthy. Hence there is the need to do background checks on the company to ensure that what they say they offer is exactly what they offer to ensure your safety and the safety of your vehicle.
Does a Nigerian Car Owner Need Car Insurance? The answer is Yes
Do you find this Article Helpful?
We have a dream of changing lives by providing everyone with valuable content and 100percent value , Astralhubs community is full of Love and passion to make Life comfortable for everyone in the world .We hope to see you join our community to be the first to get notifications on our new updated content or Blogpost and as well to ask questions.
Our faithful word remain-“we love you and there’s nothing you can do about it”