The cost of purchasing most cars in recent times has become increasingly high. Considering the current exchange rate of the dollar to the Naira, it might be synonymous with selling an arm and a leg. yet, most people undertake the task of getting a car either via the route of savings, a loan or whichever means the individual considers best fitting for His pocket.
With this level of sacrifice, there is a need for a security measure to ensure that no unforeseen circumstance ever occurs to the car that either renders the sacrifice of no effect or incurs more expenses on the owner in terms of repairs.
This is where Car Insurance comes into validation and with the various types of vehicles that exist, one must be careful to find out which best suits his needs and can enable saving on expenses whilst not being penny-wise and pound-foolish.
This article seeks to open your eyes to the various types of Car Insurance and the one that stands out of the crowd.
Before we begin, let’s begin by understanding what car insurance is.
A Car Insurance is a contract between a vehicle owner and an insurance company. The owner oars a premiums and in return, the insurance company commits to providing financial protection against losses that might occur due to an accident or other unforeseen circumstances.
These unforeseen circumstances can best be divided into the following categories. They include:
1. Accidents.
2. Theft.
3. Injury 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.
How to choose the best Car Insurance?
Another important issue to take note of is the key considerations that must be noted before car insurance is taken.
They include :
1. The value of the car.
2. Legal Requirements.
3. Personal Security.
1. The Value of the Car:- A car with a higher cost would require more capital(premium) for its insurance and safety.
2. The Legal Requirements:- Certain requirements must be possessed before one is permitted to own a car one of which is car insurance. In the absence of which the defaulting individual can be indicted with a payment of 250,000 or one year imprisonment.
3. Personal Security:- When your car is insured it ensures you are seen irrespective of the eventualities that occur with the car. You have a backup plan.
Types of Car Insurance
There are primarily 3 types of Car Insurance 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.
From these three insurances, it is clear that the best of them all is the comprehensive package which ensures the safety of the third party affected by any incidence and your safety. Speak about a total package indeed.
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”