Car Insurance – All You Need To Know About Auto Insurance

Car Insurance And How to Get Started.

I know many have been hearing about car insurance without really understanding what it means. So here in this article, we are going to take you gradually by starting from the basis, for a better knowledge. Let’s proceed as we, first of all, explain what insurance is all about.

Insurance is an act of insuring or giving a guarantee to compensate one for a damage, illness, death or specified loss in exchange for payment of a specified premium. In a more simplified term, it means for a chosen company to bear the responsibilities of your loss even if it was solely your fault just by paying a little token based on the company policy. To narrow our thought of today, we will be talking specifically about car insurance.

car insurance

Photo credit: Nairaland

Why Must I Insure My Car?

Most of us in Nigeria have become too religious, avoid doing what is right by hiding under the umbrella of spirituality and saying “I have anointed my car against any accident” forgetting that knowledge is profitable to man. Below are the reasons why you need to go for auto insurance as a car owner.

  1. It is a law. It was commanded by the government for all drivers in especially in Nigeria to have at least, a third party insurance before being permitted to drive on the road. As a good citizen that you are, neglecting this law becomes illegal for you to drive your car.
  2. Insurance takes responsibilities for your car loss. Many think they are too road perfect to have an accident. But what about the other drivers on the same road with you? They can bring the accident to you. Your car can even be stolen, totally damaged and any other unexpected event might just claim your car. When you are insured, the company fixes this and your car is back.
  3. It gives rental reimbursement services. Imagine your damaged car that might take quite a while to fix and you really need to move around with your car. That wouldn’t be a problem at all because the company will be paying for your rental car until your car is set for use.
  4. It preserves your investment. Many are still trekking the whole of Nigeria until tomorrow, just for the fear of losing their long-term saving for an unexpected event that might claim the car. Chill and enjoy your money by buying your desired car because insurance got your back!
  5. It serves as part of your health insurance. Once any insured vehicle get involved in an accident, the company will not only take care of the car but also handle accident-related medical issues to some certain stage.
  6. Prevents you from bankruptcy. One can lose both the car and any other savings for handling the repairs, treatment, court case, etc. no matter how the collision is serious, an insured car owner, can never spend on these.
  7. It overs great peace. You will no longer need to be a watch guard to your car at night and deprive yourself of some sleep. Once you are insured, you move with a high level of confidence on the road knowing that you have a solid backup.

Types of Car Insurance

Car Insurance offers different coverage system based on the type chosen. Before you go on to insure your car, take few minutes to read about their different packages in order to know which one suites you. car insurance

  • Collision Insurance: This anchors any damages done to your car once it collided with another vehicle.

 

  • Medical payments coverage: This package covers hospital bills of treatment arising from an accident.
  • Liability Coverage: The company takes care of damages done to others when you have been proven legally to be responsible for the accident.
  • Uninsured & Underinsured motorist insurance: This type of car insurance protects you when you are involved in an accident that wasn’t due to your fault but which the other driver insurance couldn’t cover. It also protects against hit-and-run.
  • Comprehensive insurance: This covers a wide range of coverage to your vehicle. It takes responsibility not just when you collided with another vehicle but also any damage done to your car by animal, vandalism, or any other incidents factors.
  • Gap Insurance: This package help drivers to pay car loans after being stolen or a total loss.
  • Towing and labour insurance: This accessible for those who already have a comprehensive type of car insurance. It pays you back for the labour cost to repair your vehicle and for towing.
  • Personal injury protection insurance: This covers a medical expenses and loss of income.
  • Classic car insurance: Provides coverage that was specifically designed for the special needs of classic cars.

How to Get Your Car Insured.

Having seen the various classes of car insurance available to you, you have to carefully decide which of the package that will suit you. Once you have done that, next vital step will be to contact a registered insurance company. For a genuine insurance policy, avoid all those you see around licensing offices else you might just be losing your time and money to frauds. To save yourself from such, you can make do with any of these insurance companies in Nigeria;

  • Old Mutual Nigeria
  • Consolidated Hallmark Insurance
  • IGI Insurance
  • AIICO Insurance Plc
  • Cornerstone Insurance
  • Mansard Insurance Plc
  • Leadway Assurance Plc
  • Zenith Insurance Plc
  • Adic Insurance Ltd
  • Industrial & General Insurance Plc

After buying your insurance from a genuine insurance company, endeavour to verify your policy by simply sending your policy number * your vehicle plate number as a message to 33125. For instance: AEY/201/520305*JK542AB and send to 33125. You will be replied telling you that your vehicle is insured. You can also verify your policy via this website: www.askniid.org.

Car Insurance Rates And Factors.

The following are factors for determining your charges in an insurance company

  • Location
  • Frequency of car usage
  • Age
  • The type of car
  • Gender
  • Type of insurance coverage
  • Your driving record

After putting all these into consideration, the company will then come up with a calculated rate for your car. Then you can choose a payment plan which might be annual, semi-annual, quarterly or monthly.

The advantages of insuring your car are too enormous to be neglected. Get a free price list from any good car insurance company as listed earlier and get a coverage for your vehicle as soon as possible.

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