Many Nigerians shy away from buying car insurance as they consider it to be an unnecessary expense. However, insurance is actually compulsory by law, and serves as invaluable protection much like any other insurance. It’s not just about the legality though; much like Cartrack’s superior vehicle recovery gives you peace of mind, auto insurance lessens the worry that theft or an accident could ruin you financially.
Insurance is designed to put you back in to the same position you were in before the loss or damage occurred. This is done either financially, where you receive an amount equivalent to the cost of the asset, or the asset itself is replaced or repaired.
When deciding whether to take insurance or not, consider this: if your car was damaged beyond repair, could you afford to replace it? And while you’re thinking about that, here’s what you need to know when buying car insurance.
Googling Nigerian car insurance will help you learn more about the various vehicle insurance companies. For a comprehensive overview of the registered companies check the National Insurance Commission at naicom.gov.ng., which is the website for the regulatory agency for insurance companies in Nigeria –(NAICOM).
Some of these companies include:
Once you’ve done your research, you’ll have to determine which insurance company best serves your needs. Some of the factors that you should consider are:
Before taking out the insurance, you will have to complete a:
When filling out these forms, you will be offered two types of car policies:
As this type of insurance is compulsory in Nigeria, it is the most popular one, covering injury from accidents, death and damage to property that does not belong to you. Depending on the type of vehicle you have, you could be charged an annual premium of between N5,000 and N10,000.
As the name suggests, comprehensive insurance covers all risks related to owning and driving a vehicle. However, this policy is not compulsory, but it is a good option if you have a new car, or a car you are still paying for. This policy includes covers loss or damage to insured vehicles resulting from:
There is also legal liability for:
Once you have an insurance policy, your insurance company will give you a certificate that contains details about your policy. However, you need to confirm the authenticity of this policy first – you can do this by visiting www.askniid.org and following the instructions as advised. If your policy is fake, no information will appear once you have entered your policy number, vehicle number and vehicle type.
As an extra precaution, some insurance companies will also offer vehicle owners tracking devices that can cost N2,500,000 and above. Cartrack offers leading vehicle recovery services, with our superior technology and services ensuring that our dedicated team can offer you peace of mind around-the-clock. Contact us today to enjoy our world-class offering.