Car Insurance: Cost of Third Party Car Insurance Companies In Nigeria

Car Insurance – In Nigeria, a lot of people have wrong, or different ideas about car insurance policies.

While some have a wrong idea and do not see it as important because they see it as an unnecessary expense where the insurance company gets all the money.

Infoexpert24 understands that car insurance, like any other insurance cover, is used to protect the individual and cover any financial loss which may occur from operating regular motor vehicles such as, cars, buses, motorcycles, etc, and special vehicle types like tractors, road rollers, excavators, etc.

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Do you know that if you get into a car accident, and your car gets damaged that you don’t have to worry about how to get a new car in Nigeria? But the problem is that many Nigerians are not informed about car insurance in Nigeria or they just don’t care to register.

Car insurance is mostly for the owner’s benefit because it helps to protect the owner against any financial loss incurred from having and operating an automobile in Nigeria.

Why do you need third-party Car insurance in Nigeria?

Although the third party insurance only covers the third party involved, it helps to save the insured from accruing the costs of getting the third party’s car fixed or replaced because the insurance company covers the costs. Other reasons are:

Having it protects you from getting a fine or being punished by Nigerian law.
It is cheaper and more affordable than the comprehensive auto policy in Nigeria.
It offers protection against any liability resulting from the damages to a third party.
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How to get car insurance in Nigeria

A. Research and Contact Insurance Companies in Nigeria

You will have to do a simple Google search on naicom.gov.ng (website of the regulatory agency for insurance companies in Nigeria, National Insurance Commission-NAICOM), to get a comprehensive list of registered companies that are currently in business.

Some of these companies include:

FBN General Insurance
AIICO Insurance Plc
Old Mutual Nigeria
Cornerstone Insurance
Consolidated Hallmark Insurance
AXA Mansard Insurance Plc
Leadway Assurance Plc
Zenith Insurance Plc
B. Choose a Type of Auto Insurance

After  you decide on the Insurance you want, then contact them, you will be required to fill some forms, which will include the following:

KYC Form
Motor Proposal Form
Motor Insurance Physical Inspection Form
In the form, you will most likely be offered two (2) types of car policies. They are:

Third-Party Car Insurance

This is compulsory in Nigeria and is the most popular type of cover. Popularly called “Police let me go”, this policy covers death, accidental bodily injury, and damage to the property of a third party.

C. An annual premium between N5,000 and N10,000 will be charged on this policy depending on the type of vehicle.

Comprehensive Car Insurance
This policy is not compulsory under Nigerian law and will offer full comprehensive vehicle insurance that covers all risks related to owning and driving a vehicle.

These risks range from loss or damage to insured vehicles as a result of fire, theft, vandalism, accidental damage, or collision. The coverage also includes legal liability for death, bodily injury, or damage to the property of third parties arising from the use of insured vehicles.

D. To buy comprehensive insurance for your vehicle, most insurance companies in Nigeria will charge between 4-5% of the total value of the vehicle for a one-year period.

Authorized dealers may also give comprehensive auto insurance cover as an option when buying a vehicle. You will have to be sure there is an established relationship between the dealer and an insurance company.

Some insurance companies also offer the vehicle owner a car-tracking device which will range from N2,500,000 and above.

Once you have purchased a policy, the insurance company will issue you a certificate that should contain details about your policy.

You will need to confirm your policy to be sure of its authenticity. This can be done by visiting www.askniid.org and following the instructions laid out.

Infoexpert24 understands that once your policy is authentic, your vehicle number, policy number, and vehicle type will appear but if it’s fake, no information will appear meaning your details are not present in their database.