Most countries/states mandates vehicle owners to have a basic personal auto insurance, this type of insurance provides vehicle owners with some financial protection in case of an accident or other unforeseen circumstances. The question on the lips of many is this – Is this insurance enough? Are there other options that are truly helpful? In this article we would be teaching you how car/auto/vehicle insurance works and what types of coverage are available and also the best plan for you.
Table of Contents
What is Auto Insurance?
Auto Insurance is also known as motor insurance and this is simply a contract between you (a vehicle owner) and an insurance company in which you agree to pay premiums in exchange for protection against financial losses stemming from an accident or other damage to the vehicle.
For those who are new into insurance and its terminologies, you may be wondering what premium is, don’t worry we are here to provide you with all the information you need.
Premiums is what you pay monthly, quarterly, biannually or yearly to maintain a car insurance policy. Another term associated with insurance is Deductibles.
Deductibles are amounts you pay when you file a claim.
Benefits of Getting Auto Insurance
Auto/Car insurance is designed to protect you against financial losses if you’re involved in an accident or the vehicle is damaged in some way.
What Coverage Does Auto Insurance Cover?
Auto insurance can offer coverage for:
- Liability- Vehicle damages, including your car or another driver’s vehicle
- Property- Property damage or bodily injuries caused by an accident
- Medical- Medical bills and/or funeral expenses associated with injuries sustained in an accident
Earlier in this article we informed you that most countries/states especially developed countries requires you to have a basic personal auto insurance and laws vary.
Auto insurance coverage is unique to the buyer of the insurance policy, this simply means that the insurance coverage are priced individually (a la carte) to let the insurance policy buyer customize coverage amounts to suit his/her exact needs and budget.
Insurance policies are generally issued for six-month or one-year timeframes and are renewable. The insurance company sends a notice when it’s time to renew the policy and pay your premium.
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What other types of auto insurance coverage are typical?
It is important you know that most basic, legally mandated auto insurance covers only the damage your car causes, it does not cover damage to your own car. To cover your own car, you are advised to consider these optional coverages:
- Collision reimburses you for damage to your car that occurs as a result of a collision with another vehicle or other object—e.g., a tree or guardrail—when you’re at fault. While collision coverage will not reimburse you for mechanical failure or normal wear-and-tear on your car, it will cover damage from potholes or from rolling your car.
- Comprehensive provides coverage against theft and damage caused by an incident other than a collision, such as fire, flood, vandalism, hail, falling rocks or trees and other hazards—even getting hit by an asteroid!
- Glass Coverage provides coverage from windshield damage, which is common. Some auto policies include no-deductible glass coverage, which also includes side windows, rear windows and glass sunroofs. Or you can buy supplemental glass coverage.
Cost of Auto Insurance
Many persons would like to know what it cost to purchase an auto insurance policy before committing to the budget most suitable for them. There are two primary costs associated with purchasing car insurance, namely:
- Premiums
- Deductibles
Auto Insurance Premiums & Deductibles
Auto insurance premiums varies due to various factors such as age, gender, years of driving experience, accident and moving violation history, among others.
Insurance deductible is the amount you have to pay when filing a claim before the insurance company will pay out anything to you for damages. So, for example, your policy may have a $1500 or $15000 deductible. Agreeing to a higher deductible can result in a lower premium but you’d have to be reasonably sure you could cover the higher amount if you need to file a claim.
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How to Purchase Auto Insurance Online
You can easily get instant auto insurance quote online and proceed to purchase auto insurance online, simply follow the guide below
Can auto insurance be purchased online?
Is it cheaper to buy car insurance online?
Is it good to buy auto insurance online?
What determines the price of an auto insurance policy?
The amount you’ll pay for auto insurance is affected by a number of very different factors, some of which are listed below. Note that, not all companies use the same factors, here’s a list of what commonly determines the price you pay on your auto policy.
- Driving record
- Cost of car
- Location
- Age
- Gender
- Frequency of car usage among other factors
List of Auto Insurance Companies in Nigeria and Website (Online)
Allianz Nigeria Insurance
Allianz Nigeria Insurance Ltd is a composite Insurance company licensed to transact Life and Non-Life Insurance business in Nigeria, delivering a range of retail products such as Motor, Life, Home Insurance an corporate products to more than 30,000 customers.
Website (Get Quote Online)- https://www.allianz.ng
Custodian and Allied Car Insurance
Custodian & Allied Insurance is a wholly owned Nigerian Company and provide some of the best car insurance services in Nigeria.
Website (Get Quote Online)- https://custodianplc.com.ng
Old Mutual Nigeria
Old Mutual Life and Old Mutual General are part of the Old Mutual Limited group in Nigeria, a premium African financial services group that offers life protection, general insurance, savings, investments and lending services to 11.3 million customers in 14 countries across Africa and China.
Website (Get Quote Online)- https://www.oldmutual.com.ng
Zenith Insurance Plc
Zenith Insurance is one of Nigeria’s leading insurance institutions. Customers satisfaction and loyalty are a testament to their consistent superior performance.
Website (Get Quote Online)- https://www.zenithinsurance.com.ng
Industrial and General Car Insurance
Industrial And General Insurance Plc (IGI) was first incorporated as a private limited liability company on 31 October 1991 and later re-registered as a public limited liability company in 2007. It commenced business in January 1992 as a composite insurer to transact the business of Life and General insurance, including Pensions and Special Risks.
Website (Get Quote Online)– https://www.iginigeria.com
Leadway Assurance Company Limited
LEADWAY ASSURANCE COMPANY LIMITED (‘LEADWAY’) is one of Nigeria’s foremost insurance service companies, with a reputation for service efficiency and customer reliability.
Website (Get Quote Online)- https://www.leadway.com
Cornerstone Insurance
Cornerstone Insurance is licensed and re-certified by the National Insurance Commission (NAICOM) to do both General and Life businesses.
Website (Get Quote Online)- https://cornerstone.com.ng
Consolidated Hallmark Insurance
Following a merger in 2007, Consolidated Hallmark Insurance Plc emerged as one of the top ten General Business and Special Risk Insurance underwriters in Nigeria. In the last twelve years, the company has played a leadership role in the underwriting of key transactions in Aviation, Oil & Gas, Marine Cargo and Hull Business as well as in Motor insurance business.
Website (Get Quote Online)- https://chiplc.com
AXA Mansard Car insurance
AXA Mansard is a member of the AXA Group, the worldwide leader in insurance and asset management with 166,000 employees serving 107 million clients in 64 countries.
Website (Get Quote Online)- https://www.axamansard.com
FBN General Insurance
FBN General Insurance Limited is a Limited Liability Company licensed to transact general insurance business in Nigeria. The Company is a member of The Sanlam Group, South Africa and provides general insurance coverage to both individual and corporate clients.
Website (Get Quote Online)- https://www.fbngeneralinsurance.com
AIICO Insurance PLC
Established in 1963, AIICO Insurance Plc (NSE Ticker: “AIICO”) is a financial services group with market-leading positions in its key business lines; Insurance, Health Maintenance and Asset Management.
Website (Get Quote Online)- https://www.aiicoplc.com
Third Party Insurance In Nigeria
What is third party insurance in Nigeria?
Third party insurance is the one that covers the insured liability for death or injury to a third party or loss/ damage of a third party’s property in the event of an accident. Third-party motor insurance is a compulsory insurance policy in Nigeria.
Does third party insurance cover my car?
No, Third-Party Property Damage does not cover your car. It only covers the costs of damage your car causes to someone else’s car or property.
Conclusion
There are so many car insurance companies online that you can choose from, this will help you easily protect yourself from the various risk that comes with driving, all you need to do is go through the different insurance options/quotes online and select what works best for your specific needs.
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