Imagine this scenario: you are cruising down a bumpy, narrow, and typically untarred Nigerian road and your car immediately gets hit from the back. What would be your reaction? Obviously, the first thing is to check if you have not sustained any injuries, and then the next is to get down angrily from your car to check the damage. In doing so, you see your car’s tail lights are bashed in completely, without any means of severing the damage. Your next course of action will probably be to call out the offender (if he is still there waiting) to pay for the damage he has caused to your vehicle.
At this point, there would be scuffles and heated exchanges of words to determine who was at fault for the accident, but what would be on your mind is that he must make amends to you. Then you get to find out he doesn’t have the bare minimum third-party insurance coverage for the damage and says he will be paying “small small”. This would lead to another boat load of issues and might even get to the point of becoming a legal matter if not handled carefully, and with this, you will probably spend more out of your pockets to get a remedy, and there is no indication the matter will be resolved in your favour.
Imagine if it were you who had caused the accident and had no insurance coverage. How would you handle it? What would you do to mitigate the loss you caused? This is the reason it is advised for everyone to have a car insurance policy. In practice, the average driver does not naturally care about such matters, viewing insurance as an unnecessary expense, but thankfully, attitudes have shifted in that direction over time. People have begun to insure themselves and their vehicles, which is a commendable reform.
So what is a motor insurance policy? And why is it so important?
An automobile insurance policy protects the owner against any monetary losses sustained as a result of an unanticipated event, such as an accident, natural disaster, theft, etc. The insurance company is responsible for covering any damage to the insured vehicle, the policyholder, or third parties. Like any other insurance coverage, a monthly fee known as a “premium” must be paid, which varies from company to company. Why is having insurance coverage so essential?
It Is Mandated By Law.
Most people are not aware that it is mandatory to have a third-party insurance policy in Nigeria that protects any other party apart from the owner from damage caused by an accident, which could be medical expenses or any other cost affected by the damage caused. As aforementioned, it is not of general knowledge or people refuse to adhere to it, but it aids in spheres when it comes to protection. When you purchase third-party insurance, you can have peace of mind knowing that if you cause an auto accident or injury, your insurance company will cover it if specified.
It Allows For Overall Protection Of Yourself And Others
No matter who is in the car, an unplanned incident like a collision can occur anywhere, anytime, and to anyone. To protect yourself and others is among the most crucial justifications for purchasing automobile insurance. For instance, if you are in an accident and don’t have trustworthy insurance to cover your expenses, you will be responsible for paying a high cost to treat any injuries you or another person may have sustained. The auto insurance contract usually guarantees that any medical costs incurred as a result of an accident-related injury will be covered. The insurance provider will cover all of your medical expenses, from surgery to hospital stays, inevitably saving you money.
It Helps Safeguard Your Vehicle
Your car, motorcycle, or other personal vehicle is largely protected by a motor insurance policy. If you have a comprehensive automobile insurance policy, you may be sure that your insurance company will pay for any damage to your car that results from an accident. They will make sure you won’t have to pay for the costs of repairing and restoring your vehicle, whether you need to send it in for repairs after an accident, your car was stolen, or it was damaged by a natural disaster such as a fire, riot, explosion, strike, etc.
It Covers Third Party Damage
Still unclear as to why purchasing automobile insurance is necessary? This coverage will guarantee that the provider will pay your repair costs, medical bills, etc. if you are involved in an accident that involves a third party, such as a pedestrian, another car, or someone else’s property. Without complete insurance coverage, you will be responsible for covering any third-party losses, including medical expenses, property damage, and car repairs. Auto insurance coverage minimizes your exposure while safeguarding your funds.
It Covers Legal Costs And Fees
Accident victims will frequently try to file a lawsuit against you for their losses or injuries. The automobile insurance will shield your wallet from these costs if you are involved in a lawsuit. It would make sure that any sizable costs associated with a case brought against you for a traffic accident will be covered because it is well known how draining legal fees can be on your finances.
Frequently Asked Questions
How much is car insurance in Nigeria?
The majority of insurance companies in Nigeria charge between 3% and 7% of your vehicle’s annual value to purchase a comprehensive insurance policy. The cost of purchasing the car is the value assigned to it. Some insurance policies charge extra fees for extra services like vehicle tracking systems. Only owners of comprehensive car insurance policies are eligible for this.
Where can I get my car insured in Nigeria?
A simple Google search will help with this. There are quite a number of insurance companies in the country. All you have to do is do an extensive search and contact the ones you deem as appropriate for you. You will be given all the necessary information regarding the policy form and the type of auto insurance you wish to get.