Auto Insurance Procedure, requirements and conditions in Nigeria – This article will explain in full details all you need to about getting a car or auto insurance coverage.
Insurance is a standard requirement in many countries across the World. You may find it hard to come to terms with why you have to give up some cash to pay for one monthly, but it is essential. In Nigeria, it is not a requirement but should be regarded as a necessity.
The road is an uncertain place, you may be able to control your car but you cannot control other drivers on it. Therefore, you need a company to rely on , if you have any need of getting repairs that cost a dime and cannot be fished out of your wallet at the time. Hence you need an auto insurance.
What is an Auto Insurance?
An auto insurance is a policy purchased by vehicle owners to take care of costs associated with auto accidents. Therefore, when you purchase an auto insurance, you pay little sums of money called premiums on a periodic basis to the auto insurance company. The company will thus cover the cost of damage (or most of the cost) when your vehicle is involved in an accident or the damage on the other vehicle.
Auto insurance premiums vary from vehicle to vehicle and depend on other factors:
- Years of driving experiences
- accident and violation history and many others.
What coverage applies to in getting an Auto Insurances:
You can get coverage for different things and this applies to different types of premiums:
- Property: damage or theft to your car
- Liability: damage or responsibility to another car
- Medical: cost of treating others involved in accident with your car, this might include rehabilitation or even funeral expenses.
Kinds of Property Damage Auto Insurance
An auto insurance pays for the repairs of your vehicle after an accident but as said before it depends on the coverage you select. Generally there are two kinds of property Damage auto insurance; comprehensive and collision coverage.
This kind of auto insurance covers anything apart from collision. It covers fire, vandalism, theft, deer, or even damage from the weather.
This kind of auto insurance covers all damage resulting from collision of your vehicle with another vehicle, trees, mailboxes, or any other object in general. It comes into play when you are to blame for an accident or when you have no idea who damaged your car.
Auto Insurance does not cover mechanical repairs
Any kind of maintenance repairs needed by your car is fixed by you alone. This includes everything from wear and tear and as much as a bad workmanship done on your car.
Selecting the Right Auto Insurance Cover in Nigeria
The Auto insurance coverage in Nigeria has different definitions to them. Here we have basically two kinds of insurance policies:
Third Part Auto Insurance:
This may also be called the collision auto insurance but it only covers for any damage caused by you to another car or the property of another. It is compulsory to have these kind of insurance coverage before you can use the Nigerian roads. These kind of premiums may range from N5,000 upwards depending on your kind of vehicle.
2. Comprehensive Auto Insurance:
This insurance covers every damage that comes to your vehicle with relation to owning and driving it. It covers fire, theft, vandalism accidental damage and collision on your car or that of others. This is not a compulsory auto insurance cover. To purchase these auto insurance company, you might be required to pay about 4-5% of the value of your car.
Best Insurance companies in Nigeria
There are many good insurance companies in Nigeria that offer you trusted and efficient services. You can quickly visit naicom.gov.ng to see the comprehensive list of insurance companies in Nigeria. However, some of them include:
- AIICO Insurance Plc
- Leadway Assurance Plc
- Old Mutual Nigeria
- Cornerstone Insurance
- Consolidated Hallmark Insurance
- Zenith Insurance Plc
- Axa Mansard Insurance Plc
- IGI Insurance Plc
Requirements for getting an Auto Insurance coverage in Nigeria
The documents required for getting your Insurance coverage in Nigeria may vary from company to company. However, the general requirements include:
- Vehicle documents
- Inspection reports on the condition of the vehicle
- A proof of identity which is your Driver’s license etc.
Getting your Auto Insurance
The process for purchasing your Auto Insurance in Nigeria is pretty much the same, but you must ensure you are using a genuine insurance company. In addition, you can begin the process for your insurance coverage by phone or a visit to the insurance company.
Once you have contacted the insurance company, you will need to fill out some forms and present the required documents, this forms include:
- KYC Form
- Motor Proposal Form
- Motor Insurance Physical Inspection Form
After this, you will receive insurance quotations for you to pick the kind of policy you wish to purchase. Select the one you want. Once you have purchased the policy, you will received a certificate containing details about the policy you purchased.
To check for the authenticity of your policy, you can visit the website www.askniid.org and follow the instructions there to view if these policy exists in their database.
Auto Insurance is a necessity that you should purchase if you own a vehicle. You never know where you need the lumpy sums that come from having one.