Auto Insurance
Choosing Insurance Policy
Most insurance companies in Nigeria offer three major types of auto insurance plan for private and commercial use. By law it is required that all vehicles have one of the three insurance plans. The three plans are listed below:
Third Party Only: This is the basic and lowest insurance plan available in the auto insurance market today and it is the least cover plan required by law. It is the cheapest and only covers your liability against the third parties by compensating them in case of bodily injury or property damage.
Third Party, Theft & Fire: This insurance plan is the next to the Third Party Only; it includes all the benefits of the Third Party Only and additional benefits of protecting your car against theft and fire damage.
Comprehensive: Comprehensive Insurance is categorized as Basic, Standard and Plus. This is the top of the insurance plan and it contains all the benefits of the Third Party Only, Third Party Theft & Fire, Accidental losses or damage cover to your car and additional benefits which varies within the Insurance Companies and the category of Comprehensive insurance cover you obtain for your car. The additional benefits are listed below:
Authorized Repair Limit: This is the cost limit of the repair you can make on your car after involvement in an accident. This limit is a percentage of what you pay for your car insurance per year. If the repair is less that this cost limit, there will be no need to make a claim you only need to submit the receipt of the repair to your insurer and you will be reimbursed by your insurer accordingly.
Excess Buyback: Making a claim comes with a cost. Excess Buyback benefit exempts you from paying the cost.
Free Tracking Device: Tracker is helpful in case of car a theft and the installation is important and required.
Replacement Vehicle: Some insurers provide you a replacement vehicle and others equivalent daily transport cost in cash for the period your car is undergoing repair.
Loss of Personal Effect: Potential losses of personal belongings are covered with this benefit.
Medical Bill: Your medical treatment bill due to accident is covered with this benefit.
Flood, Storm, Tempest: You are uncertain when your car will be struck with one of these natural disasters. This benefit gets you covered.
Strike, Riots, Civil Commotion: This benefit put you on the safe side in any of these circumstances.
Towing Intra-state: Towing intra-city benefit enables your reimbursement by your insurer to a certain limit when you need to tow your car within the city of your residence.
Towing Inter-state: Towing inter-state benefit enables your reimbursement by your insurer to a certain limit when you need towing from state to the other.