Frequently Asked Questions

1Why Do You Have to Have Auto Insurance in Nigeria?

Just one of the many reasons car owners have to have liability coverage is due to the fact that the policy will help cover the other party if you are found at fault for an auto accident. The driver at fault is always the one who must pay for the damages of everyone, so if you cause an accident and didn’t have insurance, you probably couldn’t cover both your damages and the damages the other party faced. For this reason alone, auto insurance is probably the most important type of insurance out there.

2Is autosinsurance.com.ng Services Free?

Autosinsurance.com.ng is a proud partner to Key Verticals Ltd. All insurance policies are directly underwritten by our NAICOM (National Insurance Commission) licensed Insurance partners and Underwriters who provide you with insurance policies for auto (third party and comprehensive).

Needless to say the services provides by Autosinsurance.com.ng is totally free to all using the platform to compare quotes

35 Reasons Why Every Nigerian Should Make Auto Insurance A Necessity

Many Nigerians don’t like the idea of buying auto insurance. If you fall into this category, you would agree that this is because auto insurance is seen as unnecessary, but the reverse is the case. What must have birthed this negative perception is the inability of automobile owners to find a good car insurance company in Nigeria.

However, there are many reasons why you still need auto insurance. Learning about them will help you make the right choice. These are five reasons why you should consider registering with the best car insurance company in Nigeria:

1. Anxiety It’s normal to become anxious about getting a dent on your newly purchased car. Or on another occasion, you might be worried about getting hit while trying to avoid a careless driver. Moreover, because of the poor condition of some roads in the different parts of the country, car insurance in Nigeria can provide you with a hundred percent cover. Having a care insurance will reduce the anxiety you feel while driving.

2. A Requirement By Law For your vehicle to be road worthy, you must obtain insurance. This is according to the Road Traffic Act of 1950 which states that all automobile users should have an auto insurance. With auto insurance companies proliferating the modern era, you are advised to register with the best car insurance company in Nigeria.

3. A Time Saver Getting involved in a car accident can be traumatic for victims especially when you don’t earn a lot monthly. If you have an auto insurance, you will have less to worry about in the event of an accident. You already need to worry about things like writing a report, paying for unplanned medical bills, and replacing damaged properties with personal monetary compensations. When you have insurance in one of the many good auto insurance companies in Nigeria, you can save yourself this stress which can crop into your time. Let auto insurance companies take care of these things for you.

4. Support Irrespective of the damage done to the vehicle in a road accident, vehicle insurance in Nigeria can cover these damages. If third party cars are destroyed, the bill will be covered by vehicle insurance in Nigeria depending on the package you choose.

You should make it a point of duty to register with an auto insurance company. Don't wait until the law catches up with you for being a defaulter. Don’t wait till after an accident ruins your vehicle or the vehicle of a third party before you make a move. Paying for such damages from your account will cost more than you can imagine. You might feel that the cost of premiums is more, but in the long run, auto insurance is the best way to save yourself from unexpected expenses.

4Which Insurance Policy Is Right For You? Comprehensive Or Third-Party Insurance?
Having a personal car in Nigeria is a luxury. This is because making a purchase from a dealer is typically up front, and a standard car can cost you millions of naira. It's one thing to buy a car, and then it's another thing to maintain and protect it. This is why you need auto insurance in Nigeria. There are several policies for auto insurance in Nigeria. If you're not careful, an agent can convince you to accept autos insurance quotes that aren't suitable for you. If you want to buy auto insurance in Nigeria, you need to learn the basics about the two main policies in the country: third party vehicle insurance in Nigeria and comprehensive auto insurance. Third Party Insurance In Nigeria This insurance package is also known as Act Only insurance. It will cover any liability suffered by a third party if you are at fault during an accident. It doesn’t cover for any damage to your vehicle if you are responsible for the accident. The court reserves the right to award a liability to the third-party, and you will be required to pay anything that is awarded. Comprehensive Insurance in Nigeria Unlike the third party insurance, a comprehensive insurance policy covers the damage on your car. This is as long as the damage is as a result of some events covered by the insurance policy. This package covers for personal accidents, damage resulting from natural disasters, theft and third-party liability. This policy extensively provides an end to end coverage ensuring less stress on you, the policy holder. You can decide to add other coverages for specifics like engine protector, medical expenses, personal belongings, etc. Benefits of A Comprehensive Policy People call this policy a package policy because it includes coverage for damages to third party liability, car, and personal accident risk. The fact that it allows you to opt for add-ons makes it even more ideal for policy holders. If you do not have comprehensive coverage, you will not be able to lay an insurance claim for your car. If you own a high-valued car, it is essential that you opt for this policy instead of the third-party insurance coverage. It will provide additional protection for your car and save you the stress of paying for third-party liability from your purse. No one prays for an accident, but they are unpredictable and unexpected. The trauma of the accident is only one side of the coin. You still need to worry about the expenses you will incur as well. Comprehensive insurance comes with a catch. You’d need to pay higher premiums than what you’d be required to pay if you opt for a third party insurance. It should only be your option when you have the money to afford it. If you don’t have the money, then you should go for the third party policy. Before you accept autos insurance quotes, make sure you weigh all the benefits and disadvantages. Read all the clauses in the policy before you make your choice.
5Is Car Insurance in Nigeria Important?

As a car owner in Nigeria, it is extremely important that you have auto insurance. You may be one of the many people who feel like you shouldn’t have car insurance unless you get into an automobile accident, but it is so much better to be prepared and safe than unprepared and injured.

Out of all the types of insurance out there, you are more likely to need your autos insurance the most. You are always at risk when driving and you never know when an accident could happen. Whether it is someone else’s fault, a user error, or a malfunction with your car, you deserve to be taken care of! At the very least, most drivers are actually required to have liability coverage as a minimum. By law in Nigeria, you must have at least minimum liability coverage in case an accident occurs. If you don’t have any liability coverage at all, you aren’t even allowed to possess a license to drive. So if you searched “insurance for my car” and don’t have anything yet, it’s way past time to make sure you’re covered!

6Why You Should Move From Third Party To Comprehensive Insurance Policy
Even though there are so many auto insurance companies in Nigeria, a lot of car owners purchase car insurance policy because it is an offence to do otherwise. If they have their way, they will never insure their car. One of the reasons is that the level of illiteracy in Nigeria is high and many of them are car owners. The illiterate car owners are not well informed about the benefits of insurance. So, auto insurance companies need to educate Nigerians more on the benefits of car insurance. Since most owners purchase car insurance policy because it is mandatory, they opt for third party policy that is way cheaper than comprehensive. Maybe if they know some of the benefits of comprehensive insurance policy, there will be higher demand for it. Replacement of a stolen car With comprehensive car insurance policy, your car will be replaced if it gets stolen. You don’t have to buy the policy from the best car insurance company in Nigeria to enjoy this. Maybe you bought the car on loan or you saved for several years to be able to buy the car. Imagine if such a car gets stolen. You will be in such a financial mess and you might never be the same again. Why not upgrade your policy to comprehensive now? Due to competitions among insurance companies, there are several other additional benefits. You might never know, comprehensive insurance might not be as expensive as you thought. You can take the first step now. Get quotes for auto insurance today. Repair for animal collision damages It is a common occurrence in Nigeria for herdsmen to cross expressways with their cattle and a lot of cars have been damaged by animal collisions. Most times, the owner of the car ends up fixing his car. This should not be a problem for you with your comprehensive insurance policy. Your insurance company will fix it for you. However, you can’t enjoy that with third party car insurance even if your insurer is the best car insurance company in Nigeria. Get quotes for auto insurance and compare the quotes to what you stand to gain. You will realize that comprehensive car insurance is your best bet. Repair for weather damages If you leave your car at home and a tornado picks up some stones and drop them on your windscreen or other parts of your car. Who would you blame for that? Whose fault is it? But with comprehensive insurance policy, you can sleep easy. Just approach your insurer and your car will be fixed. Repairs for flood or fire damages When your car is damaged by either fire or flood, you are covered. It will be repaired for you as long as you are on comprehensive insurance policy. Think of it, those whose car got burnt never saw it coming. Why you can’t be too careful is that fire moves fast from car to car. It could start from another car. Consider the benefits above and make a better choice. This is very important especially if you drive a luxury car. Comprehensive insurance policy is not an option. It is a necessity.
7Perception Of Nigerians To Vehicle Insurance
In Nigeria, it is compulsory to have a vehicle insurance policy before putting your vehicle on the road. However, it is quite unfortunate that a lot of Nigerians do not believe in car insurance in Nigeria. When they relocate to other countries, they are very willing to purchase a vehicle insurance policy but when they get back to Nigeria, they become unwilling. The general belief of Nigerians about vehicle insurance The only logical explanation to lack of interest in car insurance in Nigeria is distrust for Nigerian auto insurance companies. A lot of Nigerians believe that most auto insurance companies deliberately delay payments and they look for holes in claims just to avoid settlements. The only reason they buy vehicle insurance policy is because it is an offence to drive without a vehicle insurance policy. There are two main categories of vehicle insurance – comprehensive and third party. Third party vehicle insurance in Nigeria is much cheaper than comprehensive so over 75 percent of car owners opt for third party vehicle insurance in Nigeria. Consequences The general consequence of the preference of third party insurance policy is that so many damaged vehicles that should have been repaired by insurance companies are repaired by the owners. This is because third party insurance only covers third party vehicles. How third party car insurance works This is how it works. The first party is you, the car owner and may be the driver. The insurance company is the second party. The third party is the person whose vehicle you damaged or the person you hit. This is where a lot of people get it wrong. Before seeking claims, it has to be established that the damage was your fault. It is then that your insurance company can pay. It is the process of establishing this fact that Nigerians see as deliberate delay. And when your insurance company finds out that the damage was not your fault, they won’t pay. Third party insurance coverage does not cover the damage on your own car. This can be a big disadvantage if you encounter an accident and your car gets seriously damaged. One funny thing about drivers is that they keep thinking they can’t have any accident as long as they are very careful. They only come to terms with reality when they encounter one. Think about this, a lot of people make use of drivers. If you are very careful to avoid accidents, what about your driver? This is why you should consider upgrading your insurance policy to comprehensive insurance policy. There are many reliable insurance companies in Nigeria now and they will all pay settlement but there is no insurance company that won’t carry out its own verification first. Some reliable insurance companies are Consolidated Hallmark Insurance PLC, Law Union and Rock Insurance PLC, Staco Insurance PLC and Adic Insurance.
8Third Party Vehicle Insurance Policy In Nigeria
Losses and risks are an inevitable part of human existence and experience. They cut across investments, properties and, workplace events. They come with both mild and devastating effects. But no matter how little their impacts are they have negative effects on man. They have tremendous impacts on society and society. But there are known programmed ways to cushion these effects. There are well-crafted novel approaches to help reduce their burdens on man. One of such known programs and well-crafted approach is insurance. Insurance is the most efficient and effective approach to reducing their effects. It monetizes risks and losses, thus eliminating their impacts. Insurance is a novel approach of protection against risks and losses. Insurance involves individuals paying a premium to secure against self-losses. Here the premium paid serves as indemnity to make claims in situations of loss. It is a contract where individuals receive financial protections against defined losses. The financial protection could come in form of replacement or monetary reimbursement. It is possible to insure properties, investments, and even human life. There are many types of insurance policies available to man. But in Nigeria, the most common is auto or vehicle insurance. Auto insurance companies in Nigeria offer two predominant type of insurance. They are the comprehensive and third party vehicle insurance. On this post, we will discuss third party vehicle insurance in Nigeria. Third party vehicle insurance in Nigeria This type of car insurance in Nigeria is compulsory for all car owners. This policy helps protect car owners against losses caused to other road users. For example, if while driving and you kill a pedestrian, third party policy covers you. If your car by accident breaks into another car causing damages, this policy covers you. If your car damages someone’s properties while driving, this policy covers you. It takes away losses incurred from damaging people's properties or life while driving. Although auto insurance companies offer this service in Nigeria, it is less beneficial. The majority of people do not know the meaning of third party vehicle insurance. The truth is the majority of people see third party vehicle insurance in Nigeria as a document. Rather than claim damages, people argue when scenarios covered by this policy arise. Other than make claims, Nigerians end up in the police station. Thus, spending more money than they should. The resultant effects are the issuance of fake policies to drivers across the nation. We advise that you buy your insurance policies from registered auto insurance companies. Valid insurance policies save cost associated with damages caused to others while driving. Car insurance in Nigeria is cheap and affordable such that car owners can afford them. Insuring your car helps you to reduce cost in times of accidents. Car insurance companies that offer this policy only pay for damages caused to others. They do not cover the cost involved in repairing your car. So ensure to find out the defined losses and risks covered by any type of insurance policy before you sign up.