Every risk associated with driving or owning a vehicle is covered by comprehensive car insurance. As a result, it is regarded as one of the most costly insurance products. However, the cost of comprehensive insurance for a specific vehicle is mostly determined by the car’s purchase price.
In Nigeria, most insurance firms charge between 3% and 7% of the entire value of your vehicle per year to purchase a comprehensive insurance coverage. The cost of purchasing the car is the value assigned to it. Some insurance policies charge a fee for extra services such as car monitoring devices. Only comprehensive car insurance policyholders are eligible for this.
A certificate of insurance will be sent to you once you have completed the purchase of your comprehensive vehicle insurance policy. This verifies your eligibility to file a claim in the event of an accident with the car.
How much do you pay for comprehensive insurance?
In 2017, comprehensive insurance coverage cost an average of $160 per year. This is less expensive than most other methods of protection. Though this amount is likely to include group coverage, which are often less expensive than individual policies. The cost of your policy is determined by the vehicle’s “actual cash value” (ACV). This is the cost of replacing the car when depreciation is taken into account. As a result, higher-value vehicles are more expensive to insure, although the cost of your policy is highly dependent on your deductible.
How much is comprehensive insurance Lagos Nigeria?
Most insurance firms in Nigeria would charge between 4-5 percent of the total value of the car for a one-year term to purchase comprehensive insurance for your vehicle.
Third Party cover
This is the most common sort of insurance in Nigeria, as it covers injuries from accidents, death, and damage to property that does not belong to you. You may be charged a yearly premium of N5,000 to N10,000 depending on the sort of vehicle you own.
Comprehensive Insurance
Comprehensive insurance, as the name implies, covers all risks associated with owning and operating a car. This policy isn’t required, but it’s a smart idea if you have a new automobile or one that you’re still paying for. This coverage covers loss or damage to covered cars as a result of the following:
Is comprehensive full coverage?
Is comprehensive insurance a whole package? When numerous types of coverage are acquired combined, they are sometimes referred to as full coverage insurance. Liability and collision insurance are also included in full coverage insurance, as well as uninsured driver coverage in some areas.
How does comprehensive car insurance work?
Consider whether you can live without your automobile if it is written off or stolen when selecting which sort of insurance is right for you. Consider whether you can afford to pay for damage to someone else’s car in the event of an accident.
Third party versus comprehensive insurance
- CTP (compulsory third party) insurance is included in the cost of your vehicle registration (except in New South Wales, where you buy it separately). Green slip insurance is another name for it. If you damage or kill someone in an automobile accident, it covers the costs of compensation claims.
- When you’re at fault in an accident, third-party property insurance covers damage to other people’s property, including cars.
- Property damage and theft are covered by third-party property, fire, and theft insurance, which also protects your car if it is stolen or damaged by fire.
- Comprehensive insurance covers both your automobile and other cars in the event of an accident, even if you are at fault. It also protects you if your car is stolen or destroyed due to fire, water, or vandalism.
How your car is valued
You can determine how your car is valued with comprehensive insurance. The worth of your car is the amount you’ll collect if it’s totaled or stolen:
- The amount your car would have sold for if it hadn’t been involved in the accident.
You won’t know how much you’ll get if you claim if you use the market value, and you won’t be able to adjust the amount. You’ll pay a greater premium if you employ an agreed-upon value.
Is Marine a insurance?
Marine insurance is a form of policy that protects cargo vessels, ships, terminals, and other structures used to convey commodities from one point of origin to another from damage or loss. Marine insurance covers loss or damage to a shipment/cargo/ship when it is aground, as well as risks such as sinking, collision, fire, weather conditions, navigation mistakes, theft, jettison, incorrect carrier stowage, hook damage, strikes, war, and natural disasters.
How much is third party insurance in Nigeria?
Third-party insurance is a form of car insurance coverage that protects the insured from loss or damage to a third party.
Third-Party Insurance in Nigeria
The Motor Vehicle (Third Party) Insurance Act of 1950 makes third-party insurance mandatory in Nigeria. It is one of the six types of insurance required by the Federal Republic of Nigeria’s laws.
Group Life Insurance, Health Care Professional Indemnity Insurance, Insurance of Public Buildings, Insurance of Buildings in Construction, and Employers Liability Insurance are some of the other mandatory insurances.
The third-party car insurance policy is the bare minimum of coverage required by law for vehicles operating on Nigerian roadways. The policy covers the insured in the event of a third-party death or injury caused by the use of the vehicle. The Insurance Act of 2003 broadens the scope of third-party insurance coverage to include coverage for damage or losses to a third party’s property up to N1 million. It is also illegal to drive without at least a third-party auto insurance policy.
How to Get Third-Party Car Insurance in Nigeria
Auto insurance policies in Nigeria are sold by any company that has a National Insurance Commission (NAICOM) license as a general or composite insurance company, as in the case of comprehensive car insurance. To get an insurance coverage, you must complete the following forms:
Third-Party Car Insurance is provided by a number of insurance firms in Nigeria.
Cost of Third-Party Car Insurance
Third-party insurance is less expensive in Nigeria than comprehensive insurance coverage. Annual insurance premiums range from N5,000 to N10,000, depending on the type of car.
You will receive a certificate of insurance once you have completed the purchase of your comprehensive auto insurance policy. This verifies your eligibility to file a claim in the event of an accident with the car.
Confirming the Authenticity of your Third Party Car Insurance
There are a lot of phony insurance agents out there who take advantage of a client’s lack of knowledge. Given this, it is not enough to simply obtain your insurance certificate and relax – you must also verify the certificate’s authenticity. This can be accomplished in one of two ways:
- The Nigerian Interbank Settlement System (NIBSS) is a system that allows banks in Nigeria to settle their accounts with each other. NIBSS launched the USSD code for authenticating auto insurance policies in collaboration with the Nigerian Insurers Association (NIA). Simply dial *565*11# and provide your vehicle registration number to verify the validity of your car insurance that’s all there is to it!
Why Do You Need Third-Party Insurance?
Only a third party may benefit from the insurance coverage. However, it saves the insurance money on the expense of third-party damage repair or replacement. The following are some of the reasons why you should get third-party insurance.
- Third-Party Car Insurance protects you from being held liable for damages to a third party.
Conclusion
Third-party car insurance has aided in the development of a responsible attitude among road users and has saved many people money in the event of an accident.
Many people, however, are still unaware of the advantages of having a third-party insurance policy aside from the fact that it protects them from legal repercussions.
To provide you that peace of mind, you must first comprehend the policy and terms of the insurance contract. This will also assist you with the claims process.
What is covered under comprehensive motor insurance?
If your car is stolen or damaged by something other than a collision, comprehensive coverage can assist pay for repairs or replacement. Theft and damage caused by vandalism and natural disasters, such as fallen objects, fire, hail, water, or animals, are usually covered by comprehensive insurance.
What is a comprehensive deductible?
A comprehensive deductible, as a reminder, is the amount you must pay out-of-pocket when submitting a comprehensive insurance claim. For example, if a hailstorm damages your automobile $5,000 and your deductible is $1,000, your insurance company will only pay $4,000 for repairs.