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Types Of Car Insurance In Nigeria And How Each Can Benefit You

Life is full of risks and uncertainties and this is an inevitable fact. This means that it’s important to protect things that are valuable to us like our cars. In Nigeria there are varieties of car insurance covers; Depending on your needs, their individual functions vary on what areas they cover and what areas they don’t. Knowing this helps us to become more flexible in deciding what we uniquely need, thereby making it more affordable and yet get the best premium insurance cover available. Various insurance covers are:

Act Only Car Insurance Cover: This can be refereed also as a Motor third-party insurance or third-party liability cover, which is sometimes also referred to as the ‘act only’ cover, is a statutory requirement under the Motor Vehicles Act. … However, it covers the insured’s legal liability for death/disability of third-party loss or damage to third-party property.
Advantage: It provides protection against damages from accidents, even if you are at fault.

Comprehensive Car Insurance Cover: This is the insurance coverage that protects your car against damage not resulting from a collision, as well as from theft. It covers a wide array of events that can damage your car, including vandalism, fires, and more.
Advantage:  This is one of the best protection you can get for your car which is better than Third-party that only covers damages to others as the result of an accident that was deemed your fault.

Third Party Only Car Insurance Cover: If you get into an accident that was your fault, your insurance will cover losses to any third party vehicles or property, but damage to your own car will not be covered. Similarly, if your car is stolen or damaged in a fire, your insurer will not pay out to replace or repair it.
Advantage: This type of insurance policy does not provide any benefit to the insured (The person buying the insurance). However, it covers the insured’s legal liability for death/disability of third-party loss or damage to third-party property.

Third Party, Fire and Theft Car Insurance Cover: In this case, you get the same cover for any third party and their property in the event of an accident that you are deemed liable for, but it also includes insurance for your own car if it’s stolen or damaged by fire. Plus, you would also be able to make a claim should your car be damaged by an attempted theft.
Advantage: This provides cover for damage caused to other parties and their property in the event that you are responsible for an accident. It also covers the cost if your car is stolen or damaged in the event of a hijacking, theft or fire.

Just in case you are a little bit confused on which insurance policy best suits your budget or life-style, click here and fill the form you will see, an experienced insurance representative will guide you through. Alternatively, feel free to chat with us.

About Nonso Okafor

I've worked as a technical support representative in major auto centers in Nigeria for more than twenty years. I have dealt with a variety of problems in my capacity as a customer service representative and auto diagnostics expert. I'm committed to assisting people in properly maintaining their automobiles and in appreciating this magnificent innovation known as an automobile.

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3 comments

  1. Onalo, Duncan Egbunu

    Good morning, I was driving along warri / Benin express road when my vehicle fell, scraped the tarred ground into Bush ,due to potholes in the road; Yet the insurance company is telling me that, they are not aware of my insurance paper since I didn’t come to their office myself to process what was processed at the motor license office of the state. A third party insurance policy.
    They are claiming it’s from agents or touts and this set of people can’t operate without them giving them the nod from Delta State Motor License Office. Although, their claims now is that, they’re not being settled properly by those at the license office. In fact, I don’t know how this concerns me their customer and complainant.
    This is one of the reason people hate anything to do with insurance companies. They don’t seem to be straight in their dealings.
    I need them to act accordingly. But I’m yet to be attended to. This accident took place in a Month back.
    So what do you advice me, to do next?

    • Ebelechukwu Aligbe

      @ Onalo Mark, have you tried to verify you vehicle insurance? It does not matter if you brought the insurance on the moon, as long as it is a valid insurance contract, the insurance company will settle the claim. You can check the validity of your insurance by going to Ask NIID and see if your insurance is active. There are fake insurance agent selling nothing but a piece of paper the tissue paper has more value than. If you bought such not insurance company will settle your claim.

  2. Insurance these days are becoming more dynamics than ever. I was told by an insurance company which I won’t disclose it’s name that there are car premiums that last for just a day.

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