Car insurance is one of the essential insurance coverage every car owner must have. It doesn’t matter the particular car insurance you select from. The most important is ensuring you have car insurance that protects you from the financial risks associated with driving a car on the road.
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However, one of the major challenges car owners in Nigeria have is the issue of expensive insurance premiums. As such, this discourages a lot of car owners in Nigeria from purchasing car insurance. But is that the solution? Avoiding car insurance due to high costs is risky for car owners. Instead, the solution is to look for cheaper car insurance deals.
How do you get the best deals on car insurance in Nigeria? In this article, we take you through the helpful ways to get cheap car insurance premiums in Nigeria. To know more, keep reading below.
What Is Insurance Premium?
An insurance premium is a set amount you pay for the entirety of your insurance coverage. It’s the sum total of the required amount your insurance provider expects you to pay before you are given the certificate of insurance that guarantees your car has been insured.
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Different insurance companies in Nigeria have different insurance premiums. No two company has the same insurance premium, although there are similarities. The insurance premium of each company is determined by the company’s policy and the extent of the coverage they offer their customers.
Best Tips for Getting Good Insurance Premium Deals in Nigeria
Do you want cheaper car insurance premiums and wonder how to go about it? Here are useful tips to enable you to get cheaper deals for your car insurance.
- Compare Insurance Quotes
Before settling on a particular car insurance company in Nigeria, try as much as possible to compare their quotes with as many other companies as possible. There are over 20 insurance companies in Nigeria that offer auto insurance, find out their individual quotes before making a decision.
Note: Insurance premiums are not universal amongst companies. Each company sets theirs based on company policies and coverage.
- Seek Premium Discounts
Most car owners are not aware that they can seek discounts when getting their car insurance in Nigeria. The truth is that you can. However, insurance discounts are dependent on certain factors like vehicle type, age, driving experience, and insurance history. These are the things insurance companies consider before giving you insurance discounts.
- Increase Insurance Deductible
An insurance deductible is the amount of money you spend on your various car insurance coverages. Selecting a high deductible over time reduces the amount you pay as an insurance premium. On the other hand, selecting a lower price continues to increase your premium. However, ensure you’ll be able to foot the bill of a high deductible. If not, stick to the cheaper version.
- Select Only the Coverage You Need
One of the ways many spend a lot on car insurance is that they don’t carefully select the coverages they’ll need. Most people end up selecting everything on the comprehensive insurance plan, for instance. Reducing your coverage reduces the amount you’re expected to pay. So, before making your insurance payment, sift through the coverage plan and select the core coverages you’ll need.
- Consider Your Location During Estimation
The location of your vehicle plays a vital role when you’re selecting car insurance. If you live in the city, the cost of insurance will be higher compared to those who live in smaller towns. Why? Those living in the city are prone to accidents more than those living in smaller towns, and this affects their insurance premium.
- Regularly Review Insurance Coverage
Another essential way to reduce the cost of car insurance or get better deals is to review the insurance coverage consistently. Reviewing the coverage requires figuring out plans that you no longer want to hold on to and the ones you’re keeping.
Regularly reviewing your car insurance coverage helps you keep track of your insurance coverage and helps you reduce the cost of insurance over time.
Conclusion
In Western countries, other factors like credit score impact the chances of reducing your car insurance premium. However, in a country like Nigeria, where credit scores are almost inexistent, the above-listed tips are some of the most helpful ways to reduce your car insurance premium without having to cancel your car insurance completely. It’s a win-win situation.
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