Imagine the debt and/or unexpected financial expenses you could incur if you suddenly ran into a ditch, or into another vehicle, or probably your car was stolen. No one prays or wishes for an accident of any sort, but the fact is that accidents happen, and you have to brace yourself for them in advance. One of the ways to prepare yourself in the incident of any car damage is to get a Car Insurance.
- Understanding Car Insurance
Most Nigerians tend to belittle car insurance compared to other forms of insurance like health or life insurance. However, it is equally important. According to Nigerian law, every car owner is mandated to have at least a Third Party Insurance, which is under the car insurance policy. By definition, car insurance also called auto insurance or vehicle insurance is insurance that protects you against financial loss in the event of an accident or theft or fire.
Popular Types Of Car Insurance
- Third-Party Property Damage Insurance
Rather than bear the cost that comes up when you damage the car of another person, a third party property damage will help foot the bill of whatsoever expenses that may come up. However, no benefit comes to you or your car, in this type of insurance. This is the commonest kind of car insurance policy, and it is mandated by Nigerian law.
- Third Party Theft And Fire Insurance
This insurance has added benefits unlike the first one above. In addition to bearing the cost incurred on the third party (i.e the person whose car you damage), a third-party theft and fire insurance give you coverage if your car gets stolen or destroyed by fire.
- Comprehensive Car Insurance
Just as the name implies, this car insurance policy gives total coverage of any expenses incurred both on you as well as the third party involved. It is often more expensive than the other kinds of car insurance types.
Factors Influencing The Rates Charged By Car Insurance Company
There are various factors that determine the rate you get to pay to get your car insured. These factors include:
- Your driving history or record
- Your age/ maturity in driving
- How often you use your car i.e how many miles you often cover.
- Your car model and year.
- Your location. Crime rates such as theft, and vandalism are often higher in certain locations compared to others. This tends to influence insurance rates.
- The car insurance types you want.
Also check:
- Best Car Insurance Companies In Nigeria
- Tips For Getting The Best Price On Auto Insurance
- How To Get Vehicle Finance In Nigeria – Top List Of Auto-Finance Companies
- Vehicle Registration In Nigeria Guide In Nigeria – Easy Tips
List of Cheap Car Insurance Companies Nigeria
For the purpose of this article, we would be using a 2014 Lexus RX which costs about 5M NGN per year for this particular article. In no particular order, below are a list of the cheapest car insurance companies in Nigeria:
- Alliance Insurance Company
Alliance Insurance company offers three plans which are; Standard, Classic and Premium Plans. Using our model car, comprehensive car insurance comes at the rate of 150, 000 NGN. Third-party insurance comes at a rate of 5, 000 NGN. Comprehensive insurance on a commercial vehicle comes at the rate of 225, 000 NGN.
With Alliance insurance, ladies and male above 45 get a discount of 15% on the premium. Also, you can get 15% of your premium as cashback after 24 months without a claim. They also offer other benefits such as free towing.
- Custodian Car Insurance
Using our model car, comprehensive car insurance comes at the rate of 150, 000 NGN. Third-party insurance comes at a rate of 5, 000 NGN for private car insurance while commercial vehicle insurance comes at 7, 500 NGN.
Comprehensive insurance on a commercial vehicle comes at the rate of 212, 500 NGN.
- Nsia Assurance
For Nigeria Sovereign Investment Authority (NSIA) Assurance, commercial vehicles’ comprehensive car insurance comes at the rate of 225, 000 NGN whereas private vehicles’ car insurance comes at the rate of 150, 000 NGN. Third party insurance comes at a rate of 5, 000 NGN for private car insurance while commercial vehicle insurance comes at 7, 500 NGN.
- Law Union And Rock Car Insurance:
Using our model car, comprehensive car insurance comes at the rate of 140, 000 NGN. Third party insurance comes at a rate of 5, 000 NGN for private car insurance while commercial vehicle insurance comes at 7, 500 NGN.
Comprehensive insurance on a commercial vehicle comes at the rate of 140, 000 NGN
- Mutual Benefits Assurance:
Mutual Benefits Assurance has impressive services in prompt delivery when you make a claim. Using our 2018 Lexus RX car model, comprehensive car insurance comes at the rate on a private car comes at 162, 500 NGN. Third party insurance comes at a rate of 5, 000 NGN for private car insurance while commercial vehicle insurance comes at 7, 500 NGN.
Comprehensive insurance on a commercial vehicle comes at the rate of 200, 000 NGN
- AIICO Insurance American International
Another cheap car insurance company is AIICO Insurance American International. Using our model car, comprehensive car insurance comes at the rate of 162, 500 NGN. Third party insurance comes at a rate of 5, 000 NGN for private car insurance while commercial vehicle insurance comes at 7, 500 NGN.
Comprehensive insurance on a commercial vehicle comes at the rate of 187, 500 NGN.
- Zenith Insurance
Using our model car, comprehensive car insurance comes at the rate of 175, 000 NGN. Third-party insurance comes at a rate of 5, 000 NGN for private car insurance while commercial vehicle insurance comes at 7, 500 NGN
Comprehensive insurance on a commercial vehicle comes at the rate of 200, 000 NGN.
- Leadway Assurance
With Leadway Assurance, you can be sure of excellent services, security and prompt response when you make a claim. On a private car, using our Lexus RX model, comprehensive car insurance comes at the rate of 200, 000 NGN. Third-party insurance comes at a rate of 5, 000 NGN for private car insurance while commercial vehicle insurance comes at 7, 500 NGN.
Comprehensive insurance on a commercial vehicle comes at the rate of 300, 000 NGN
CONCLUSION
Car insurance is a necessity for our safety. I dare say, it’s an investment we would be glad we made. To save ourselves from undue financial burden, get that car insured! You can always contact us at http://carmart.ng for up-to-date articles on cars as well as buying and selling your cars
Have 1 million naira and above to Buy or Sell Cars In Nigeria? Check carlots.ng
All rights reserved. Reproduction, publication, broadcasting, rewriting, or redistribution of this material and other digital content on carmart.ng is strictly prohibited without prior express written permission from Carmart Nigeria - Contact: [email protected]
