In the course of using a car, anything can go wrong on the road. While we don’t pray or wish for accidents/ damages, it is one of the unfortunate incidents that come with owning and driving a car. Order not to have an unexpectedly huge bill to pay in the event of an accident is why having car insurance is important.
In Ghana, car insurance is mandated by the law. According to the third party insurance Act 195, it is mandatory that owners of cars used on public roads acquire insurance to cover their liability to others. After buying that dream car of yours, the next important thing is to have it insured. It’s important to know that there are different types of insurance that you can sign up for in Ghana. These insurance types have different levels of coverage and cost. The benefits you get to enjoy when you make a claim are dependent on the type of insurance you have.
What Are The Types Of Insurance
In Ghana, there are broadly three types of insurance an individual can have. These includes:
- third-party only insurance
- third-party and other insurance
- comprehensive insurance.
Third Party Only Insurance in Ghana
This type of insurance provides protection against damages from accidents caused by you to a third party.
Advantages: It provides financial relief to the insured for damages caused to third-party vehicles.
Disadvantage: The insurance is limited to a car crash or collision-induced damage.
Third Party and other insurance (or Third Party Fire and Theft Car insurance) in Ghana
This type of insurance is similar to third-party-only car insurance. Insurance is provided for any damage caused to the vehicle or properties of a third party, but it also provides insurance for your own car if it’s stolen or damaged by fire. You can also be able to make a claim should your car be damaged by attempted theft.
Advantages: Both the insured and third party are covered during an accident
Disadvantage: The third party cover is limited to damage resulting from accidents in this package.
Comprehensive Insurance in Ghana
This type of insurance is often regarded as the best form of insurance, however, it’s pricey. Comprehensive insurance provides protection against a wide range of uncertainties including theft, accident, fire etc. Under comprehensive car insurance cover, both the insured and the third party get protected in the event of an accident.
Advantages:
– It provides insurance for both the insured and third parties.
-It provides comprehensive insurance for theft, fire, vandalism and collision-induced damage.
Disadvantages: It’s expensive
Cost Of Car Insurance In Ghana
The cost of car insurance varies depending on the insurance company. If you are interested in comprehensive insurance, you will need to get a quote from the insurance company. In most cases, you will be asked to present your car for a check-up. Also factors like year, model, brand etc can influence the price of comprehensive car insurance in Ghana.
In the case of third-party insurance, for saloon cars, it can cost up to GHC 221 a year. Different insurance companies have their rates.
Documents You Need To Get Your Car Insured In Ghana
There are certain documents that are required for you to get an insurance policy in Ghana, The common ones are;
- registration documents of the car
- Certificate of road-worthiness
- a valid driver’s license
- Identity card
It’s important that these documents remain valid throughout the course of your insurance duration. For instance, your claim for insurance may be nullified if your driver’s licence has expired when you had an accident.
Common Examples Of Car Insurance Companies In Ghana
Ghana is filled with various insurance companies offering insurance policies to Ghanaians at a competitive rate. The common examples are;
- Enterprise Group,
- Quality Insurance Company Limited
- Priority Insurance Company
- SIC insurance company
- Star Assurance.
- ALLIANZ Insurance.
- Hollard Insurance.
- Donewell Insurance.
- Serene Insurance
Why You Need To Have Your Car Insured In Ghana
- It’s mandatory under the law, hence having your car insured saves you from harassment from law enforcement agencies.
- It offers financial protection incurred from third-party damages.
- It saves the cost of repairs or the financial burden incurred from theft or vandalism.
- Depending on your insurance policy, a tracking system can be used to help you locate your car when it is stolen.
- In some insurance policies, free towing is provided when your car breaks down.
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