What Is Auto Insurance? How Can I Get One For My Car?

Much like every other form of insurance, auto insurance provides invaluable protection for vehicle-related incidences. Auto insurance, also called car insurance, serves to protect the individual and cover any financial loss which may occur from operating regular motor vehicles such as cars, buses, motorcycles, etc, and special vehicle types like tractors, road rollers, excavators, etc.

Many Nigerians are often reluctant to take an insurance policy for their vehicle, this is often because they feel it is unnecessary. However, getting auto insurance serves a lot of benefits. Here are a few:

Benefits Of Getting Auto Insurance

1. It saves the cost of repairs or financial burden incurred from damages done to and/or caused by your vehicle. 
2. It lessens the fear that theft or an accident to your vehicle can ruin you financially.
3. It saves you from being harassed by law-enforcing bodies. This is because it is mandatory in Nigeria to have at least a third party insurance.

Types Of Auto Insurance

1. Third Party Only Car Insurance Cover

Third Party Only Car insurance, provides insurance that covers losses caused to third-party vehicles or properties. A limit of this type of insurance cover is that damages to your own car are not accounted for, even if it’s stolen or vandalized.

2. Third Party, Fire and Theft Car Insurance

This type of insurance is similar to the 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.

3. Comprehensive Car Insurance Cover

This type of insurance is often regarded as the best form of insurance. Like the name comprehensive implies, it 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. 

How To Get Auto Insurance For Your Vehicle

Getting auto insurance can be a daunting endeavour, especially for first-timers. However, it’s simple if you know how to go about it. In this article, you will discover simple steps on how to get an insurance policy for your vehicle.

1. Do A Research On Auto Insurance Company

No one gets a credible insurance policy from the sky, it usually comes from verified auto insurance companies. This is why the first step is for you to take some time to research functioning auto insurance companies. To make your search easier, simply go to www.naicom.gov.ng; here you will find a list of registered auto insurance agencies in Nigeria. This website is owned by National Insurance Commission-NAICOM, the regulatory agency for insurance companies in Nigeria.

Below are some of the registered insurance companies in Nigeria:

1. Alliance Insurance Company
2. Nigeria Sovereign Investment Authority (NSIA) Assurance.
3. Law Union And Rock Car Insurance
4. Mutual Benefits Insurance
5. AIICO Insurance American International
6. Leadway Assurance

2. Make A Choice For The Insurance Company That Fits Your Needs

During your research, you will come in contact with various companies with different offers and slightly different policies of operations. You will have to narrow it down to the one that best fits your needs. There are some factors to consider when making a choice. These are;

• How much cover do you require relative to what the company provides?
• Which insurance company guarantees the best returns over the long run?
• Does the company have positive reviews and feedback from clients?
• Does the auto-insurance company offer a money back option when you don’t claim?
• Is there an option to combine preferences such as car and bike insurance?
• Do you get a discount if you take vehicle, home and buildings insurance?
• Does the auto insurance company offer vehicle tracking and telematics and discounts on premiums?

3. Choose A Type Of Auto Insurance

Once you have researched and narrowed it down to the insurance company you prefer, the next point of action is to reach out to them. You can reach out to them through the contact details listed on their website or you go to their office directly. 

You will most likely be asked to fill some forms such as:

• KYC Form
• Motor Proposal Form
• Motor Insurance Physical Inspection Form

In one of the forms, you will be asked to choose the type of auto insurance you want, either comprehensive or third party insurance.

4. Make The Necessary Payments

After submitting the required documents, certain checks and cross-examination will be done on your car depending on the type of insurance you are going for. Once every detail is verified and accepted, you need to make the necessary payments. For most third party insurance covers, the annual premium is often 5,000-15,000 NGN. However, the premium for comprehensive insurance depends on the value of the car insured.

5. Collect And Verify Your Insurance Certificate

Once all bills are paid and an agreement is reached, the auto insurance company will offer you a certificate that contains the details of your policy and coverage. If you deem it necessary, you can verify the authenticity of your policy on www.askniid.org. You will have to input your vehicle number and insurance policy details. If your policy is authentic; your vehicle number, policy number and vehicle type will appear. If nothing appears, it means your details are not on the database.

CONCLUSION

Auto-insurance is a must-have in Nigeria to safely drive on the road. The steps above will make securing an auto insurance policy easier and faster for you.