Driving in Nigeria can feel like an extreme sport with the bad roads and recklessness of other road users. With the high rate of road accidents in Nigeria, car insurance is the best way to protect yourself, passengers, and the public from damage and loss.
Choosing a car insurance plan can feel overwhelming, given the many options and technicalities. Still, I’ve summarised all you need to know about auto insurance and listed the top insurance companies and their policies.
What is Car Insurance and Why Do You Need One?
Car insurance, also known as auto or vehicle insurance, is a contract between you and an insurance company that provides financial protection for your car against unexpected events. This insurance covers the costs of accidents, theft, fire, natural disasters, and other unforeseen damages, so you’re not left with a huge financial burden when something goes wrong.
Car insurance protects you and other road users. For example, if a driver is involved in an accident, your insurance policy can cover the damage to another person’s vehicle or property and medical costs if someone is injured.
Depending on the type of car insurance policy you choose, you can have different levels of coverage.
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Types of Car (Auto) Insurance in Nigeria
According to the Federal Road Safety Service Commission’s (FRSC) website, there are three main types of car insurance in Nigeria:
Third-Party Insurance
This is the basic, legally required type of car insurance in Nigeria and many other countries. It covers damages you cause to other people’s property or injuries from an accident. Third-party insurance does not cover damages or losses to the insured’s vehicle caused by accidents, natural disasters, or theft.
Comprehensive Car Insurance
The comprehensive car insurance covers third-party liabilities and damages to your vehicle due to accidents, fire, theft, and even natural disasters. It offers a broader range of protection and is ideal for peace of mind.
Third-Party Fire-Theft Insurance
Third-party fire-theft insurance only covers liability and damages caused by fire damage to and theft of the vehicle.
Here are five leading insurance providers renowned for offering some of the best insurance plans in Nigeria.
1. AIICO Insurance Plc
With a consistent track record of prompt claims settlement and strong risk management practices, AIICO Insurance Plc is a longstanding player in the Nigerian Insurance market. They offer a variety of plans, from comprehensive and third-party auto insurance to content, health, and travel insurance policies.
Their digital platforms simplify everything from getting your policy to tracking and filing claims.
Insurance Policy and Pricing
Comprehensive auto insurance: 5% per Year, i.e., 5% of your vehicle’s insured value per year. For instance, if your car is valued at 1,000,000, the annual premium would be 50,000.
Third-Party Auto Insurance Policy: The price of this policy ranges from 15,000 to 100,000 per year, depending on your package and vehicle type.
Get a Quote: AIICO PLC
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