Who Should Buy Car Insurance And Why?

It is important to have car insurance, as this type of cover can protect you from having to pay out a large sum in order to repair a damaged vehicle (or more than one vehicle) if you are involved in a car accident.

In some cases, the financial cost of being in a car accident can even surpass the expense of vehicle repair. This can occur if injury and / or death occurred due to an accident that you caused. Therefore, car insurance policies that are comprehensive will also provide cover for this type of liability.

Anyone that owns a vehicle should purchase car insurance. Having at least a third party car insurance policy is compulsory in Nigeria. However, for those who wish to have an additional layer of protection, then a comprehensive car insurance policy may be the better alternative.

It is important to have the proper amount of car insurance cover for your specific needs. All situations are different, so determining the ideal cover limit, as well as type of cover, will help you to narrow down your options.

In Nigeria, United States it is required that you have at least a third party car insurance policy. However, for those vehicle owners who wish to also have cover for potential liability, a comprehensive policy may be the better option.

When choosing a car insurance company, be sure that you have verified whether the insurer is registered and can offer an authentic policy. You will also want to ensure that the insurer is strong financially, and that is has a positive reputation for paying out its claims.

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How Much Does Car Insurance Cost?

There are a number of variables that will determine the cost of your car insurance. These will include the following:

Type of Cover – The type of cover you choose may be either private or commercial. Therefore, if you drive your car in the operation of a business, you may need to obtain a commercial car insurance policy. Otherwise, if you drive your vehicle solely for personal use, then a private policy would be your choice.

Vehicle Make and Model – The make and model of your vehicle will also be a key factor in how much the policy costs. For example, the price of cover can often differ significantly, depending on whether you own a car, truck, SUV, van, or luxury vehicle. The cost can also vary, depending on whether your vehicle is new or pre-owned.

Insurance Plan – The amount of cover that you purchase for your plan is yet another component of the overall cost. For instance, cost can differ between a plan that is comprehensive versus third party only cover.

Car Insurance Provider – The provider that you purchase car insurance from can also make a difference. Often, the cost can differ a great deal from one insurance company to another – even for the exact same amount and type of cover. So, just as you would shop for any other important item, it is important to shop and compare cover prices before you make your final decision.

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What Is Car Insurance?

Car insurance in Nigeria mandatory and therefore everyone that owns a car should make it a priority to be familiar with car insurance policies. Any time that you are on the road and traveling in a vehicle, you face the risk of being in a car accident. In many instances, the damage that results from a car accident can be quite high – especially if injury or death has occurred. This is why it is so important and mandatory to have car insurance.

Car insurance is a type of cover that will protect you financially in the event of a car accident. In return for a regular premium payment, the car insurance company will pay for some or all of the damage to the other vehicles involved. It may also pay out more, depending on the type of cover you own.

There are different forms of car insurance cover that you can purchase in Nigeria. The one you choose will depend on the extent of insurance cover you require. Cover options include:

Third Party Cover Only – With third party cover only, the insurance policy will provide cover for accidental damage to a third party vehicle (or vehicles), up to a specified limit. It will also cover damage to third party property, up to a set limit.

In addition, these types of car insurance policies will provide cover for unlimited – but reasonable – liability for death and / or bodily injury to third parties. It is required that Nigerians have at minimum third party car insurance cover.

Comprehensive Cover – If you want to obtain additional protection, then a comprehensive policy can be a better option. This is because these policies provide everything that a third party policy offers, as well as protection from any personal loss. Therefore, a comprehensive car insurance policy will provide cover for damage to third party vehicles, as well as damage to third party property, up to a certain policy limit.

As with third party cover, a comprehensive car insurance policy will also cover accidental damage to the insured vehicle. This type of cover will also insure for loss or damage to the insured vehicle that is a result of fire or theft, as well as for damage that results from malicious acts, strikes, riots, and / or civil commotion. As with third party cover, a comprehensive policy will also provide unlimited, but reasonable, liability for death and / or bodily injuries to third parties.

It is important to have a good understanding of how much your car insurance policy will pay in the result of an accident. This is because, even with car insurance cover, you could still end up having to pay a deductible excess. For example, if your car insurance policy will only cover loss of up to N1,000,000 and the resulting damage and / or liability is more, you may be responsible for paying the difference.

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