Without a car insurance you should be ready to face embarrassment and issues from law enforcement on Nigeria roads. The federal government has made it compulsory for car owners to insure their vehicles.
For me going to government agencies like the internal revenue in your locality can make your car insurance process easy. There you can directly connect with insurance companies and get advice from government staff on the easy route.
As you should know by now, car insurance, like any other insurance cover, is used 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.
How to get car insurance in Nigeria
An auto insurance certificate is a compulsory document for all vehicle owners to have in Nigeria. So if you want to be law abiding and want to free of hitches while travelling in Nigeria, then you need to get your car insurance today.
There are different categories of car insurance in Nigeria, this includes; Third Party Insurance, Non Collision Coverage, Own or Collision Damage Cover, Personal Injury Protection, and Comprehensive Car Insurance Coverage.
Below are the steps you need to follow to get a proper car insurance in Nigeria this 2019.
- Research and Contact Insurance Companies in Nigeria: You will have to do a simple Google search on naicom.gov.ng (website of the regulatory agency for insurance companies in Nigeria, National Insurance Commission-NAICOM), to get a comprehensive list of registered companies that are currently in business.
- Choose a Type of Auto Insurance
- An annual premium between N5,000 and N15,000 will be charged on this policy depending on the type of vehicle.
- To buy comprehensive insurance for your vehicle, most insurance companies in Nigeria will charge between 4-5% of the total value of the vehicle for a one-year period.
Though, buying a third party insurance is the minimum legal requirement, a comprehensive insurance cover is an important investment for any motorist who does not want to be faced with unforeseen expenses for his/her vehicle.
If the vehicle is not yet yours, it is best to get Own or Collision Insurance coverage, which will help indemnify your vehicle in the event of a roadside accident caused by another driver.
Cost of Car Insurance in Nigeria 2024
We will have to look at the individual categories of car insurance to understand the cost system.
- Third Party Car Insurance: This is the simplest and most basic insurance cover available for vehicles in Nigeria. A sample of the cost shows Private All vehicles = ₦15,000. Commercial vehicles = Own Goods ₦20,000, Staff Bus ₦20,000, Trucks/General Cartage ₦100,000. If you don’t want to face embarrassment on the road, then opt for this insurance. How does it work? If Mr. A. whose vehicle was insured with Third-Party Vehicle Insurance gets into an accident with Mr. B (for which Mr. A is the victim of the accident) and damage is done to Mr. B’s vehicle as well as Mr. A’s vehicle too. Only the Vehicle of Mr. B will be repaired by the Insurance Company.
- Comprehensive Coverage: You will need to pay between 5-7% of the value of your car to subscribe to this plan. Despite the yearly cost, there is a good reason many opt for it. It pays for things like theft or weather damage to your car. Comprehensive Car Insurance gives you peace of mind knowing you’re covered in many situations.
I hope you found this guide helpful and wish you a smooth ride across the most populous black nation.
