In this article I will be putting you through on how to get your car insurance in Nigeria, what is needed to apply for your car insurance.
Here in Nigeria, many people always have wrong perceptions about insurance policies, whether Health Insurance, Auto Insurance, House Insurance and many more. The do not think of insurance because they think it is not needed.
Moreover, auto insurance, just like any other insurance company, it is used to protect the individual and cover their 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.
Also, an auto insurance certificate is a compulsory document need for all vehicle owners to have in Nigeria.
Below are steps needed to get a proper insurance cover in Nigeria
1. Research and Contact Insurance Companies in Nigeria
In this you just need your phone to do some simple Google search on naicom.gov.ng (A 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.
Here are some of the most Insurance Companies which are:
Zenith Insurance Plc
FBN General Insurance
AXA Mansard Insurance Plc
Leadway Assurance Plc
Old Mutual Nigeria
AIICO Insurance Plc
Cornerstone Insurance
Consolidated Hallmark Insurance
2. You Have To Choose a Type of Auto Insurance You Want
After you might have done your research on the list of insurance companies in Nigeria and decide on which company you want to buy a policy from, you will have to get in contact with them through phone, email or pay a visit to their nearest office address.
You will have to fill some forms, which will include the following:
>>KYC Form
>>Motor Proposal Form
>>Motor Insurance Physical Inspection Form
In the form they are likely to give you two (2) types of car policies. This policy are:
A. Third Party Auto Insurance
In this, it is necessary in Nigeria and is the most popular type of cover. Popularly known as “Police let me go”, this policy covers death, accidental bodily injury and damage to the property of a third party.
3. An annual premium between N10,000 and N15,000 will be charged on this policy depending on the type of vehicle.
B. Comprehensive Auto Insurance
This policy is not compulsory under the Nigerian law and will offer full comprehensive vehicle insurance that covers all risks related to owning and driving a vehicle.
These risks range from loss or damage to insured vehicles as a result of fire, theft, vandalism, accidental damage, or collision. The coverage also includes legal liability for death, bodily injury or damage to the property of third parties arising from the use of insured vehicles.
4. To buy comprehensive insurance for your vehicle, most insurance companies in Nigeria will charge between 5-7% of the total value of the vehicle for a one-year period.
Authorised dealers may also give comprehensive auto insurance cover as an option when buying a vehicle. You will have to be sure there is an established relationship between the dealer and an insurance company.
Some insurance companies are likely offer the vehicle owner a car-tracking device which will range from N3,700,000 and above.
Once you are done in purchasing your policy, the insurance company will issue you a certificate which should contain details about your policy.
You will have to confirm your policy to be sure of its authenticity. You can do this by visiting www.askniid.org and then follow their guidelines or instructions given to you.
By entering your vehicle number or insurance policy, you can confirm if your policy is genuine or not. If your policy is authentic, your vehicle number, policy number and vehicle type will appear. If it is fake, no information will appear meaning your details are not present in their database.
Although, buying a third party insurance is the most 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 in future.
