In Nigeria, a lot of people have wrong perceptions about auto insurance policies and do not buy into the idea of insurance because they think it is unnecessary.
However, auto 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.
Also, an auto insurance certificate is a compulsory document for all vehicle owners to have in Nigeria.
Here are steps needed to get a proper insurance cover in Nigeria
A. 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.
Some of these companies include:
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- FBN General Insurance
- AIICO Insurance Plc
- Old Mutual Nigeria
- Cornerstone Insurance
- Consolidated Hallmark Insurance
- AXA Mansard Insurance Plc
- Leadway Assurance Plc
- Zenith Insurance Plc
B. Choose a Type of Auto Insurance
After you research the list of insurance companies in Nigeria and decide on which company you want to buy a policy from, you will have to contact them through phone, or pay a visit to their nearest office.
You will be required to fill some forms, which will include the following:
- KYC Form
- Motor Proposal Form
- Motor Insurance Physical Inspection Form
In the form you will most likely be offered two (2) types of car policies. They are:
- Third Party Auto Insurance
This is compulsory in Nigeria and is the most popular type of cover. Popularly called “Police let me go”, this policy covers death, accidental bodily injury and damage to the property of a third party.
C. An annual premium between N5,000 and N10,000 will be charged on this policy depending on the type of vehicle.
- Comprehensive Auto Insurance
This policy is not compulsory under 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.
D. 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.
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 also offer the vehicle owner a car-tracking device which will range from N2,500,000 and above.
Once you have purchased a policy, the insurance company will issue you a certificate which should contain details about your policy.
You will need to confirm your policy to be sure of its authenticity. This can be done by visiting www.askniid.org and following the instructions laid out.
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.
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