A couple of editions ago, we discussed how insurance can help you live smartly. To recap: having insurance coverage for various aspects of your life can be incredibly beneficial, especially in these uncertain economic times where every unexpected expense feels like a major setback.
This week, we are revisiting the topic of smart living. Do you have insurance coverage for your car? Most car owners in Nigeria have Third Party Motor Insurance because it is mandatory. It’s required by law to avoid issues with the Federal Road Safety Corps operatives. While this is good, let’s delve into the more comprehensive option: comprehensive car insurance.
Owning a car is often likened to having a second spouse—it requires maintenance and attention. For some, a car is a luxury, while for others, it’s a necessity, especially if it supports their job and income. Regardless, a car is an investment, and any investment should be protected. Navigating Nigerian roads with their aggressive drivers poses risks, and even the most cautious driver can end up with a dented car.
Take Bassey, for instance. A promising young realtor who had just achieved his dream of owning a brand-new car to enhance his professional image, Bassey was driving home one evening to celebrate with friends and family. Out of nowhere, an old, rickety bus crashed into the rear of his car, severely damaging the bumper and rear lights. Bassey was devastated and had to spend over five hundred thousand naira on repairs. If he had comprehensive car insurance, the insurance company would have covered the cost, allowing him to allocate that money elsewhere. Realizing this too late, he promptly secured comprehensive coverage for the future.
Understanding Comprehensive Car Insurance
Comprehensive car insurance is a policy where the insurance company covers the insured vehicle against accidents, theft, loss, or damage. This protection is provided in exchange for an annual premium as specified in the policy. This type of insurance alleviates the financial burden of unexpected car repairs or replacements.
The policy includes three types of coverage:
- Own-damage: Covers the insured vehicle against theft, fire, natural disasters, and accidents.
- Third party liability: Protects the car owner from legal liabilities if the insured vehicle causes injury or death to a third party. The insurance company compensates the affected party or their beneficiaries.
- Medical expenses: Refunds drivers for medical costs resulting from accidental injuries.
This insurance plan is available to any individual or entity that owns a vehicle—businesses, clubs, associations, government entities, religious institutions, and schools.
What You Need
To purchase comprehensive car insurance, you will need:
- Chassis number
- Engine number
- Vehicle registration number
- Photographs of the insured vehicle
Exclusions in Comprehensive Car Insurance
While comprehensive car insurance covers a wide range of scenarios, there are certain exclusions:
- Driving without a valid driver’s license.
- Accidents caused by the driver’s intoxication with drugs or alcohol.
- Damage resulting from war or bombings.
- Accidents occurring while driving someone else’s car—the policy covers only the car registered under the policyholder’s name.
It’s crucial to thoroughly understand your policy’s details to avoid discovering exclusions too late.
