It’s no secret that if you drive, you’re bound to experience car trouble at some point—or more likely, multiple times. If you don’t have comprehensive insurance, you may find yourself paying large amounts of cash out of pocket every time something goes wrong with your vehicle. Thankfully, there’s comprehensive car repair insurance, which covers all the costs of any major repairs needed in the event that your car sustains damage or breaks down due to weather conditions, accidents with other cars or people, and even theft or vandalism. Car tracking can come in handy too.
A lot of people in Nigeria get the wrong idea about car insurance and therefore don’t bother getting insurance.Within the course of this article, we will be looking at all there is to know about car repair insurance policies and everything that lies between.
What exactly is it?
Car repair insurance is a type of insurance that will cover the costs of repairing or replacing your vehicle in case of an auto accident. It’s important to note that car repair insurance does not cover damage caused by wear and tear, such as rust, corrosion, or normal wear and tear on brakes. It also doesn’t cover tires, windshields or damage caused by vandalism.
Most policies require you to pay a deductible before they begin paying out any money for repairs. In some cases, you may need to pay a small fee each month or year in order to maintain this coverage.
Types of car repair insurance
There are three types of auto policies that you might want to consider, each offering different levels of protection. They include;
- Act Only Car Insurance Cover
People also know this type of insurance as motor third-party insurance or third-party liability cover. In accordance to the law, it’s essential that all car owners have this type of car insurance. It’s the least costly form of auto insurance you can buy.
- Comprehensive Car Insurance Cover
Comprehensive insurance, as the name implies, protects against a wide range of uncertainties, including theft, accident, fire, etc. This type of insurance is often considered the best. Comprehensive car insurance protects both the insured and third parties in case of an accident.
- Third Party Only Car Insurance Cover
Insurance for third parties only is a type of coverage that covers losses to third-party vehicles and properties. However, damage to your own vehicle is not covered, even if it is stolen or vandalized.
- Third Party, Fire and Theft Car Insurance
Similarly, third-party-only car insurance covers only the third party. Besides covering damage to the vehicle and property of a third party, insurance also covers damage to your own vehicle if it’s stolen or damaged by fire. You can also file a claim if your car is damaged by attempted theft.
How to Select a perfect Car insurance policy
Selecting the right car repair insurance policy is important. There are a lot of different features to choose from, and it’s important that you have the knowledge before making your decision.The first thing you need to do is decide what type of policy you want.
The most common types are comprehensive, collision, and liability. These policies all offer different levels of coverage. They also vary in price, so it’s important to know the difference between them.
Comprehensive insurance covers your car against incidents such as theft, vandalism, and weather-related damage like hail or flooding amongst others. Collision insurance covers your car against accidents with other vehicles or objects that cause physical damage to the vehicle. Liability insurance covers you if someone gets hurt on your property or if they get hurt driving your car.
These policies can be combined into one policy called a comprehensive package.
When do I need car repair insurance?
You will need a car repair insurance if you are a person who loves their cars and invests in them. If your car is still under warranty, your car manufacturer will provide it for you.
However, once the warranty expires, getting comprehensive coverage becomes necessary. This type of insurance covers repairs or replacement of your vehicle if it suffers damage from an accident or other mishap like being vandalized. It also covers expenses when your vehicle is stolen or damaged by weather such as hail.
How To Know the Best Car Insurance Policies for Your Vehicles
The best car insurance policies for your vehicle depend on the type of vehicles that you have and your driving history. If you are a safe driver, then you will be able to find affordable rates.
- For Hire-purchased vehicles
You should have Own or Collision Insurance coverage if the vehicle is not yet yours, as this will help cover damage to your vehicle if another motorist causes a roadside accident.
- For all Vehicles in Nigeria
Every vehicle in Nigeria must be insured with third-party insurance, which protects an individual or company against losses caused by third parties.
List of popular car insurance companies in Nigeria
Choosing the best car insurance company for you is a very important decision. The most popular car companies in Nigeria include;
- Alliance Insurance Company
- Nigeria Sovereign Investment Authority (NSIA) Assurance.
- Law Union And Rock Car Insurance
- Mutual Benefits Insurance
- AIICO Insurance American International
- Leadway Assurance
- Zenith Assurance
What are the benefits of car insurance?
Car insurance is designed to protect you from the high costs associated with repairing or replacing your car. Repairs can cost tens of thousands of dollars if you don’t have car insurance and your vehicle is damaged.
The best way to understand car repair insurance is by understanding the three different types of coverage: comprehensive, collision and liability. Comprehensive covers the damage or loss of your vehicle due to natural disasters, theft, fire and vandalism. Collision covers the repairs in case you are in an accident with another vehicle. Liability covers damages that you may cause to other people’s property (or person) as well as their medical costs.