What is a car insurance
Insurance is a fraction of agreement between the insured and the insurer which leaves the insured’s car protected against destruction, collision, fire, storm damage and theft. This policy will see to the protection of the insured’s interest, providing he fulfils the requirements of engagement to the most.
A lack of insurance contributes to several downturns or total loss of vehicles in times past. Due to this, it is advised (mandated) by the laws of most places that cars be registered to an insurance company. Failure may attract fine as severe as losing one’s driving license — this stresses it’s importance.
What is the importance of car insurance
A car insurance policy offers the car owner all the rest of mind there is in the situation of a mishap. Car insurance protects the car from associated loss or damage. It also protects the passengers
There are various types of car insurance, and they include:
- Third-party – This is the basics as required by the government. It may, however, not be the cheapest. It takes care of injuries to other motorists and damage to property.
- Third-party, fire and theft – This covers the cost of repairs or a change of vehicle if your car gets nicked or damaged.
- Comprehensive – This is the topmost in the rung as it offers protection to your car as well as to other people. It may include a car replacement and clearance from legal expenses but it this could be at an extra cost.
How does it work
A car insurance policy is conducted between the insurer and the insured after the insured must have agreed and met the terms of service of the insurer. It includes making specific payment from time to time and deploying a prescribed mode in handling the object of insurance.
There are several aspects that a car insurance covers and they are determined by the sort of coverage the insured subscribes to. They include collision insurance, comprehensive insurance, auto glass insurance, rental car insurance bodily injury liability insurance, etcetera.
How to check if your car has insurance
Insurance safeguards but it is essential to check regularly if you have comprehensive or third party insurance and if your contract is valid and active to avoid stories that touch.
In Nigeria today, there is a general body responsible for providing the status of your insurance, and they are The Nigerian Insurance Industry Database. Check out the step by step process below;
- Click on ‘check policy’ when you get into the website.
- Select ‘vehicle policy’ from the array of options
- Select ‘fleet’ or ‘single.’
- Input your verification number or registration number
- Click on the ‘search’ box.
- It will reel the details of your insurance out.
- You may try the USSD option by dialling *565*11#
As the importance of car insurance cannot be understated, so is regular checking of one’s active status necessary.