Getting car insurance is the last thing on the mind of many car buyers in Nigeria when they set out to buy a new car or a used vehicle. Many have to be greatly persuaded to subscribe to a car insurance plan. We don’t envy insurance salesmen/women who take up the responsibility of convincing people to get car insurance policies.
First, there is this ambivalence towards insurance in Nigeria because people think insurance is not part of our culture. Second, people will rather take their cars to their religious leaders for prayers against accidents than to buy an insurance plan for the car. This makes selling car insurance in Nigeria difficult as the people are deeply religious.
However, there is a serious need to keep hammering in the importance of car insurance which most people don’t seem to understand. While many think insurance is just an unnecessary extra cost, they don’t know that it is more than that.
Those who even grudgingly bought an insurance plan in the past can testify that anything can go wrong at any time and a good insurance plan is always there to wrap the jacket of protection around you. Here are some reasons you need to take the issue of getting car insurance quite seriously.
1. Peace of Mind
There is no telling when something might go wrong. Even the best trained and most careful drivers, despite their best efforts, still get involved in accidents.
Driving is about you and another driver on the road whom you can’t vouch for his sanity or stability. While your car insurance can’t stop road accidents or an Act of God from occurring, it can, however, give you a degree of protection from them in the event that they occur.
This awareness gives you the peace of mind to drive because come what may, you are protected.
2. It is Required by the Law
It is illegal to drive without a car insurance policy for your car in Nigeria. If caught doing so, you could be fined by the police or road safety officials.
Not having a car insurance policy for your car can come back to haunt you in the long run when there is a claim against you.
3. Safety Net
Car insurance is important because it serves as a safety net. If you truly value your car, which you have worked hard to pay for, you should go the extra mile to get it insured. Though the extra costs may seem like an added responsibility to you, the bigger picture should be the focus; in that whatever happens, you are prepared and you have a safety net to cover any liability.
4. Takes Away Personal Liability
Car insurance protects you from personal liability. In the event that you are involved in an accident, and you are at fault, without car insurance, you will be made to cover all the costs of medical bills if a person is injured.
It gets even worse if the person is killed as you have to face the financial consequences of such a tragedy. Bearing these costs on your own could ruin you financially. It could mean selling your stocks, bonds and valuable assets. It may also mean many years of future payments if you are unable to cover the financial cost all at once.
There are two types of car insurance in Nigeria: comprehensive and third-party car insurance. Comprehensive car insurance protects you and your car when damage or accident occurs. It covers you and your car and is considered more solid than third-party car insurance.
Third-party car insurance is a coverage that takes care of only third-party damages. It doesn’t cover you but covers the damage against a third-party.