There is nothing more empowering than buying your first car. It is an exciting process with the promise of freedom and adventures ahead. This excitement can quickly be stripped away by any loss or damage caused to your new vehicle. Car insurance can provide you with that necessary security when it comes to covering cost should a disaster strike. And after spending Millions of Naira on the purchase of your car insurance can provide some peace of mind too.

When it comes to preparing for life’s uncertainties it is car insurance often takes a back seat with most vehicle owners. Car insurance is not a luxury but a necessity, you are required to have some cover policy in place before you can drive your car home. Car insurance is an essential component of owning a car. Aware that once you buy it that you are responsible for getting it serviced and maintained – part of which is paying for car insurance. Having car insurance will also put your mind at ease and likely minimise potential devastation should you find yourself in an incident with your car. However, payment after payment, month after month it may seem as though car insurance is pointless and making these payments is futile, but car insurance is a necessary evil – something that when caught in an incident you’ll be grateful for having.

AA (Automobile Association) recently released statistics showing that 70% of the 11.4 million registered cars in the country are not insured. That’s around 7.9 million possible ways to damage yourself, your vehicle or someone else’s. Being prepared is essential as the odds are against you. Paying for repairs can be a slow and painful process. It may even leave you without transport, forcing you to be reliant on public transport. The cost of not having car insurance places you at a greater financial risk than having it insured.

Five Tips for Choosing a Car Insurance Policy

  1. Is the insurance underwriter registered? Check with the financial service board to ensure the legitimacy of your chosen insurance company.
  2. Ask around concerning reputation, service, price and claim settlement turn around times. Word of mouth is a very valuable source of information.
  3. What is the excess that must pay? Is there an additional excess?
  4. Is everything covered by the insurance policy? Are there exclusions? Always read the fine print of your contract.
  5. Are any security devices required? These may include; an alarm system, gear lock and tracking device.

Car insurance Questions to Ask Before Signing the Policy

  1. Does your policy include hail damage?
  2. Is the driving of your vehicle restricted to ‘named’ driver?
  3. Is cover for theft or hijacking subject to the installation of an immobiliser or tracking device?
  4. Are business use extensions included in the car and household insurance?
  5. What territorial limits apply?
  6. Are penalties imposed for young drivers?
  7. What excesses apply in the event of loss or damage?
  8. Are you covered for loss/damage from mining operations, landslides or subsidence?