Car Insurance

Comprehensive Car Insurance: Is It Worth the Investment?

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Car owners in Nigeria looking for the ultimate peace of mind with their vehicles should all have car insurance, and comprehensive car insurance is one of the most important car insurance a car owner should utilize. It provides car owners with the highest car coverage and protects them from unforeseen financial situations that could arise as a result of their vehicle. 

There are other car insurance in Nigeria, like third-party car insurance. But why should a car owner desperately get comprehensive car insurance? Come with us to find out.

What does Comprehensive Car Insurance Cover in Nigeria?

The first thing that’ll be on your mind when you hear about comprehensive car insurance in Nigeria is wondering what is provided in the insurance coverage. What is included in comprehensive car insurance in Nigeria depends on your insurance provider, the value/condition of your car, and other extra coverages you ask your insurance provider for.

While there are a variety of things included in comprehensive car insurance, here are some of the things commonly found in one:

  • Damages your car causes other people’s vehicles (just like the third-party car insurance)
  • Repair or replacement costs for your vehicle in the case of an accident or if it’s stolen
  • Emergency support for vehicles like towing or emergency repairs to get your car back on the road
  • Repair or replacement of missing personal items kept inside your car.
  • Car key replacement if they’re stolen.

Insurance providers offer extra benefits for car comprehensive insurance, and they include things like: 

  • Rental car coverage when your car is being repaired
  • Provision of roadside assistance for mechanical assessments in the case of vehicle breakdown 
  • Rideshare cover if your car also serves as a service vehicle on platforms like Bolt, Uber, etc. 
  • Cover for car modifications.
  • Reduction of cost of repairing or replacing car parts

Note: Different insurance providers also highlight the extent to which these coverages will be provided for a single claim.

What Is Not Included in Comprehensive Car Insurance in Nigeria?

If a Nigerian car insurance provider can provide you with all of these, then what could be missing out? What are things not included in comprehensive car insurance that leads people to still go after third-party car insurance? 

Here are things not included in comprehensive car insurance in Nigeria:

  • There is no standard wear and tear coverage, so you can’t make claims for things like electrical or mechanical breakdowns, bad car tires, or car rust issues.
  • Insurance does not cover driving and getting into an accident under the influence of alcohol or drugs
  • It does not include breaking traffic rules 

Note: Only fully registered cars with a comprehensive car insurance plan paid for regularly can claim any insurance payments. For instance, once you stop car insurance payments, you automatically lose any related benefit.

How Do I Compare Comprehensive Policies In Nigeria?

Many insurance companies in Nigeria provide comprehensive car insurance. So, it’s essential to review all of them before choosing an insurance provider. While every company has its different comprehensive car insurance coverage, there are some insurance policies you have to compare amongst other companies. 

  1. Roadside Assistance Coverage

Roadside assistance is useful in case your car develops a flat battery, or you lock your car keys inside your vehicle. This coverage either comes as a separate cover, or some insurance providers add it to the comprehensive car insurance.

  1. Personal Property Cover 

This is useful for people who keep valuable items like expensive jewellery or other valuable items in the car. This cover is also attached to the comprehensive insurance cover.

  1. Hire Car Cover 

This is an essential cover if you use your car daily. The insurance company provides you with ride services for a duration of time in case your car breaks down. 

  1. Emergency Repairs 

This essential cover allows you to get quick car repairs from the purse of your insurance company when it’s needed, so you can quickly get back on the road.

  1. Windscreen Excess Reduction 

This is useful for car owners that drive regularly on unsealed roads. This helps you reduce the amount you need to pay when you make a claim for a windscreen repair. 

  1. New-for-old Replacement Cover 

This cover means your insurance companies will replace your car with a similar car model of equal value if need be. This is a good option if you like upgrading to the latest model cars from time to time without paying extra cost.

Is Comprehensive Car Insurance Worth it in Nigeria?

The value of any comprehensive car insurance depends on the premium versus protection trade-off. For instance, if you drive an expensive car, whether it’s a new model or a vintage ride, it’s worth it to get comprehensive car insurance. Why? Replacing or repairing their parts is costly, and the price of an annual cover of a valuable car is usually lower than the value of the car.

However, getting comprehensive car insurance is a personal and financial choice. As a car owner, it’s best to feel safe and relaxed knowing that whatever happens with your car, you can get it fixed whether or not you’re broke. 

When Should I Get Comprehensive Cover for My Car?

If you’ve come to the conclusion that comprehensive car insurance is important for your vehicle, then you should get one as soon as possible. It’s best even to get one the moment you’re purchasing a new car. Insuring a newer and healthier car is cheaper than insuring an older vehicle that could break down at any point.

When Should I Cancel My Comprehensive Car Insurance?

There are only three times when it’s advisable to cancel comprehensive car insurance. They are:

  • When selling your car
  • When you find a better insurance coverage
  • When your vehicle starts ageing 

Why is that?

It’s best to cancel your vehicle insurance before reselling your car because it saves you from paying comprehensive car insurance from another person. If you pay your insurance premium annually and have time remaining before your cancellation period, the company will offer you a refund.

It’s safe to cancel comprehensive car insurance and migrate to better coverage if your insurance provider does not meet your car’s major needs.

It’s best to cancel your comprehensive car insurance when your vehicle starts ageing. This is because vehicles lose value over time, and it gets to the point when the age does not justify the amount you’re paying for comprehensive car insurance. In that case, cancel it and opt for other coverage options like third-party car insurance.

How Much is the Cost of Getting Comprehensive Car Insurance in Nigeria?

Comprehensive car insurance covers every risk related to owning and driving a car. This is the major reason why it’s the most expensive car insurance policy. However, the cost of comprehensive car insurance in Nigeria depends on the value of your car.

Most insurance companies in Nigeria charge between 3% and 7% of the total yearly value of your vehicle for comprehensive car insurance. The value placed on the car means that’s how much it’ll cost to purchase the car. 

Once you’ve paid for a comprehensive car insurance policy, the insurance company issues you a certificate of insurance, which confirms your eligibility to report a claim and make claims when it’s needed.

What is the Difference Between Third Party Car Insurance vs. Comprehensive Car Insurance?

Third-Party car insurance only protects you against financial losses in case you damage another person’s car. Comprehensive insurance, on the other hand, covers both third-party damages and damages to your own car.

Difference between Third Party Insurance vs. Comprehensive Insurance

There are lots of differences between third-party car insurance and comprehensive car insurance. They include:

Third Party Car InsuranceComprehensive Car Insurance
CompulsoryNot Compulsory
Covers only third-party car damagesCovers both third-party and personal car damages
AffordableExpensive
No customizationYou can add or remove coverages to your comprehensive car insurance
Best for older carsBest for high-value and new vehicles

Which Car Insurance Should I Buy?

To determine which type of insurance is best for you, first inspect the condition of your car. If you drive a new or high-value car, comprehensive insurance that offers maximum protection is the best option. If your vehicle is older and you don’t use it often, third-party insurance is a good idea and saves you from overpaying on car insurance.

Another thing you should consider is your driving skills. If you’re new to driving, and could easily run into car accidents, then a comprehensive policy is the best option. But, if you’re a competent driver, then you should get third-party car insurance.

In all, always involve an insurance agent. They’ll always help you make better insurance coverage decisions when it comes to your car.

Conclusion

Both comprehensive and third-party car insurance are great insurance coverages for your car. However, before purchasing any of them, use the following parameters listed above to help you make a safer and financially wiser choice.

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