Car Insurance

How To Choose the Right Car Insurance Policy for Your Needs in 2024

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Most car owners think that the bliss is just being able to purchase a car. But that’s far from the truth. Having car insurance is the bliss of owning a car. You move through each day being relaxed and minding other personal business. When an issue arises, all you need to do is reach your insurance company, and the car issue is immediately covered.

Whether it’s third-party or comprehensive insurance, both of them are the real best friends of a car owner. But how do you make the right choice when it comes to purchasing a car insurance policy in Nigeria? How can you be sure that the policy you’re selecting will serve subsequent needs?

To enable you to purchase a car insurance policy that meets your major car needs, this article takes you through the smart ways to purchase the right car insurance policy for your car.

Before we share with you some helpful advice on how to find the right car insurance policy for your needs,  let’s help you first understand the following: 

Major Benefits of Having a Car Insurance Policy in Nigeria

Because of the level of car insurance fraud in the country, most car owners are gradually concluding that car insurance isn’t for them. That they are better off without it. But is that true? Have you ever been involved in a car accident that nearly left you bankrupt, or you suddenly smashed someone’s car but had no money to repair it?

With the right insurance policy in Nigeria, you won’t need to worry about unforeseen road troubles like this. Here are the major benefits of having car insurance in Nigeria.

1. Collision Coverage

Just like the name, this car insurance policy will protect you from financial responsibilities regarding vehicle repairs if you get into a car collision. Depending on your chosen plan, you will be covered regardless of who was responsible for the accident.

2. Property Damage Coverage

If you are at fault for an accident, this coverage will protect you from financial responsibilities involving repairs for your car, property, and other non-human damages.

For instance, if you slammed your car against a neighbour’s fence unknowingly, this coverage pays for the fence repairs or replacement. It also covers legal fees if a case related to the incident is filed against you.

3. Bodily Injury Coverage

The bodily injury coverage protects you from financial responsibilities in case your car hits or injures someone in an accident.

It covers the medical treatment and rehabilitation costs of the injured person. In some cases, it also includes lost wages, pain-and-suffering costs, emotional distress damages, legal fees, and funeral expenses.

A bodily injury car insurance coverage covers the injury or damage others suffer as a result of an accident with your car.

4. Comprehensive Coverage

Comprehensive coverage covers car damages resulting from events other than a collision. These events can be theft, vandalism, theft, fire, riots, falling objects, and natural disasters. However, it doesn’t cover everything. For additional coverages, you’ll have to pay extra for some other coverages that’ll be added to your comprehensive car insurance plan.

5. Third-Party Coverage

In Nigeria, third-party car insurance is made mandatory for car owners. It protects other car owners in a situation where your car damages their vehicle. It saves you from the financial responsibility that you’d have sorted yourself for damaging another person’s car.

Some Additional Car Insurance Covers You Can Ask For:

Aside from the features mentioned above, you can purchase add-ons to increase your financial protection or gain more benefits. Here are some of them:

  • Voluntary Third Party Liability
  • Personal Injury Coverage 
  • Loss of Use
  • Acts of God Coverage
  • Roadside Assistance

7 Smart Tips for Choosing the Right Car Insurance Policy in Nigeria

Getting car insurance is an important decision for every car owner, considering all the risks involved in driving. However, it helps to remember that it is also mandatory to have car insurance in Nigeria—third-party car insurance precisely. 

The common mistake car owners make is that they purchase car insurance without first weighing their options and coverage. To get the best out of your insurance plan, you have to pay close attention to your preferred plan. 

To help you choose the right car insurance for your vehicle, here are 7 important tips to guide you through the process.

  1. Know the Car Insurance Terms

If it’s your first time getting vehicle insurance, seeing all the technical terms used by insurance providers might get you confused. Try as much as possible to get familiar with those terms. It will make it easier for you to browse through car insurance options and find the suitable plan for your needs. It’ll also enable you to communicate with your insurance provider about your needs. 

  1. Examine Your Driving Strength

The best car insurance plan is the one that adequately covers your needs. It’s hard to know the car insurance coverages you’ll need if you don’t know your strengths when it comes to driving. 

Before looking around for car insurance quotes, first, assess your driving habits. Are you just learning how to drive a car? Are you a competent driver who can avoid certain car incidents? 

Your driving skills will help you easily determine the type of car coverage that’ll best work in your situation.

  1. Research Reputable and Reliable Insurance Companies

The insurance company you’ve chosen to purchase your car insurance from speaks volumes. Ensure to conduct thorough research on these companies and compare their plans before settling for one company. 

Check this article, where we’ve highlighted the top insurance companies in Nigeria today. Visit their websites, and verify what their vehicle insurance looks like and how that’ll meet your needs. 

  1. Compare Insurance Quotes

Now, while on the websites of these top insurance companies in Nigeria, another thing you should do is compare their various car insurance quotes to know which of them meets your budget.

These companies have made it easy for Nigerians to get all of this information; all it takes is visiting their website and asking them about their car insurance quotes. They don’t place the quotes on their website. You have to initiate a conversation with them through live chats to learn more. This may seem tiring, but it will certainly help you find a better deal.

  1. Consider your Budget

Aside from your vehicle and your driving skills, also you must consider your budget when you compare quotes.  Set a realizable budget for insurance, research, and figure out which of them fits the budget. Oftentimes, you can negotiate with them to get a better deal. It helps to remember that if you want more coverage and more security, you will need to increase your expenses most of the time.

If you feel that something is lacking after examining the coverage and rates of your choices, you can opt to include add-ons to them. Find the coverage you think you need to add and create a forecast of your expenses with these additional items. While top-ups will require you to pay extra premiums, they will give you more benefits.

At the end of the day, you have to allocate your funds wisely. Do not overextend your budget and get only the coverage you need.  Remember, you’ll have to renew the insurance plan to be assured of coverage continuously. Ensure you choose a suitable plan that meets a budget you can afford to pay for regularly. 

It’s not financially wise to choose an N20,000 per month insurance plan that you won’t be able to pay for each month.

  1. Take Advantage of Insurance Discounts

Certain factors make you a “low risk,” such as your age, marital status, driving record, the age of your vehicle, and even the driver training programs you have attended. For those considered low-risk, certain discounts are made available to them.

Having a vehicle with anti-theft and safety equipment installed in your vehicle may also reduce your premium. You must make the most of these factors to bring down your costs and achieve a better car insurance deal. All you have to do is highlight these factors for your insurance provider, and you’ll be offered discounts.

  1. Read Before Sign the Agreement Form

If you have already selected a series of car insurance plans covering your needs, it’s best to give it one last look before signing the papers. Take time to go through the items specified in the coverage for you to know and understand the details of the policy. 

Regardless of how lengthy the terms and conditions applied might be, spend time reading through ALL of them. It might seem unnecessary and burdensome, but it could help you highlight certain factors you need better clarification on or you might want to opt out of. 

If you’re unable to go through them yourself, consult a legal advisor specialized in this area to help read through the terms and conditions.


The first step is understanding you need car insurance as a car owner. The other step is getting the right insurance coverage for your car. In truth, not getting the right insurance coverage for your vehicle is just like not having car insurance as well. The essence of getting one is to guarantee you’re future-proofed from any unforeseen driving incident. Therefore, ensure you follow the above-listed guides to help you arrive at a good insurance plan.

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