Who should buy car insurance and why?

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It is important to have car insurance, as this type of cover can protect you from having to pay out a large sum in order to repair a damaged vehicle (or more than one vehicle) if you are involved in a car accident.

In some cases, the financial cost of being in a car accident can even surpass the expense of vehicle repair. This can occur if injury and / or death occurred due to an accident that you caused. Therefore, car insurance policies that are comprehensive will also provide cover for this type of liability.

Anyone that owns a vehicle should purchase car insurance. Having at least a third party car insurance policy is compulsory in Nigeria. However, for those who wish to have an additional layer of protection, then a comprehensive car insurance policy may be the better alternative.

It is important to have the proper amount of car insurance cover for your specific needs. All situations are different, so determining the ideal cover limit, as well as type of cover, will help you to narrow down your options.

In Nigeria, it is required that you have at least a third party car insurance policy. However, for those vehicle owners who wish to also have cover for potential liability, a comprehensive policy may be the better option.

When choosing a car insurance company, be sure that you have verified whether the insurer is registered and can offer an authentic policy. You will also want to ensure that the insurer is strong financially, and that is has a positive reputation for paying out its claims.

Read the next article in this series:”Which type of car insurance should I buy?”

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