In Nigeria, third party car insurance is mandatory and as the name implies, it has a lot of limitations. This form of insurance does not cover you neither does it cover your new car.
The insurance only cover a third party.
A simple example is, if, for instance, you own an expensive car which you insured via this form of insurance, and accidentally while driving the car you ran into another car, what this third party car insurance does is to help you pay for the damage that might result in the third party car or vehicle you hit.
The question now is; what about your own car or you? In other words, who now take care of your car and you.
In this form of insurance, the insurance company is only concern about the next person and not you. In other words, you take responsibility for your own expenses by dipping your hand into your pocket to fix damages caused to your car. Since this form of insurance does not hedge you and your car, you take care of your own expenses by using your hard earned money.
This is an unfair advantage which the comprehensive car insurance has over the third party car insurance.
Why Car Insurance Policy?
Having stressed all of the above, the point now is why should you get a car insurance policy for your vehicle? Is there anything wrong with you driving your dream car without purchasing getting it insured?
All of the above are the questions which we shall be providing answers to before the end of this article. Whenever you buy a brand new car or a fairly used one, you’re already told about your options for car insurance policy by the car dealer. Like we earlier mentioned, in Nigeria, you’re not allowed by law to hit roads with your vehicle without any insurance policy for it.
Having your car insured via the third party insurance is mandatory. So as a car owner, who cherish his or her car, you’re expected to get your car covered against unforeseen circumstances. For those that are not aware, having your car insured, give you a peace of mind every single moment you ride your car.
Coverage of the policy really depends on the type of car insurance policy you get for your vehicle. Most of the time, a policy insures your vehicle and the vehicle that you may have damaged if the accident is due to your negligence. Comprehensive insurance policy which we’ve earlier mentioned really does the second part of the preceding line. It’s also interesting to know that having your car insured with insurance policy helps to preserve your car’s value.
Yes, it does preserves your car’s value. The maintenance given to your car by the insurance company helps to keep your car in the right shape.