How To Choose The Best Auto Car Insurance Company
This post explains lots of information about auto car insurance policy to help people make the right Insurance choice.
Once you purchase a new brand new car, fairly used or tokunbo, the next thing you will definitely consider is insuring the car. A big question you will definitely ask yourself is “how do I choose the best vehicle Insurance Companies in my country?”
It is wrong to buy a new car and immediately hit the road with it. By so doing you are not only leaving yourself at the mercy of task force on the roads in charge in inspecting vehicles, also you are exposed to risk of third party damage which is not covered.
In the world today, there are mainly two types of vehicle insurance offered by most of the insurance companies. They are;
- Third party auto insurance policy.
- Comprehensive auto insurance policy.
Third Party Auto Car Insurance Policy
The third party auto insurance policy is compulsory and protects every car owners from only damages their cars may cause other parties.
For example, if your car runs into a road side shop and caused a serious damage. Or let say your car knocked a pedestrian down and inflicted severe injury. It can also be that your car had an accident and cause a damage on another car.
All these issues may end in a serious argument maybe in the police station.
Most drivers don’t understand what is meant by the third party auto insurance. Majority of Nigerian drivers just see it as a vehicle documentations they have to carry about to use and prove their ownership of their Vehicle.
If you choose the third party auto insurance from a registered and reliable insurance companies, you will be able to save from the cost associated with causing damage on third party.
If your car injured a pedestrian, the insurance company will have to cater for the medical bills and every other bills associated to it.
It is also necessary to point out that – the third party auto insurance only pays for damages your car caused on third parties and it totally ignores any loss you personally incurred during the process.
Comprehensive Auto Car Insurance Policy
The Comprehensive auto insurance is more than just a third party auto insurance. In the comprehensive auto insurance the Insurance company indemnifies for both your personal loss as well at that of the third party.
If you need to insure against vehicle theft, vehicle fires then what you need is a comprehensive auto insurance policy.
Most registered car dealers will give you a comprehensive auto insurance cover as an option when you buying a car. The car dealer or the insurance company may also offer you a car-tracking device.
You have to know that car dealers are different from insurance companies, but only have a high level of relationship with them. Therefore, make sure the insurance company your car dealer is working with a registered insurance company with good reputation.
To get the best comprehensive auto insurance policy, make sure that you contact a registered insurance company that provides auto insurance services or rather you can use the services of an insurance marketer.
A comprehensive auto insurance policy will cover private cars, commercial vehicles, even Motorcycles (okada), and Tricycles.
How to Choose the Best Auto Insurance Company
There are several auto / car insurance companies in Nigeria presently. We see insurance marketer everyday in our business places trying to convince us to register with there insurance firm.
Now the big question is how do you know which of the insurance company you will choose? The list below are things you should look for before choosing an insurance company.
1. Company’s History and Reputation
The reputation of the insurance company is very important. An insurance company with poor reputation might be a mistake if you decide to choose it. Using them you may find it difficult to get your claims if a risk occurs. And for the history, choose only the auto insurance company with a very good track records.
2. Company’s Financial Strength
Information of financial status of an insurance company can be find in their annual report. If you can’t interpret an annual report of an insurance firm – then look for someone that can.
An insurance company with poor financial strength may not have the capacity to pay full indemnity if an insured risk occurs.
3. Quote and Bundle Offers
There is what is called franchise clause and excess clause in an insurance policy. Make sure you are aware of what nature of insurance cover you are entitled to, and at what level of damage can they indemnify you, in terms of value. This is very important, digest the terms and condition of an insurance policy before accepting it.
4. Use a licensed Insurance Broker
An insurance broker is a professional and a specialist in insurance, someone who understands risk management to the fullest.
A broker will help you identify the kind of risk you should insures against and how to best manage those risks in other ways.