Vehicles and cars are assets which are prone to wear and tear, this means that they can get depreciated at any point in time. Most car owners are aware of the fact they since their cars are at risk of having damages and getting involved in a minor accident, fatal or ghastly accident. In order to protect their vehicles, most car owners get their cars insured with insurance companies that will cover the loss of the vehicle should in case the vehicle gets damaged or causes casualties such as death, injury or damage to another 3rd party. If an insured vehicle is involved in an accident or if such vehicle hits a 3rd party, the insurance company to which that vehicle is insured will cover the loss and indemnify the damages to the 3rd parties involved in the incident.
What Is Insurance?
Insurance refers to a way of reducing the financial burden placed on a person whenever unexpected, unseen and unpredicted events such as death, theft, illness or accident happen to someone.
What Is Car Insurance?
Car insurance, motor insurance or Auto insurance as it is fondly called is a system of reducing the financial loss which incurred by a car owner whenever unexpected events such as car damage, accident or car theft befall him. The reason why people seek insurance for their cars, trucks, and vehicles is to provide financial protection against damages or injuries which can occur from traffic collisions, unfortunate incidents and road accidents. Apart from physical damages, auto insurance offers financial protection against theft of the insured vehicle as well as other natural disasters and liability of the vehicle.
READ MORE: Cheapest Places To Buy Cars In Nigeria
Before knowing about the best car insurance companies that offer low rates to their clients and customers, we recommend that you know some basic terminologies which you should have a good knowledge of, before buying insurance and pitching your tent with any insurance company in Nigeria.
Basic Terms and Terminologies In Insurance
Insurer: An Insurer refers to the insurance company that issues insurance policy.
Agent: An agent is a person who stands as a representative of an insurance company. The agent sells insurance products to clients and customers on behalf of the company.
Insured: Insured refers to a person or people who have purchased insurance products and are protected by the insurance policy.
Coverage: Coverage is the amount of protection purchased by the insured.
Policy: A policy is a legal contract or agreement which is kept between the insurer and the insured.
Premium: A premium is a fee paid to the insurance company.
Claim: This is an official notice which is provided by the insured to the insurer or insurance company which requests for the insured to the paid for the loss or damage of an event which has been covered by an insurance policy.
Broker: A broker is a person who sells and trades the insurance products of different insurance companies.
* We used a Toyota Camry 2009 model as a benchmark vehicle for the prices stated in this article
List of Insurance Companies With The Best Rates In Nigeria
1. Axa Mansard Insurance
Axa Mansard insurance provides three auto insurance packages namely; Auto Plus, Auto , and Auto Classic. The annual insurance cost on the Toyota Camry amounts to N150,000 on the Auto plus package, N112,500 (Auto vintage) and N78, 750 on the auto classic insurance package. The Auto-Plus package contains special features such as a free excess buyback and %% claim bonus n 3 years consecutive premium without claims. Contact the customer care on email@example.com or call 01-4485482 or 08150490199. Their office address is located at 928A Aboyade Cole Street, Victoria Island, Lagos.
2. Cornerstone Insurance
Cornerstone insurance offers four motor insurance packages namely; Auto Bronze, Auto Silver, Auto Gold, and Auto Platinum. The annual cost for our Toyota car costs N62, 500 for Auto Bronze package, N74,000 – Auto Silver, N87,500 – Auto Gold and N100,000 – Auto Platinum. Special features are included in the packages such as; excess buyback of 1% of sum insured, personal accident, loss of personal effect. To know more of the plans, kindly contact the mail support at firstname.lastname@example.org or call 0810 6000 800. Their head office address is located at Water Corporation Drive off Ligali Ayorinde Street, Victoria Island, Lagos.
3. Industrial and General Insurance (IGI Nigeria)
The insurance for our Toyota is N125,000 which includes a special feature of an excess buyback. To get info on this offer, you can mail the customer care support on email@example.com or call (01) 2918853, 2918854, 2918827. Their head office is located at No 2, Agoro odiyan street, off Adeola Odeku Street, Victoria Island Lagos state.
4. Law Union & Rock Insurance Plc
With Law Union and Rock Insurance, our Toyota got an annual insurance cost of N125,000. For extra cover protection, the packages plans go for N150,000 and N162,000. To get more of their offers, kindly Call 09036000066, 01-2931369 for details.
5. Leadway Assurance
Leadway insurance has three comprehensive insurance which is Silver, Gold and Platinum offers. The policy is that the plans will be renewed annually. The price of our Toyota goes up for N100,000 annually. Leadway Assurance can be located at 121/123 Funso Williams Avenue Iponri, Lagos and reached on Skype on 01-2800700 and can be called on +234 (01) 280 0700.
6. Mutual Benefits Insurance
With the use of the quote calculator, our Toyota was given an insurance cost of N112,500. For more enquires about the offer, you can contact Mutual benefit assurance at their head office address located at Aret Adams House, 233 Ikorodu Road, Ilupeju, Victoria Island Lagos or call 09054644444, 09054744444.
7. Niger Insurance
The basic comprehensive insurance cover for our Toyota was priced at N100,000 which will be paid annually. Added benefits include a standard cover which goes up for N112,500 while the comprehensive plus plan goes for N137,500. You can contact Niger Insurance by mail at firstname.lastname@example.org or call 01 – 2121262, 01 – 2121264.
8. Old Mutual Insurance
The basic comprehensive insurance for our Toyota goes for N125,000 annually. While the comprehensive standard goes for N150,000 a comprehensive plus goes for N162,500. For more enquires contact the company on 01-279-3742-6.
9. Royal Exchange Plc
The comprehensive insurance cover for commercial vehicles including our Toyota amounts to N150,000 which will be paid annually. The insurance plan includes cover for passengers liability. For an extra added cost, the comprehensive insurance will protect against strikes and riots. Royal Exchange plc can be reached via mail at email@example.com or called on +234 -1- 4606690 – 9.
10. Staco Plc
The basic comprehensive insurance cover on our Toyota costs N143,750 annually. Extra covers are available but will be added more costs. For more inquiries, you can reach out to Staco Plc by mail at firstname.lastname@example.org, by 01-2952697(Skype) and call on 08150970457.
We recommend that you make carefully read the terms of the agreement or T & C of any insurance product before buying them.