My 10 Trusted Tips For Car Insurance/My 10 Best Steps of Buying Car Insurance

Buying Car Insurance is arguably one of the most important decisions you’ll make as far as your money and investments are concerned. For some people, it’s also a tough decision as many people, especially in this part of the world, perceive buying insurance as a waste of money, reason being the popular notion of ‘why insure against something I don’t plan to happen?’. Amazingly, this is exactly why you should insure! You wouldn’t have to ensure if you had plans of having your car stop on the road, or having your car crash – all you would have to do would be to save up money for the impending bad incident. Buying insurance is simply saying, ‘I don’t plan for my car to stop on the road, but just in case it does, I have an insurer waiting on me to help!’.If you’d like to buy insurance for your car, these tips would greatly help you make the most of it.

1. Shop Around To Compare Prices
The primary way to save on car insurance is to compare prices. Different insurance companies have different prices for their policies and different coverage levels. Only in shopping around for the best price will you get what suits your pocket best. However, you have to exercise some caution here. You might get a cheaper deal, only to find out that it does not provide as much coverage as the seemingly more expensive one. So calm down in your shopping. Visit a couple of insurers and find out what’s involved in their policies, and how much. This will give you a better idea of which options to go for. This is not to say that the costlier, the better. It simply means you should know the details of each policy you check out, so you can be in the right position to choose what’s best for you. You can look for online comparison services that could do the hard job for you, all you have to do is put in your details and a quote comes up.

2. Check To Know How Many discounts You Can Get
If you don’t try to find out, you’d probably not be told about the discounts your insurer has available. Make inquiries about what discounts you’re entitled to. There are a number of ways to lower your premium, such as adding your car insurance to your home or business coverage. Also, insurers usually give discounts when you insure more than one vehicle, or when you insure your car together with a group. For example, if your company policy mandates you to ensure your car with other staff as a group, you get a really significant discount. The same thing happens if members of a family insure with the same insurance company.

3. Choose The Vehicle You’d Like To Insure, Wisely
It goes without saying that the costlier your vehicle, the more you’d have to pay to insure. So technically, cheaper cars attract lower premiums, and more expensive cars attract higher premiums.

SUGGESTED: Best Car Insurance With Low Rates In Nigeria

4. Keep A Good Driving Record
A good way to lower your insurance premiums is to maintain a clean driving record. It’s easier to convince an insurer to lower your premium if you have a clean driving record than if you’re known for drinking and driving. You’d pay less for car insurance if you’re an accident-free driver than if you have a bad history of accidents, and especially if they’re caused by you. This does not mean that you’re doomed to ‘no discounts’ if you’ve had an accident in the past. If it’s been a while since you last had a crash, and you have maintained a good driving record since then, you’re in a good position to ask for a discount. Always take the initiative to ask; if you don’t ask, you’d probably not be told.

5. Pay Premiums On Time
Insurance companies can decide to drop your coverage if you fall behind in premium payments. Applying for a new policy down the road might turn out to be more expensive. One good thing, however, is that insurance companies are not allowed to ‘judge you’ based on your salary level, or even bankruptcy level. So as long as you meet up payments, you’re good.

6. Don’t Be Reluctant To Try Out Smaller Companies

There’s the notion that the well-known insurance companies are the best places to insure. That is not always true. As a matter of fact, some smaller or regional insurance companies do better than their bigger counterparts in terms of settling claims, coverage, and even discounts. So before you conclude, consider smaller companies and do some real shopping around.

7. Know How Demographics Affect Policy Prices
A number of statistics such as age, gender, and marital status affect the way insurance companies view the insured. For instance, older drivers are generally perceived to be a lower risk than younger drivers. Some insurance companies perceive female drivers to be lower risks because they are assumed to be more careful drivers than men. Although you cannot change certain factors about yourself, you can make yourself less of a perceived risk to insurance companies. This does not mean you should up and get married just to reduce your premium, but it’s important to let your insurer know when you reach certain milestones in your life. If you recently had a baby, recently got married, or recently turned 25, it could make you less of a perceived risk and reduce the premium you’d have to pay.

8. Use Your Garage
If your garage is packed with trash, clean it out and put your car in. Insurance companies like it better when your car is kept in the garage, since the more it is out on the road, the greater the risk involved. Every time you’re not using your car, make sure it’s kept safely and covered in the garage.

9. Be Honest About Your Declarations On The Proposal Form
Be truthful in your declarations in the proposal form. This will make it easier for your insurer to settle your claims, knowing that they are genuine.

10. Sign Up To A Blackbox
Blackbox policies involve an insurer installing a system in your car to monitor your driving. This will be rewarding to you if you drive carefully. These systems are called telematics, and they check your speed, the way you accelerate and brake, and if you drive at odd hours of the day. This method can be greatly rewarding, as insurance companies will usually greatly reduce your premium if you do well. Some companies even offer an upfront discount if you agree to sign up to their Blackbox policy.

There are a number of other details of car insurance that exist, but these are basic and will go a long way in helping you maximize your insurance experience.

10 Easy Steps In Buying A Car Insurance Package For Your Vehicle

Buying a car insurance is highly necessary especially if you happen to have a very expensive car or rather if you’re buying a car for the first time or you haven’t paid attention to your insurance policy in a while then this guide will help you because you’ll definitely need an insurance in case you get in an accident or worse but you don’t want to pay more than you have to because research shows that over 67.63% of people overpay their car insurance and are still not perfectly ensured.

However, you could save hundreds of dollars a year only if you take your time and do some comparisons shopping a recent research we carried out occurred with two old cars that ranged from $1,206 to $1,974 which made it a significant difference of $768 a year so if you’re paying thousands to your current insurance company because you have a couple tickets or an outdated unfavorable credit rating, shopping your policy against others might be well worth the effort.

Top 10 Tips Before Purchasing An Auto Insurance Package For Your Car

Here are our top 10 tips to help you in buying a suitable car insurance

10 Easy Steps In Buying A Car Insurance Package For Your Vehicle

STEP 1

How much Coverage do I need?

In order for you to be on a safer side, you need to, first of all, know how much coverage you need because coverage varies due to the model of car you need or use and also it varies from state to state. Experts in car insurance recommend you getting enough liability coverage in order to protect them. If your finances are mismanaged and you happen to fall in a situation whereby you have $35,000 of medical bills coverage but in your personal assets you have just $60,000 and you happen to be in an accident whereby it is discovered by the attorneys of the second party that you’re at fault they could go after your medical bills and much more that aren’t covered by your policy, So we strongly advice you to let your financial situation be your ultimate guide and also your prospect so as to avoid unnecessary expenses because if you have no assets that the second party’s attorney can seek then no need to buy coverage.

STEP 2

Take a Review of Your Insurance

Contacting your insurance company should be the first thing you need to do when insuring your car so as to know the do’s and dont’s and also know the policy guiding you as a customer,Learn to note down the amount the of coverage you have now and also the amount you’d be spending on it and never forget to keep track of your yearly and monthly insurance cost just to help set a figure to beat.

STEP 3  

Check Your Driving Record and History

Bad driving records can drive your insurance cost way up than you can actually estimate. So if by any chance you happen to be receiving a lot of tickets to an extent whereby you forget the number of tickets you’ve had then there’s a problem and you need to check with your state’s department of motor vehicles. If In a situation you realize your points or tickets are about to disappear then wait till that happens and then proceed to get an insurance.

STEP 4

Outsource for Competitive Quotes

Now you have to take your time in this aspect as this is a very tricky part as you have to be ready and also very careful, we advise you set aside at least an hour for this particular task. Here are things you need to have at hand when sourcing for insurance on your car:-

  1. Driver’s license
  2. Insurance policy
  3. Vehicle registration

Remember to take your time and have a thorough check on the company you’re handling your insurance onto, you can also call the company’s toll-free number to get a quote.

STEP 5

Gather Company Information

While researching for companies always take your time to make coverage and price comparisons, also keep a list of Their Annual and monthly rates so as know the different type of coverage. Try to keep in touch with the insurance company so as to get early updates and news concerning your policy, answers to your questions amidst others. Know the insurance company payment policy, the kind of payment plan is accepted, when the payment is due and also what would happen for a late payment.

STEP 6

Work the Phones

After gathering information online,try to make contact. Call the companies that you weren’t able to get an online quote.Doing a comprehensive research by phone can actually be easier and faster provided you have your driver’s license and vehicle registration at had then don’t to forget to confirm the price by asking the representative to email a quote to you.

READ MORE: Best Car Insurance Companies With The Lowest Rates In Nigeria

STEP 7  

Keep an eye out for Discounts

Keeping an eye out for a discount can really help you out and serve as an advantage to explore all your options related to discounts. Insurance tends to reward customers for good driving records, proper car safety, better security equipment, professional affiliations amidst others. Some companies of recent even offer low and affordable rates if you enroll in a “pay as you drive “ plans, others have substantial discounts for young drivers in a particular family who have good points. Also, it is advisable to use the same insurance company to get a better price and discount.

STEP 8

Find out more on the Companies

The financial strength of a company is necessary and needs to be considered, you can check which company coverage is the least expensive and also their company-to-customer relationship or their customer satisfaction and get reviews based on it so as to help you know how they treat their customers either well or otherwise as they claim.

STEP 9

Review the Policy

When you’ve done your research and zeroed in on a company, read over the main points of the policy. In addition to verifying that it contains the coverage you’ve requested and priced, it’s a good idea to find out if the policy states that “new factory,” “like kind and quality” or “aftermarket parts” may be used for body shop repairs, according to the Insurance Consumer Advocate Network. If the policy has such a requirement, think hard about whether this is the company for you, particularly if you own a relatively new car that you plan to keep for a while. In this case, it’s best to know at the outset that the insurer will pay for original manufacturer parts rather than try to fight over the issue later when you have a claim.

Step 10

Cancel Your Old Policy

After you have the auto insurance policy you want, cancel coverage with your existing insurance company. If your state requires you to carry proof of insurance, make sure you put the card in your wallet or the glove compartment of your car.

 

Best Car Insurance With Low Rates In Nigeria

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.

Best Car Insurance With Low Rates In Nigeria

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 insure@axamansard.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 uopurum@cornerstone.com.ng 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 info@iginigeria.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 nfo@nigerinsurance.com 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 info@royalexchangeplc.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 info@stacoplc.com, by 01-2952697(Skype) and call on 08150970457.
Conclusion
We recommend that you make carefully read the terms of the agreement or T & C of any insurance product before buying them.