9 reasons why you should have comprehensive car insurance
Comprehensive auto insurance is generally considered an additional cost. When an incident occurs and your claim is resolved quickly, the benefits cannot be overstated.
Comprehensive insurance coverage is becoming increasingly vital due to unforeseen events and variables beyond our control; here are some of the reasons why you should get one for your car as soon as possible.
It’s cheaper than you think
A year of insurance can cost as little as 3% of the car’s value. This means that an automobile worth N2,000,000 (two million naira) will cost N60,000 (sixty thousand naira) per year or N5,000 (five thousand naira) per month to insure.
If something happens to your automobile, here’s how much you’ll pay for a full repair or a full refund.
Note that before a claim is paid, depreciation and administrative costs will be deducted, however, this is minor compared to the potential loss.
It will save you a lot of money in the event of an accident.
Imagine a situation where your car suffers major damage and does not have to pay for its repair.
In the event of total loss or damage due to fire, theft, flood, accident, vandalism or other causes, you will be reimbursed by the insurance company.
Peace of mind
You’ll have peace of mind knowing your car is fully insured, whether it’s parked on the street, in a parking lot, or being driven.
Most insurance policies reimburse some or all of your medical expenses.
It will also protect third parties who have been harmed as a result of the damage you have created.
If you have a valid claim, you will be compensated
In Nigeria, there is a widespread belief that insurance companies will not pay your claim. This is far from the case since most claims are resolved within 48 hours of meeting all conditions.
However, before handing over your money, make sure your potential insurer has a good reputation. Before signing your insurance policy, you should also read and understand the terms. There is normally a ‘deductible clause’ which requires you to bear part of your claim, but for a small additional premium this condition can be waived.
Most insurance policies include towing coverage, which means the insurance company will cover the full cost of towing your vehicle as long as it does not exceed the policy maximum. You will be responsible for the difference if towing costs exceed your budget.
Full insurance is required for the purchase of a financed car
If you plan to buy your car with a loan or other type of credit, the lender will require comprehensive insurance. This is to avoid a total loss of their investment.
Free or discounted car tracking device
If you have comprehensive car insurance, you may be able to negotiate a reasonable discount or perhaps have a car tracker installed for free. For cars worth N3,000,000 (three million naira) or more, the tracker is usually free.
Free replacement car
Depending on the value of your car, your insurer may provide you with a free replacement car for a few days for your convenience.
Don’t wait until it’s too late to take out this comprehensive car insurance.