Having adequate car insurance in Nigeria is a smart money-saving move, but there’s no question that it adds to the expense of driving. Due to this, more people are looking for ways to save money on their car insurance. Mainly because a car insurance bill is a monthly expense that doesn’t get smaller, and people tend to consider it complicated.
There have been many changes in the Nigerian car insurance market, but Nigerians can save money and get good insurance deals. This article explores 5 simple ways to save money on your car insurance premium. Some ways would help you save money right away, and others would save you money in the long run.
How Important Is Auto Insurance In Nigeria?
Predominantly, an auto insurance policy helps minimise the cost of unforeseen damages to you and your car, including accidents, theft, etc. In Nigeria, Insurance is usually the last thing on car buyers’ minds because most people don’t consider insurance part of our culture. People would rather have religious leaders say prayers against accidents than get an insurance plan.
While many people think insurance is an unnecessary cost, here are significant reasons why insurance is essential in Nigeria.
- It is illegal to drive in Nigeria without an auto insurance policy.
- It serves as a safety net for you in case of mishaps.
- If anyone gets injured in a crash caused by you, you don’t have to deal with the liability.
5 Simple Ways You Can Save Money On Your Car Insurance In Nigeria
1. Check Various Car Insurance Companies: Prices differ from company to company, and comparing various issuers is one of the best ways to ensure that you are getting the best rate that fits your needs. Consider different types of insurers companies too (people that sell using their agents or independent agents), ask your friends and family to recommend based on their experiences, and then compare plans and pricing.
It’s important to note that asides from saving yourself money, you need an insurance company that would not come up with excuses when you need them, so ask as many questions as possible.
Comparing plans and rates from various car insurance policyholders will allow you to access the kind of cover you want correctly and what you can pay for that amount of insurance cover.
2. Group Insurance: If you own more than one car, this is a great way to save money on insurance. With group insurance, you get to register all the vehicles under your name with one insurance plan. Insurance companies are more willing to offer better deals and discounts when registering multiple cars.
Some companies have this insurance policy, and if you are buying insurance under the company’s name, your employer will have access to a high discount.
3. Ask Questions Before You Buy A Car: Having a sit down with the insurance agent you decide to go with is essential. The kind of car you choose to buy affects your auto insurance premium, and before you buy your next vehicle, it is wise to compare the insurance rates for all the car options you are considering.
While buying an SUV or a flashy sports car tends to be exciting, they are way more expensive to insure than minivans and small SUVs. Insurers sometimes offer discounts when you buy a hybrid or alternative fuel car.
4. Consider Bundling Your Policies: This is such a simple way to save money on auto insurance in Nigeria that people keep forgetting. If you have multiple insurance policies, consider using an insurer that allows you to bundle them. Depending on your insurer, a bundling discount can go as high as 10-25%. Although, there are instances where bundling your insurance might not be effective. For example, bundling a no-frills car and a luxurious car simply means you might not get full insurance coverage for your luxury car.
5. Ask for discounts: Sometimes, the best way to save money on your auto insurance in Nigeria is to just ask for it. Some companies offer various types of discounts. For example, discounts for people who have not had an accident within a time frame, discounts for people who took a driver’s education course, values for the type of car you use, discounts for having anti-theft trackers in your car, discount for students, etc. It’s best to speak to the agent you are working with to know all the available discounts and which ones you qualify for.
Alternatively, you can opt for flexible insurance payment options like; pay as you go, quarterly or even yearly payments; whichever plan works for you is what you should go with.
A car insurance cover doesn’t just protect you from yourself. It protects you from other reckless motorists, protects your passengers from you, and saves you when someone else uses your car.
Suppose you don’t have car insurance yet. In that case, this is something you should consider getting as soon as possible and if you already have one, ensure you keep it alive and renew as at when due because you will be super grateful when it eventually comes through for you.