Comprehensive car insurance is commonly thought of as an extra cost. When an incident occurs and your claim is settled swiftly, the benefits cannot be overstated.
Comprehensive insurance coverage is becoming increasingly vital due to unforeseen occurrences and variables beyond our control; the following are some of the reasons you should get one for your car as soon as possible.
It’s less expensive than we think
A year’s worth of insurance can cost as little as 3% of the car’s value. This means that an automobile valued 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 occurs to your automobile, this is how much you’ll pay for a thorough repair or a full refund.
Note that before a claim is paid, depreciation and administrative fees will be deducted, however, this is minor in comparison 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 substantial damage and not having to pay for its repair.
In the event of a 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 will have peace of mind knowing that your car is fully insured whether it’s parked on the street, in a parking lot, or being driven.
Health Insurance
The majority of insurance policies pay for some or all of your medical bills.
It will also safeguard any 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 all conditions being met.
However, before handing over your cash, make sure that your prospective insurer has a good reputation. Before signing your insurance policy, you should also read and understand the terms. There is normally an “excess clause” that requires you to bear a portion of your claim, but for a small additional premium, this condition can be waived.
Towing service
Most insurance policies include towing coverage, which means the insurance company will cover the entire cost of towing your vehicle as long as it does not exceed the policy’s maximum. You will be responsible for the difference if the towing fee exceeds your budget.
Comprehensive insurance is required for financed auto purchase
If you plan to purchase your car with a loan or other kind of credit, the lender will require comprehensive insurance. This is to avoid a total loss of their investment.
Free or reduced car tracking device
If you have comprehensive auto insurance, you may be able to negotiate a reasonable reduction or perhaps get a car tracker fitted for free. For cars worth N3,000,000 (Three Million Naira) or more, the tracker is usually free.
Complimentary replacement car
Depending on the worth of your car, your insurance provider may provide you with a complimentary replacement car for a few days as an added convenience.
Don’t wait until it’s too late to get that comprehensive auto insurance.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.