Today let me show you how you can pay for car insurance in Nigerian and also calculate the Insurance value of your car. that 3 ways you can insure your car in Nigeria left to accident that require.
Take for instance if you insure your car against accident, if you have accident you will report to police. Then police will investigate if the accident is intentional or not. Then you will inform your insurance company only if your agreement with the company and you also pay your premium. The insurance company will send a team of investigators from what they call Claim department for further investigation.
If the accident involves another vehicle, it is the duty of Police and insurance claim department to check who is at fault. If the person that hit your car is at fault insurance claim department force the person (that is his own insurance) company to repair your car.
The cost of car insurance in Nigeria we are going to take Land Rover Discovery HSE of about $69.8k or
A car is not only ensure for accident, theft or fire but also against third party damage loss of personal items and bodily injury. If you have an expensive car, natural disaster against your car is also covered by insurance company. Some insurance agreement also covers car buyback at the time of the accident.
To pay for insurance car in Nigeria we used Range Rover 25 million Naira price as a benchmark.
1. The insurance company will calculate Registration year.
2. The insurance company will calculate fuel consumption.
3. The insurance company will check the Shownroom price.
4. The insurance company will check rto, car variant.
5. The insurance company will calculate fuel age of the Car.
6. The Insurance company will check the State where you live
To calculate the car insurance premium you have to pay for 25 million car let's see the following.
You will like Types of Insurance
a) Starting with the car age and depending on the Insurance company.
If in 2019 you want to ensure 2017 Land Rover
We use a formula P1Million x 100%(-x Xyear exceeding %)
where P= Premium amount
X= Age of car calculated below
X= 5% - not exceeding 6 months.
X= 15% -exceeding 6 months but not one year
X= 20%- exceeding 1 year but not two years
X= 30%- exceeding 2 years but not 3 years
X= 40% - exceeding 3 years but not 4 years
X= 50% excluding 4 years but not 5 years.
Let's solve some mathematics P1 million dimes hundred percent minus X year exceeding %
For one year old = 20% then 100-20=80%
P1 million X 80%=P800000
we also have own manage and theft 1.25% to 3.75%.
Theft only 1%
Fire only 0.5%
Deductible of 0.5% os Sum Issued(SI)
if your damage factor stands at 7.5% then P800000X3.75%=P30000
Insurance company use what they called insured declare value IDV
here P30000 + discount like 50%.
After going details into the calculation, we arrive at P= N2mill -discount + 1.8 million.
So the basic Car insurance for 25 million naira car stands at N1.8 Million annual.
We further add factors like road, weather, frequency record of accident and so on.
Some Insurance Companies in Nigeria and their Premium estimated price range for 25 million
1. axa Insurance Company.
basic premium insurance stands for N1.8M
Auto Plus package N1.8M
Auto Vintage package N1.34Mk
Auto Classic package N950k
2. Niger Insurance
Basic Insurance package N1.2M
See the way Nigerian Insurance Operates
Comprehensive Standard package N1.34M
Comprehensive Plus package N1.64M
3. Law Union and Rock insurance
Comprehensive Standard package N1.8M
Comprehensive Plus package N1.92M
4. Old Mutual Insurance
Normal Insurance package N1.5M
Comprehensive Standard package N1.8M
comprehensive Plus package N1.93M
5. Cornerstone Insurance
Auto Bronze Premium package N910k
Auto Silver Premium package N1.04M
Auto Gold Premium package N1.2M
Disclaimer: This price range is stand to change at any moment or time. There is no standard premium price for any insurance company but roughly estimate. Insurance premium is just like bank interest and rates. But you get an idea how it work. Seek professional advice from your insurance brooker first.