The Road Traffic Act 1959, makes it mandatory for all vehicle owners to have at least a third party cover to provide compensation for other road users in the event of bodily injuries, death or property damage resulting from the use of the car.
Motor insurance plans come in three categories; Third Party Motor Insurance, Third Party Fire and Theft and Comprehensive Motor Insurance. What is the difference?


Third Party Motor Insurance and Third Party Fire and Theft – Third Party Motor Insurance covers damage to others as the result of an accident that is deemed your fault while Third Party Fire and Theft covers damage to others and loss of vehicle resulting from a fire incident or theft.

Comprehensive Motor Insurance Plan – covers loss or damage to the insured vehicle by fire, theft, and accidental collision, Legal liability for damage to other vehicles and damage to property belonging to Third parties and in some cases medical expenses for both the policy holder and third party.
What You need to know about Motor Insurance in Nigeria

Pricing – as the saying goes, ‘you get what you pay for’. Cost of Motor insurance varies from company to company and the extent of cover is different as well. When buying motor insurance, people tend to compare rates but never bother to find out the extent of cover for each rate and this gap always leads to dissatisfaction at the point of claims.

Depreciation - this simply means that at the point of claim, you get paid the market value of your car and not the value you insured for. Some comprehensive plans use deprecation while others don’t. If you want to get full value at all times, discuss depreciation with your insurer.

Claims – all insurance companies pay claims but the turnaround time is different. While some companies can pay within 48 hours other stay one to three months. It would make sense to discuss turnaround time before signing any contract.

Accessibility and Authenticity – It’s a digital world, insurance companies have website and some of these website are e-commerce enabled. You can also get the list of registered insurance company from the website of the National Insurance Commission; http://www.naicom.gov.ng.

Fraudsters have also taken advantage of the legal backing on Motor insurance to flood the market with cheap and fake insurance plans. Many motorists have fallen victim of this. To check the authenticity of your Motor insurance, visit; http://www.askniid.org or text policy number*plate number to 33125

Find out more, visit http://www.ensure.com.ng