Car Insurance for Company-Car insurance policy protects the insured vehicle against any potential damages that may be caused by accident, fire, theft or natural disasters. It can also cover you against any damage that you may cause to another person’s vehicle or property (Third Party).
May be you just got a new vehicle for your company and you are wondering how much vehicle insurance costs or you have been insured but you are looking for an insurance company with a cheaper rate.
Worry no more, this article will give you a glimpse of what Car Insurance for Company is all about and how you can get your vehicle insured with ease.
Car Insurance for Company-Why You Need It.
- To protect you against financial loss
- Helps to reduces expenses
- Easy access to loans from Auto lenders
- Covers the losses and damages done to your passengers or third party.
Types of Car Insurance for Company
Now a days, different insurance companies have developed some auto insurance plan to serve their customers well. But no matter the auto plan that some insurance companies may have come up with, all of it falls under these ones listed below.
1. Comprehensive auto insurance
This is the type of car insurance coverage that provides protection to the insured card against accident, theft and other related problems that may lead to the damage of the insured vehicle. Comprehensive as the name implies means it covers both the insured car and the third party’s car.
2. Third party auto insurance
This is the type of auto insurance that covers only the third party’s damages and losses. A third party could be your passenger or somebody’s car. One major disadvantage here is that the insurance company will fix the third party’s car, living you to fix your own car.
3. Third party, fire and theft insurance
This type of insurance policy works more like a third party insurance coverage but then it covers your vehicle when damaged by fire or when stolen.
4. Third party auto base
This type of policy covers everything under third party insurance coverage but covers partial damages done to your car up to a specified amount. Usually between N200K -N500K
5. Vehicle third party insurance only
This plan also gives you partial protection from damages caused by accident even if you are at fault.
6. Motor Trade
This plan covers motor traders and garage monitors. These group of people requires a special coverage to vehicles that is put under their custody. The insurance also extends to any damage against the insured vehicle during road tasting.
Vehicle Insurance Requirement-What You Need To Get Your Company Vehicle Insured
If you just bought a new vehicle for your company and you are looking for what it takes to get the vehicle insured, below are the processes you can take to get the vehicle insured.
- Get a proposal form containing quotes from the insurance company
- Fill the proposal form accordingly with your signature
- Be aware that some insurance companies in Nigeria will not insure your car if the value of the car is not up to N500k
- You must provide an engineer report for second hand vehicle
- Current vehicle license
- Means of identification.
- The value of the car
- The chassis number
Type of Vehicles to be Insured
You can insure virtually any type of vehicle provided it meets the insurance company’s requirements.
Below are some company’s vehicle that you can insure.
- Commercial Vehicles: Taxi, buses and hired cars
- General cartage Vehicles: Trailers
- Motor cycles
- Bulldozers: construction workers
- General and all purpose vehicles
What you should know before you buy an insurance coverage for your company vehicle.
- You should be aware that the value of the vehicle will determine the amount of the insurance premium and rates. So the higher the value of the vehicle, the higher the premium.
- In Nigeria, if the worth of your vehicle is less than N500k, you may not get insured under comprehensive car policy
- You may get discount from some insurance company if you want to insure more than one vehicles.
- The more miles you drive per year the more likely the insurance company is going to charge you during your policy renewal.
- If you install anti-theft device on your company vehicle, the price of your premium will get cheaper because your insurance policy will no longer need theft coverage.
Don’t assume you are wasting money, trying to insure your vehicle, what you are actually doing is that you are preserving the future of your company vehicle.
Just because your company have no record of car theft or accident should not give you the confidence to ignore getting your car insured. Accident can happen at any time and it does not ring bell.
Car Insurance for Company Rates
The truth is, insurance companies will rather want you to contact them for policy quotes instead of making it public. You can hardly find their policy rates and quotes on their websites or on any public domain.
The reason behind this is best known to the insurance companies. In this article we will look at some insurance companies in Nigeria and their car policy rates.
Car Insurance rates in Nigeria and the companies that offer them
AXA Mansard has 4 main car insurance plans namely: Autoflex, Autoplus, Autoclassic and Autogo
Autoflex: This plan is for private saloon cars and SUVs with a “third party property damage of up to N1,000,000. It has a compulsory cover, Car theft, Car damage by fire and car damage by accident. In addition to the above compulsory covers, you have options to choose one or more of the following options.
- Flood damage
- Towing benefits
- Excess buy back
- Vehicle tracking
- Strike, riot and civil commotion
Auto Plus: Under this plan, if your car is worth N2.5m, the estimated rate would be around N150k. AXA Mansard offers a comprehensive car insurance plan under this plan that covers
- Car theft
- Accident damage
- Flood damage
- Fire damage
- Towing benefits
- Excess buy back
- Strike, riot and civil commotion
- Vehicle tracker
- Medical expenses and
- Third party coverage (N2,000,000)
Auto Classic: This plan covers four major areas while others are optional. The four major coverage under auto classic are:
- Accident damage
- Fire damage and
- Third party coverage (N1,000,000)
Auto go Auto go
This plan covers:
- Car theft.
- Third party property damage of up to N1,000,000 and
- Third party injury and death of up to N60million
In general, if you have a car that is worth about N2.5m) you are expected to pay an estimated annual insurance fee of about N150,000 (Auto flex), N112,500 (Auto Plus), and N78,750 (Auto Classic).
Cornerstone Insurance have 3 Car insurance plan as at 2021, namely:
- Auto classic (You are expected to pay an amount of up to 1.75% of the value of your vehicle)
- Auto plus (You are expected to pay an amount of up to 3% of the value of your vehicle)
- Uber classic (You are expected to pay an amount of up to 2.5% of the value of your vehicle)
Each insurance company in Nigeria have it own unique auto plan. Their auto plan is not constant. They can decide to change their plan any time.
Sometimes, as they change their plan, they change their rates as well. Other Insurance companies like IGI Nigeria collects an estimated rate of N125,000 Rates annually for any vehicle worth N2.5M
Best Vehicle Insurance – Comprehensive or Third party?
When looking for insurance coverage for your company vehicles, understanding the conditions attached to any car insurance policy will help you to make a better decision about your vehicle.
Let’s explain the difference between the two major types of car insurance policies (comprehensive and Third party) so that we can help clear your doubt about which one among the two to sign up for.
The difference Between Third Party and Comprehensive Car Insurance.
Third party car insurance policy covers a policyholder against damages and losses done to another person’s car- while comprehensive car insurance policy covers the policy holder against damages done to his own car, injuries or losses and the third person car.
Comprehensive Car Insurance policy
Comprehensive car insurance is the best since it covers both the damages done to your car, your losses and the damages done to the third party’s property.
It is the preferred choice because if you mistakenly bash another person’s car and your car is under third party coverage only, the insurance company will only fix the third party’s car living you to fix your car by yourself.
- Covers covers against accident damage to the insured vehicle
- It covers both theft and fire to the insured vehicle
- It covers accidental damage to third party’s vehicle
- It covers both death or injury to third party.
- It’s comprehensive and cost effective.
- Protection could also include damages done by natural disaster like earthquakes, floods, droughts, hurricanes etc
- It does not provide damages due to aging
- It’s expensive compare to third party insurance policy
- It sometimes does not provide coverage done due to nuclear attack or war.
- It does not provide coverage for damages done due to driving under the influence of alcohol
- It does not provide coverage for damages done due to driving without driver’s license.
- It does not provide coverage for damages done after the initial damage assessment.
Third-Party Car Insurance
Here in Nigeria, the 1950 motor Act mandates that every vehicle in Nigeria must have at least a third party insurance coverage. This is just to give you a glimpse of how important vehicle insurance are in Nigeria.
Third party car Insurance covers against accidental damage done to third party’s vehicle only, or damages done to the properties of the third party. sometimes it can include death or injury done to the third party.
- It covers third party’s damages or losses
- Less expensive when compared to comprehensive car insurance
- You are under the protection of the law.
- Covers on the third party
- Drinking and driving is excluded
- Driving without license is also excluded
Each policy has its own benefits, limitations and exclusions. It’s your choice to choose your policy coverage according to your pocket.
How Comprehensive vehicle insurance work in Nigeria
A comprehensive auto insurance provides the widest cover against fire, theft and other damages done to your vehicle.
It also covers death, or body injury that the insured car may cause to another person (third party) Comprehensive car insurance policy is sold by some major insurance companies in Nigeria.
Before you consider signing up for comprehensive insurance policy, you must make sure that you have your Driver’s license ready (not expired) and your National Identity Card (NIC).
These are the two major means of identification that qualifies you to get comprehensive insurance coverage in Nigeria.
Just like other Insurance policies, when buying comprehensive car policy, you are expected to fill out the know your customer form which contains:
- Your Personal Information
- Your means of Identification
- Your Vehicle details and the
Other forms to fill may include:
- Motor proposal form
- Insurance physical inspection form
Major Insurance Companies that Offers Comprehensive Vehicle Insurance in Nigeria
Almost all the insurance companies in Nigeria offers car Insurance coverage, here we will provide the major companies that offers the best coverage when it comes to car insurance policies.
- AXA Mansard Insurance plc
- Leadway Assurance
- Custodian Insurance
- Allianz insurance
- NEM Insurance
- Consolidated Hallmark
- AIICO Insurance
- Mutual Benefit
Comprehensive Vehicle Insurance Claim Process
If it happened that you crashed your car or someone else bashed your car and you want make a claim to your insurance company, the first thing to do is to:
- Notify the Insurance company about the level of damage done to your vehicle or the third party’s vehicle.
- Take pictures if need be, to gather enough evidence.
- Get a claim form from the Insurance company.
- Fill the claim accordingly.
- Provide all necessary document depending as requested by the insurance company
- Submit the claim to the insurance company.
- Wait for the Insurance company to carry out their investigation
- After investigation, the insurance company will process your claim.
- Get your payment.
How does third party insurance work in Nigeria?
Third party car insurance plan covers the insured vehicle against any legal case, damages or losses done to third party.
For example, if I have a car and my car is under third party insurance coverage, and mistakenly, my car hit another person’s car. Insurance company will fix the person’s car and pay for damages done to that person’s car living me to fix my own car.
Some sections of the Nigeria constitution mandates that every vehicle in Nigeria should have at least a third party insurance coverage (Insurance Act 1950) The Act states that it is a criminal offence not to have at least a third party insurance coverage.
So as a Nigerian, have it in mind that if you own a vehicle and your vehicle is not under any insurance coverage, and then by mistake your vehicle kill somebody or caused damages to another person. If you are taken to court, you are likely to face a criminal charge.
How to get third party Insurance policy in Nigeria
Just like Comprehensive insurance coverage, third party insurance policy is sold by most insurance companies in Nigeria to cover liabilities arising from accident on third party property damage.
To buy a third party insurance coverage, you will need to complete the “Know your customer form” which contains your personal information, your vehicle details, means of Identification and quote.
Before filling the form, you should be sure that your Vehicle number, National Identity Number(NIMC) and your Driver’s license ready
Major insurance companies in Nigeria That offers vehicle third party Insurance policies
- Leadway insurance
- AXA Mansard Insurance
- Cornerstone insurance
- Allinaz Nigeria
- Nem insurance
- AIICO insurance
- Mutual benefits insurance
How to know if your vehicle insurance is fake or original
There are many fake insurance agents out there which their main duty is to take advantage of people’s ignorance and rob them of their hard earned money.
To reduce the level of scam in the insurance industry, Nigeria government introduced a system where you can always confirm the authenticity of your insurance policy.
To confirm if your insurance certificate is original, just visit Nigeria Insurance Industry Database(NIID) website and provide your vehicle registration number and policy certificate number, there you will get a confirmation message informing you if your policy is fake or original.
The second way to confirm the authenticity of your certificate is to just dial *565*11# on your mobile phone using the same phone number you used during your registration process.
After dialing the short code, you will be required to provide your vehicle registration number. A message will come telling you the statues of your insurance certificate.
Sample of a vehicle claim form
Below is a typical vehicle insurance claim form that you can use as a guide when making a claim from an insurance company
Third party insurance coverage is only beneficial to a third party, however, it saves the policyholders the risk of repair or damages done to third party.
It is also cheaper compare to comprehensive insurance coverage. Depending on the type of vehicle, the lowest amount you can spend to insure your car in Nigeria is N5k.