If you own a car in Nigeria, you’ve probably heard the term “comprehensive insurance” thrown around a lot. But what does it actually cover? And is it really worth the extra cost compared to third-party insurance?
Let’s break it down in plain, everyday language:
Imagine waking up to find your car stolen, or getting bashed by a Danfo bus on your way to work . These situations can be a nightmare for any car owner, but there is a powerful shield that can protect you financially even if such unexpected events occur; it is called Comprehensive Auto insurance. At CarPaddy, we believe every car owner should understand this crucial coverage. We’ve created this simple guide to explain Comprehensive Auto Insurance, what it covers, and why it is a smart move.
What is Comprehensive Auto Insurance?
Comprehensive Auto Insurance is the highest and most complete form of motor insurance available in Nigeria. Unlike third-party insurance (which only covers damage you cause to other people or their property), comprehensive insurance protects you, your vehicle, properties in your vehicle, other people’s vehicles. In short: It covers almost everything that can reasonably go wrong with your car.
What Does Comprehensive Auto Insurance Cover?
Here’s what you’re typically protected against when you have comprehensive insurance in Nigeria:
- Damage to Your Own Car: This is the biggest advantage. Comprehensive insurance covers the cost of repairing or replacing your car if it’s damaged due to: Road accidents, Collisions, Rollovers. Whether the accident is your fault or not, you’re still covered.
- Theft and Car Hijacking: If your car is: Stolen, Hijacked, Broken into (with parts stolen); Comprehensive insurance can cover the replacement of the vehicle or the cost of stolen parts, depending on your policy.
- Fire and Explosion: If your car is damaged or destroyed by: Fire, Explosion, Electrical faults. Your insurer steps in to handle the repair or replacement costs.
- Damage Caused by Natural Disasters: Comprehensive insurance usually covers damage from: Floods, Storms, Heavy rain, Fallen trees. This is especially important in flood-prone areas of Nigeria like Lagos and parts of the South-South.
- Third-Party Damage and Injury: Just like third-party insurance, comprehensive insurance also covers the following so you’re legally protected and personally covered:
- Damage to other people’s vehicles
- Damage to third-party property
- Injury or death of third parties.
- Vandalism and Malicious Damage: If someone deliberately damages your car: scratches it, smashes the glass, or vandalizes it. Comprehensive insurance can cover the repairs.
- Windscreen and Glass Damage: Many comprehensive policies include coverage for: Broken windscreens, Side and rear glass damage. (Some insurers set a limit for this, so it’s good to confirm.)
What Comprehensive Insurance Does NOT Usually Cover
Even though it’s called “comprehensive,” it doesn’t mean everything is covered.
- Most policies do not cover:
- Normal wear and tear
- Mechanical breakdowns
- Engine damage due to lack of maintenance
- Driving under the influence of alcohol or drugs
- Using the car for illegal activities
Always read the policy document to understand exclusions.
Is Comprehensive Insurance Worth It?
- Comprehensive insurance is ideal if:
- Your car is new or fairly expensive
- You use your car daily
- You want peace of mind
- You live in a high-traffic or flood-prone area
- N.B: While it costs more than third-party insurance, it can save you hundreds of thousands, or even millions of naira in repair or replacement costs.
Here is what makes comprehensive auto insurance special:
Comprehensive Auto Insurance offers the most extensive coverage. Some features that makes it special, for example for Leadway Assurance, includes:
- It doesn’t only cover third party vehicles and property, it also covers accidental damage to your own car.
- Covers Loss/damage to your car by fire or theft.
- Covers damage to another’s property up to 3 million naira.
- It Covers Accidental total and permanent disability to the insured to a limit of ₦1,000,000.00
- Covers your medical expenses including that of a third party’s car’s passenger(s) to a limit of ₦100,000.00 in the event of a hospitalization due to the accident.
- This plan covers up to ₦100,000 for towing your vehicle from the scene of an accident.
Why is Comprehensive Auto Insurance Important in Nigeria?
You might be thinking, “Do I really need Comprehensive Auto Insurance in this economy?” The answer is yes, and here is why:
- Unpredictable weather: Nigeria experiences heavy rains and flooding. Comprehensive Auto Insurance protects your car from water damage.
- Security concerns: Unfortunately, car theft can happen. Comprehensive Auto Insurance gives you financial protection if your car is stolen.
- Road conditions: Our roads can be rough, increasing the chance of accidents on the road. Comprehensive Auto Insurance covers damages caused to your car by collision with other cars.
- Peace of mind: With comprehensive Auto Insurance, you can drive knowing you’re protected financially if an unforeseen accident happens.
How to Get Comprehensive Auto Insurance with CarPaddy?
- Contact Us: Visit our website or download the CarPaddy app (links below), Sign up or Log in….
- Select provider & product: You will need to choose your insurance provider and the product you want to purchase.
- Provide details: You need to fill in your vehicle, personal and insurance preference details.
- Upload documents: You need to have pictures of the four sides of the vehicle, your government ID-Card, and the vehicle licence ready.
- Get your policy & tracking device: You will receive your insurance certificate, policy documents and if applicable, you’ll need to be avaialble for the installation.
Conclusion
Comprehensive insurance is the smartest option if you want full protection for your car in Nigeria. While it costs more upfront, it offers peace of mind and financial security when accidents, theft, or unexpected events occur.
At CarPaddy, we believe every car owner deserves to understand their insurance options before making a decision.
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