Is Third Party Car Insurance Your Best Bet?
It is a punishable offence to drive without an insurance coverage in Nigeria. This is a legal measure that aims to protect the interests of all road users in the case of a road mishap. Moreover, the penalty for having no auto insurance when you get pulled up is as high as N250,000 or a one-year jail term.
Meanwhile, on a light note, the average low to middle class Nigerian would rather manage their resources, while trusting God to protect them from crashing, than spend so much on auto insurance coverage. As a result, third party insurance cover, which is the least expensive auto policy available, is a very popular choice for car owners.
Third party insurance gives the insured just enough coverage to satisfy the law and avoid getting into trouble. Being the minimum required level of auto insurance that anyone can get, it still cushions you from the costly effects and lawsuits that may follow if you get involved in a crash.
Before choosing to buy third party coverage however, you should be well informed as per the limitations and inadequacies that make it cheaper than its full or comprehensive counterparts.
The Limitations
- Third party insurance does not cover you in the event of an accident, just the other person involved. You would be responsible for your own hospital bills as well as the cost of repairing your car. Your coverage would only take the burden of fixing the other person’s car and their medical bills off you, if any.
- If your car develops a grounding fault while under full coverage, the insurance company would buy you another car of equal or less value. Likewise, if your car gets stolen, they would give you money to rent a car for a period of time while you sort out your car issues. All of these do not apply when you only have the third party coverage.
- If your tyre goes flat or your car develops a mechanical fault in the middle of nowhere, under a full coverage, the insurance company would arrange for a tow truck to move your car to safety. This and other perks do not apply under the third party coverage.
When It Is Advisable
When some time has passed on your car, with wear and tear setting in, then third party coverage is sufficient. Buying full coverage at this point is actually not cost-effective and need not be pursued.
An old car with a lot of loose screws and high mileage is hardly worth paying Collision Coverage for; the amount you would receive in the instance of a crash may not justify the premium that you paid.
Whatever the case may be, third party insurance is the least you can do to be on the right side of the law while you drive, so get it done now. Compare quotes now on www.icomparemoney.com to get the best deal out there.
