October 3, 2022
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AUTO INSURANCE / AUTOMOBILE INSURANCE; EXPLAINED! |

So many of us have heard of Auto Insurance, Automobile insurance and Auto Insurance Lawyers. In this article, we will find out what these terms represent and what an automobile insurance cover. You will also be introduced to the various auto insurance lawyers nearby. So let’s get started!

What is an Automobile Insurance?

An automobile insurance, vehicle insurance or auto insurance is simply insurance for cars, motorcycles, trucks, trailers and other land / road vehicles. Its primary purpose is to make provision for financial protection in cases of accidents, physical damage from collisions and against liability that could arise from accidents and collisions. An auto insurance can be the only hope one has sometimes when involved in a serious accident – fire, death, damage etc. It is highly advisable that you get one today.

In simple terms, an Auto insurance is a contract between one and his insurance company / provider where one willingly pays a monthly premium and in exchange, the insurance provider steps in when an accident occurs or when liability arises to provide financial protection as required. In other words, your losses are fully covered as long as it is within your automobile insurance policy.

Automobile insurance is demanded by law in some states and countries and comes with penalties but in some countries, it isn’t given much importance. However, In Nigeria there are five major categories of car / automobile / auto insurance policies in Nigeria.   

Categories of Automobile Insurance Policies in Nigeria

Third – Party Insurance

The third-party insurance is an easy to understand insurance cover and it is mandatory for all vehicle owners to have this insurance cover. Third-party insurance provides financial aid for third-party vehicles and automobile. This is how it works. If you get into a collision on the road resulting in your vehicle getting damaged and the vehicle of the third-party also getting damaged, your vehicle would receive no assistance whatsoever from the insurance body and all attention will be paid to the provision of assistance to the vehicle of the third-party.

Collision Coverage

In this automobile insurance policy, financial preference is given to your own vehicle than that of the third-party. It is the complete opposite of the Third – Party insurance cover and only your vehicle is given financial protection and you have to sort out the damages on the third – party side and also, if you sustain physical injury, this automobile insurance doesn’t cover it too. You have to get that sorted out by yourself. The main focus of the Collision damage cover here is on restoring your vehicle back to its initial glory before the collision occurred.

Non – Collison Coverage or Comprehensive Coverage

This is another automobile insurance plan that is easily up for grabs in Nigeria. This insurance covers damages on your automobile not related to collision, accidents, crisis or wars etcetera. It only provides financial protection to vehicles, cars and automobiles in situations where damages occur due to natural causes such as fire, flood, theft, debris, storms, vandalism, falling objects, etcetera.

Personal Injury Protection Coverage

As the name implies, this insurance covers the treatment of injuries sustained by oneself in an occurrence of a vehicle accident, collision, fire in insured automobile etc. This insurance also covers compensation of one’s family in terms of fatality whenever necessary.

Comprehensive Car Insurance Coverage

The comprehensive car insurance is an automobile insurance that covers all the categories listed and explained above. That is, with this automobile insurance, third – Party damages, Own vehicle or Collision damages, non – collision damages and personal injuries are fully covered. It is like an all-in-one package that ensures financial protection in all ramifications.

Although we know that the Comprehensive Car Insurance Coverage covers most of the road accidents, it is advisable to note that it does not cover damages caused by crisis, unrests or wars, damages caused by wear and tear of the vehicle parts, damages resulting from drunk driving etcetera.

Now that we know the categories of automobile insurance available in Nigeria, you must be wondering what one needs an Automobile insurance lawyer for. Let’s have a look.

Automobile Insurance Lawyer: Necessary or Not?

In a situation where conflicts arise between the insured and the third – party or insured and the insurance provider, there may be the need to take legal action. For example, if a man has the Personal Injury protection coverage and he fails to understand its limitations, he may begin to demand service above his insurance coverage.

In such a case, conflicts may arise and if it rises beyond control, legal action might be deemed necessary and an Auto Insurance Lawyer (Automobile Insurance Lawyer) might become requested. The best way to avoid auto insurance conflicts is simply to Completely understand the coverage, limitations and full details of your selected automobile insurance policy before getting a contract signed by the Insurance Provider / Company.

Auto – Insurance Conflicts That May Arise

Some other auto insurance conflicts that may arise are:

  • The insurance provider / company denying payments or coverage when an accident occurs.
  • Finding out an entirely different insurance rate after signing a contract showing a different insurance rate leading to disputes regarding insurance rates.
  • Liability conflicts between the driver and his passengers.
  • Insurance fraud such as inflated or exaggerated repair costs, false registration etc.
  • Breach of contract by either one of the parties etcetera.

To avoid the above-mentioned conflicts, one has to ensure that he or she understands in full the details of the insurance policy as failure to do this could lead to extra costs of getting an Auto Insurance Lawyer.

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