3 Ways Insurance Will Save You Money

A lot of people still do not believe in car insurance in Nigeria, due to the bad reputation the industry has had. I don’t blame them, because I was a skeptic myself until about 3 years ago. Today I know that insurance works because I use it. So I have put together 3 ways insurance will save you money.

Insurance pays to fix or replace your car

The primary reasons you get insurance is in case something bad happens to your car. In the event of an accident or your car is stolen, the insurance company would pay to fix or replace your stolen car. This would save you a lot of money that would have come as an out of pocket expense. Particularly in this post Covid 19 era. Naira is crashing which means it would cost a lot more to replace your car in the future. For instance if you bought a car for $5000 when dollar was at N200, it would have cost you N1,000,000.00. Today dollar is at N400, which means if the car were still at $5,000.00 then it would cost N2,000,000.00.

If that car gets stolen, then you are going to have to pay twice as much to replace it. If however, you have insured the vehicle for market value, then it would cost you nothing to replace the car. Nothing, except your insurance premium of course.

Recommended: Why Comprehensive Insurance Is Awesome

Insurance pays for damage to other’s vehicle

Most Nigerians do not understand how the third party insurance policy works. They hit someone and they begin to beg for forgiveness. In reality, your third party liability insurance would cover you in the event that you hit someone’s car or property.

This is the most frustrating part for me. We pay for a product but we don’t even use it. We allow the big insurance companies to walk away with free money. The next time you damage a person’s car while driving, please use your insurance to pay for the damage. Do not pay out of pocket to cover a damage you have already insured. The best part is that you don’t have to have comprehensive insurance to take advantage of this. Just make sure you are using a legitimate insurance company.

See Also: 4 Things That Could Be Covered By Liability Insurance

Save Money from Police extortion

When a police officer stops you and asks for your insurance, not having insurance will automatically guarantee that you will “settle”. I remember when I moved back to Nigeria. I bought a Toyota Camry with tinted glasses. Every time I was on the road, I was stopped by the police because using Tint is illegal. Every time, they would frustrate me until I gave them something. In one case the man even forced me to go back to their station to meet with the DPO. I looked at the time and cost involved, and I made a decision to remove the tint. The cops stopped disturbing me, and I had my time and money back to myself. If you don’t have insurance, be ready to waste your time and money.