What Comprehensive Insurance Is Best?

Dear Insurance Info,

I drive a Toyota Camry LE 2010. So please what type of Insurance cover do you think I should get on comprehensive Insurance?

Regards,

Jibola Bello

Dear Jibola,

Thank you for taking out the time to write. I don’t know if you just bought the car or if it is an old car. If it’s a new car, then congrats on your new car.

Your decision to insure it is a smart one for several reasons. Due to the higher exchange rate, cars are now getting very expensive. A car you bought for N3,000,000 when dollar was exchanging at N360 to $1 will now sell for N5,400,000 at N650 to $1. It is incredible because cars are supposed to depreciate in value with time. But due to the declining power of our money, it is actually appreciating.

So if you suffer an accident that totals your vehicle, you woulld need N5,400,000 to purchase a similar car. But if you had insured it for N3,000,000.00, then you would at least get N3,000,000.00 to start with.

This then brings me to the need to reevaluate the value of your car at renewal of your car insurance. This is to ensure it is being insured at the right price, of course that comes at a additional price. You can read more about that from our previous posts.

Now to answer your question. What type of comprehensive insurance is best? With Comprehensive insurance, anything that happens to your car would be fully covered. Most times, it covers all issues except mechanical issues. But it is best to check with insurance company to ensure it covers flood, fire and riot. If you live in states that flood such as Lagos state, then it is imperative that you have flood. Also, with elections around the corner, it is important to include riots.

Recommended: Why You Should Get Excess Buy Back

I would advise you to ensure you fully insure the vehicle. This would save you a lot of money in the event that you lose the vehicle. Please be wary of the people that will tell you that it is best to put a car tracker on the vehicle. I have already rebutted that in an article I wrote a while back; 5 reasons why car insurance is better than car tracker.

Do you have questions about car insurance or need guidance on how to go about making successful insurance claims? Do you have any question you would like us to answer? Email us at Insurance Info.

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