Why You Shouldn’t Use Touts To Buy Insurance

Growing up, I had a best friend. We were so close you just needed to look for one of us to find the other one. After secondary school, I left for the US to go to University. He went to university briefly in Naija then decided it wasn’t for him and went into doing business instead.

When I returned to Nigeria, we reconnected naturally. One day I went to his shop in Ladipo where he sells tires- a very lucrative business but one that looks wretched from the outside- and we took a walk to search for a product I needed.

Suddenly, we walked up to a minivan with a “for sale” sign on it, and someone was sitting in it at the driver’s side. He walked up to the person and asked him how much he was willing to sell the car for.  The man replied “2.3 million”. He priced it down to 2.1 million and the guy agreed. He said he would be back.

I asked him if he wanted to buy the Sienna, and he said “no oh, I want hustle.” Then he got on his phone and called his neighbour.

“Emeka how far? I don see that sienna wey you dey find oh. The man dey ask for 2.5 but I don price am down to 2.3. Make I collect the guy number?”

“Okay. No forget say you go add my commission oh. Okay I go call you back”

I looked at him perplexed. “Boy, man must hustle oh. Na everything we dey use make money here oh”. So how will you make money here? I asked.

“E simple. I don negotiate 2.1m, I go arrange with the guy say them go pay am 2.3 then he go pay me 150k and keep 50k, then I go still collect commission for Emeka hand.”

How the hustling spirit has played into the insurance company

Nigerians are natural born hustlers. We are always looking for ways to make money. After the law about mandatory insurance was passed, some people naturally saw a chance to make money. They began “insurance companies” and registered them legitimately. They simply decided to capitalize on providing a service they knew would give them “free money”. Because they know Nigerians don’t make claims on accidents, rather they beg for forgiveness or pay for the damages. Therefore, all they have to do is work with touts who bring them deals for a commission.

Previously, I use to use touts to register my car for the convenience but I ended up with insurance from an unknown company. However, I know better now, as I actively buy my own insurance myself whenever I renew my license.

It would be fruitless trying to convince you to register or renew your car yourself, as I know most of you are already used to the convenience that comes with paying someone to do it for you. But do you know that the money they collect from you includes a N5,000 mandatory insurance fee? Do you know that you can tell them to do the registration or renewal of vehicle without insurance and then buy the insurance by yourself?

You never want to leave it to anyone to choose insurance company for you. They will simply go to the company that would give them a cut and leave you with a company that wouldn’t be able to give you value when you get in an accident. Furthermore, I advise you to do your research and find reputable insurance companies to work with; there are many good ones out there.

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