Car Insurance mistakes to avoid
While having car insurance is mandatory in Nigeria since 2003, a premium might represent an important part of your monthly budget. It is therefore essential to know what your policy includes and what not. In order you to pay for the right policy, there are a few common mistakes that you need to avoid when it comes to choose a car insurance.
Opting for the minimum coverage
Minimum coverage may seem like a way of saving money while having your car insured but it in some unforeseen circumstances, such a limited coverage might impact your budget way more than you would have thought. Rather than opting systematically for the minimum coverage, please consider choosing an insurance that will help you to anticipate the costs of an unexpected event (car theft, accident and other unfortunate circumstances).
Choosing the most expensive coverage
This may seem contradictory to the previous advice but it is important to buy an insurance cover that suits your needs, and only your needs. When it comes to consider what coverage you should choose, always weigh up the options that are available. For instance, if you don't drive frequently and if your car is parked in a safe garage, then you are less likely to need an exhaustive coverage. Hence, choose the type of insurance wisely and avoid spending money for benefits you don't need.
Lying on your application form
Tell the truth. Failing to mention relevant information like accidents and traffic violations why you apply for a car insurance might get you a cheaper quote but a lot of troubles too! Indeed, insurers do some research on your claim history in order to process an application, or a claim. If you've lied or left information out by mistake, your declaration could be called into question after making a claim and, in some cases, your policy might be cancelled.
Not bargaining for discounts
Ask your insurance which discounts the company offers and if you are eligible to any of them. In case your are looking for a new cover (e.g. life insurance), always consider purchasing it from the same company that provides your car coverage. Your insurer might value your loyalty and offer you discounts either on your new cover or on your existing car insurance. It is worth trying!
Not doing research
If you're shopping for car insurance, you should know that comparing the rates and benefits of the different insurance companies available in the market will help you to find the cover you need. Also keep in mind that some companies may offer highly competitive prices, the benefits offered might be limited. Doing some research is therefore essential before choosing or renewing your policy, and this is what price comparison platforms are made for. Useful websites like TopCheck.com.ng offer easy and transparent way to compare car insurance quotes thereby gathering all information in a unique platform.