The recent enforcement of Third-party Auto Insurance by the Nigerian Police Force has thrust vehicle insurance into the spotlight. Yet, despite its growing importance, misconceptions about Auto Insurance remain widespread. Let’s separate fact from fiction and explore why these myths could be costing you money or worse, leaving you vulnerable on Nigerian roads.
Myth #1: “Insurance Is Just Another Way to Waste Money”
Mention Motor Insurance to the average Nigerian driver, and you might hear something like: “It’s just a piece of paper to show police.” This sentiment reflects a common belief that insurance premiums are simply money down the drain unless you happen to make a claim.
The reality? Auto insurance is not just about getting your money’s worth through claims; it is also about financial protection against catastrophic expenses. Without proper coverage, a single accident causing injury to a pedestrian could lead to medical bills exceeding ₦1 million potentially wiping out years of savings or plunging you into debt.
Insurance is a shield against financial disaster. The true value becomes apparent only when you need it, and by then, it is too late to purchase it.
Myth #2: “All Insurance Policies Are Basically the Same”
Many Nigerians believe that all Auto Insurance policies offer identical protection, differing only in price. This misconception makes people buy Insurance solely based on cost, potentially sacrificing crucial coverage.
The truth is that insurance policies can vary significantly, even within the same category. For example, Leadway Third-Party Auto Base Insurance goes beyond standard third-party coverage by including partial protection for your own vehicle, a feature rarely found in traditional third-party policies.
This enhanced coverage means that if an accident damages both your car and someone else’s, you are not left entirely responsible for your repairs. With coverage up to ₦500,000 for your vehicle and ₦3 million for third-party damage, the difference becomes clear.
Understanding these distinctions can mean the difference between partial and complete financial recovery after an accident. Before choosing a policy based solely on price, carefully review what is actually covered.
Myth #3: “I Need to Purchase Third-Party Insurance Even Though I Have Comprehensive Coverage”
Many Nigerians mistakenly believe they need to buy separate third-party insurance despite already having comprehensive coverage.
The reality is that comprehensive auto insurance already includes third-party liability protection. When you purchase a comprehensive policy, you are covered not only for damage to your own vehicle but also for any accidental damage or injury you might cause to others. Buying an additional third-party policy when you already have comprehensive coverage is unnecessary and results in paying twice for the same protection.
This misunderstanding often leads to wasted money that could be better spent on enhancing your existing coverage or other needs.
Myth #4: “The Claims Process Is Deliberately Complicated to Avoid Paying”
A pervasive myth suggests that insurance companies intentionally create bureaucratic obstacles to avoid paying claims. This belief has created unnecessary fear around the claims process and discouraged many from even attempting to file legitimate claims.
While claims certainly require documentation, we have streamlined our processes significantly to ensure that your claims are processed and paid promptly.
The key to a smooth claims experience is understanding what documentation is needed before an incident occurs. Keep your policy information accessible, know the contact numbers for claims, and familiarize yourself with basic claim requirements. Being prepared transforms what might seem like a daunting process into a manageable one.
Myth #5: “I’m a Careful Driver, So I Don’t Need Comprehensive Coverage”
Many Nigerian drivers believe their careful driving habits eliminate the need for anything beyond the legally required minimum coverage. This myth dangerously overlooks the unpredictable nature of road accidents.
No matter how cautious you are, you can’t control other drivers, road conditions, or unexpected events. That is why opting for Comprehensive Auto Insurance or The Leadway Third-Party Autobase is a smart idea because as a good driver, you must recognize that not all road risks are within your control.
Myth #6: “Insurance Is Too Expensive for the Average Nigerian”
Perhaps the most persistent myth is that quality auto insurance is unaffordable for most Nigerians. This misconception has led many to either forego insurance entirely (despite legal requirements) or purchase fake policies.
The reality is that the insurance is not as expensive as we have been made to believe. With as low as ₦ 15,000 coverage for one whole year (1 year). You can also get our Third-Party Auto Base Insurance, for just ₦30,000 annually – or about ₦82 per day. For context, that is less than the cost of a bottle of coke, yet it provides both legal compliance and meaningful financial protection.
Moving Beyond the Myths
Understanding the truth behind these common misconceptions is the first step toward making informed decisions about your auto insurance. Here’s how to approach vehicle insurance more effectively:
Assess your actual needs: Consider your vehicle’s value, your typical driving patterns, and your financial ability to handle unexpected expenses.
Look beyond the minimum: While third-party insurance is the legal requirement, enhanced options like our Third-Party Auto Base provide significantly better protection for a relatively small additional cost.
Ask questions: Don’t hesitate to request clarification about policy details, exclusions, or the claims process before purchasing.
Review periodically: As your circumstances change, your insurance needs may also change. An annual review ensures your coverage remains appropriate.
The Path Forward
As Nigerian roads become increasingly congested and insurance enforcement intensifies, having appropriate coverage is not only legally necessary but also financially prudent.
Moving beyond these common myths allows you to make decisions based on facts rather than misconceptions.
After all, on Nigeria’s unpredictable roads, peace of mind might be the most valuable asset of all. You can visit auto.leadway.com or say “HI” to +234 812 999 7044 on WhatsApp to get your genuine Auto Insurance in minutes.
