Today, let’s look at the cheapest cars to insure in 2024. Its awesome that you find yourself here because insurance premium should be a key factor in deciding what car to buy.
In case you don’t know what insurance means, it is a process whereby you protect your property in the incident of unwanted damages.
The protection happens when you can get monetary coverage for lost properties. The compensation helps to reduce the ghastly effect of whatever is lost.
This applies similarly to Car insurance. There are a plethora of accidents that can happen on the road these days. Most of these happenings are unwanted and unexpected, especially the ghastly ones.
Because of the unpredictable nature of the road, one must insure to ensure that your car has coverage in case of an accident.
I’m not here to talk about Car insurance specifically, Let’s look at the cheapest cars you can insure in 2024. Factoring in Insurance premium is key when getting a new or “Tokunbo” car.
Many people end up unable to insure the cars they buy due to outrageous insurance premiums. Therefore, their car lacks any protection or coverage.
More often than not, the more expensive a car is, the higher the insurance rate. So, if you are Mr or Mrs Flashy, you should expect your insurance to flash you in the eyes too.
Let’s dive into the average cost of car insurance in Nigeria. This would give you a near-mirror understanding of what to expect.
Note: A premium is the price you pay for your car insurance. It’s the amount of money you give to the insurance company in exchange for them providing coverage for your car.
Average Cost of Car Insurance in Nigeria
The yearly average premium for car insurance differs amongst various insurance bodies in Nigeria. Each body rates it customer service and trust level higher and this may slightly add cost.
Normally you should get around 3% to 5% of your vehicle’s value.
So, do the maths then. If you purchase a car for N10,000,000. You can expect to pay from N300,000 to N500,000 yearly. In the same vein, if your car worths N50,000,000, your insurance should be somewhere n between N1,500,000 and N2,500,000.
You can testify to the steep rise in the insurance premium. This rise occurs due to factors such as the Cost of the car and the cost of repair.
What happens when your car isn’t the one affected but you accidently incur damage on someone else’s?
That’s where third-party liability insurance comes in.
Third-party liability coverage specifically covers the costs if you hurt someone else or damage their stuff while driving your car.
So, if you accidentally bump into someone’s car and it’s your fault, this insurance helps pay for the repairs or medical bills of the other person. It’s like a safety net for when things go wrong on the road.
Nigerian Insurance Companies usually recommend the third-party liablity coverage along with the car insurance premium. This can also add to the costs of your insurance. Depending on the company, there’s usually a rise in the yearly payment of your insuance.
Top 10 Cheapest Cars To Insure in 2024
The following are the Top 10 cheapest cars in 2024. The premium of these cars would be rated in dollars. This is due to the flunctuating nature of the Naira.
Here they are;
| Vehicle | Average Cost of Insurance Premium |
| Honda CR-V | $1,635 |
| Honda Pilot | $1,726 |
| Ford Escape | $1,734 |
| Honda Odyssey | $1,735 |
| Toyota RAV4 | $1,869 |
| Honda Civic | $1,963 |
| Toyota Camry | $2,014 |
| Toyota Prius | $2,117 |
| Nissan Altima | $2,189 |
| Dodge Challenger | $2,483 |
These are the Top 10 chepaest cars to insure. If your car make or model isn’t here, don’t be sad. That’s why I provided you with a close calculation of the prmium of Insurance companies,
To have a rough idea, calculate 3% to 5% of the purchasing cost to get your insurance premium.
I will provide you with some tips that woud help you find the lowest car insurance premiums in Nigeria.
Tips that Would Help Find the Lowest Car Insurance In Nigeria
The following are the Tips that Would Help Find the Lowest Car Insurance In Nigeria.
- Compare premium estimates from various leading insurance providers.
- Use discounts such as those for safe driving or combining different types of insurance.
- Increase deductibles to align with your financial plan.
- Restrict coverage to your actual needs rather than opting for the highest possible limits.
There are other details that can add to the overall cost. Let’s look into it to give you a better idea of what to expect.
Factors That Affect the Cost of Car Insurance In Nigeria
The following are the factors that influences the cost of car insurance in Nigeria;
1. The Cost of the Car
This is the most important factor regarding the the premium of your car. The more expensive your car is, the more expensive your insurance cost would be. Apart from the price, expensive cars usually cost more to repair.
Hence, if you want to insure, try getting one that won’t break the bank when you decide to insure.
2. Age of the Vehicle
If your car is new (less than five years old), you usually get cheaper insurance. But if it’s older (like 10-15 years), the insurance can cost more, especially for full coverage.
That’s because older cars might have more problems, like breaking down or getting damaged, which can cost the insurance company more money. So, they charge higher premiums to cover those risks.
3. Safety Featues and Anti-Theft Systems
New car stuff like airbags, anti-lock brakes (ABS), and anti-theft gadgets can get you cheaper insurance.
They keep you safer in accidents and make your car less attractive to thieves. Sometimes, gadgets that track your car can even cut your insurance bill by more than 10%.
4. Safety of the Road and Location
Where you live matters a lot for car insurance in Nigeria. If you’re in busy cities like Lagos, where accidents and theft happen more, you’ll pay more for comprehensive coverage.
Premiums in big cities can be 50% higher than in quieter areas. Places with good roads and infrastructure get cheaper insurance.
Places with strict traffic rules enforced by the Federal Road Safety Corps see fewer accidents and lower insurance prices.
5. Deductibles
Deductibles is a different service in insurance that means paying now for future issues. This is little chunk of money you agree to pay before your insurance kicks in.
Let’s say you get into a car accident and it causes N1,000,000 in damage. If your deductible is N500,000, you have to pay that first, and then your insurance pays the remaining N500,000
The higher your deductible, the more you pay out of pocket when something happens.
You can choose your deductible amount. If you pick a higher deductible, your insurance company sees you as less risky because you’re willing to pay more if something goes wrong.
So, they might give you a lower monthly payment, or premium. If you do have an accident, you’ll have to pay more upfront.
If you go for a lower deductible, your monthly payment might be higher, but you won’t have to pay as much if something happens to your car. It’s like balancing how much you want to pay now versus if something happens later.
These are the factors that affect the cost of your premium. I hope you’ve been duly informed. Car insurance is not an option but a necessity.
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Conclusion
Is it safe to say the topic is misleading? There’s no such thing as “cheapes cars to insure”. Your premium would depend on the cost of your car. Hence, every premium is relative to the cost.
Having said that, do you need car insurance? Can’t you just live by faith and expect to be safe?
Well, No.
In the event of something unexpected, coverage is soothing.
Frequently Asked Questions(FAQs)
1. What is risk in insurance?
‘Risk’ in insurance is the “uncertainty of the occurrence of an event that can cause economic losses“.
Other forms of risk among other pure risk, speculative risk, the particular risk and fundamental risk.
2. What type of risk Cannot be insured?
Speculative risks are almost never insured by insurance companies, unlike pure risks. Insurance companies require policyholders to submit proof of loss (often via bills) before they will agree to pay for damages.
3. What is car insurance in Nigeria?
Comprehensive Cover – covers against Accidental Damage to insured vehicle, Fire, Theft, Accidental damage to the Third Party’s vehicle, Accidental Damage to property of the Third Party, Death or bodily injury to the Third Party.
4. What type of insurance is best for car?
Yes, the premium for comprehensive care insurance is on the higher side when compared to the other types of car insurance in India.
This is only because comprehensive car insurance offers more protection for your car than other types of motor insurance.17 Mar 2024
5. What type of car insurance is cheapest?
Fully comprehensive insurance is the least expensive, though prices are influenced by individual circumstances.
