Car Insurance in Africa: A Guide to Making the Right Choice

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In some African Countries, having a Car Insurance is a major requirement needed before you can put your Car on the road. This article provides you with the major pieces of information about car insurance in Africa and everything you need to know about Car Insurance.

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What is Car Insurance?

Whenever you hear the term ‘car insurance’ , it simply means all of the frameworks and measures put in place to ensure the financial protection of your car. Why would you want to ensure the financial protection of your car? It’s simple, ensuring the financial protection of your car keeps you confident of your car’s future. What if your car is stolen? What if there was an accident that completely damaged your car? Car insurance answers these questions for you.

What Does Car Insurance Entail?

Car insurance simply entails a contractual agreement between  the owner of the car and the insurance company providing protection against financial loss in the event of an accident or theft. Therefore, as long as you abide by the agreement, the future of your car is secured irrespective of whatever happens to it.

Why Do You Need a Car Insurance?

There are numerous reasons why you need a car insurance.

  1. Financial protection

You need a car insurance to ensure your financial protection. Peradventure you got involved in an accident that injured people, it’s the car insurance that will cover every expenses. It will help pay the hospital bills of those involved in the crash and also help repair your car or replace it in the case of complete write off.

  1. Lease Agents Require Car Insurance

In the case whereby your car is not yet fully paid for, lease agents require two types of car insurance. These are:

  • Collision Coverage
  • Comprehensive Coverage

What is Collision Coverage?

This is a type of insurance that helps cover the cost in a case whereby the car collides with another car or an object e.g. fence. The car is either replaced or repaired depending on the level of damage.

What is Comprehensive Coverage?

The comprehensive coverage on the other hand refers to the insurance that covers a replacement in the case of theft. That is, if the car is stolen.

  1. Car Insurance is mandatory by the government of some particular countries.
  2. In the case whereby your car is used for transportation, car insurance helps if passengers ever get injured in an accident with the car.

Things to Look out for in a Car Insurance Company

  1. Reputation

These days, there is a plethora of car insurance companies springing up. It will be wise to do your own research before partnering with anyone. Ask around, do a quick read on reviews online and of course, read articles like this because that is why we have written this article for you. So you will not make a mistake in making your choice.

  1. Coverage

Car insurance companies make numerous coverages. It is essential that you take your time in analyzing this so as to know the exact coverage that suits your auto needs.

  1. Claim Process

In a case whereby you might have to file for claim in the future, it is important to do your research on how the car insurance company handles claim processes. Of course, you will not want to partner with a car insurance company that is slow when it comes to claim processing.

  1. Benefits

What benefits does car insurance offer? It is important to compare numerous car insurance companies’ benefits so as to know the best that suits you.

  1. Verify the Financial Stability

Before signing that quote from your car insurance company, it is important to do your research about their financial stability. Some Car insurance companies have been on the verge of bankruptcy. It will be bad to fall prey to one.

Advantages of Car Insurance

  1. Assurance of financial liability
  2. Assurance of repairs and replacement
  3. Legal Requirement
  4. Assurance for medical claims
  5. Protects driver and passengers’ liability

Disadvantages of Car Insurance

  1. Coverage Failures
  2. Time taking Process
  3. Prolonged Claim settlements

Companies that Offer the  Best Car Insurance in Africa

There are numerous companies offering the services of car insurance in Africa. It is important to state the fact that not all of them are reliable. This is why I have written this article to help you know the best and most reliable car insurance companies in Africa.

  1. AXA Mansard Car Insurance

Axa Mansard Car insurance offers an affordable comprehensive motor insurance with all the basic coverage including towing cost and medical expenses of up to N25,000.

  1. AIICO Car Insurance

AIICO Car insurance company covers different categories of people namely;

  • Private Vehicle Owners
  • Multiple Family Owners
  • Taxi Owners
  • Bus Owners
  • Delivery Vehicles
  • Commercial Fleets
  1. Custodian and Allied Car Insurance

Custodian and Allied Car insurance policy covers your car, truck, trailer, or motorcycles based on the motor insurance type you choose.

Their vehicle insurance policies include:

  • Comprehensive Insurance Cover: This covers accidental damages, fire, theft, accidental damage to the property of the third-party, death or bodily injury to the third-party.
  • Third-Party Fire & Theft Insurance Cover: This covers accidental damage to only the third-party’s vehicle, death or bodily injury to the third-party.

The Top 4 Car Insurance Companies in South Africa

  1. Santam
  2. Old Mutual
  3. Momentum

Final thoughts

In conclusion, it is important that you engage extra research particularly by reading online reviews on different car insurance companies before making your choice. This is because not all companies that claim that they offer car insurance in Africa are reliable. Some might be on the brink of bankruptcy and falling prey to such will not augur well.


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