WHAT YOU SHOULD KNOW ABOUT VEHICLE INSURANCE

It may sound abnormal for a vehicle owner to think about all the bad things that could happen to them or their car. Planning and preparing for the unforeseen future is not abnormal; it is wise. 

We may not like it, but the reality is that accidents happen, and car damages occur. And it is better if we plan so that we are not left in trouble if these things happen. That is why we need vehicle insurance. 

Here is what and why you should know about vehicle insurance.

WHAT IS A CAR INSURANCE AND WHY YOU SHOULD GET IT

Car insurance is a service that an insurance company provides for car owners to help provide a cushion for the latter if they ever end up in an accident. The Insurance company provides financial protection against damages incurred while using a car. They help by either repairing, replacing, or compensating the car owner based on their insurance type.

In a nutshell, car insurance provides coverage for such cases and protects you from financial loss. Getting insurance for your car is compulsory in Ghana, and you can face prosecution for not complying. So, there is no way around it. You must get insurance for your car.

To help you know which one would be right for you, let us talk about what types are available.

TYPES OF VEHICLE INSURANCE

There are many types of vehicle insurance, some of which are; third-party, comprehensive, uninsured motorist, personal injury, and collision insurance. But the two most popular plans in Ghana are third-party and comprehensive insurance. So, we will focus on t those two.

THIRD-PARTY INSURANCE

Compulsory in many countries, third-party insurance is the insurance you buy to protect others. Here, the insurance companies pay for injuries that occur to other people on your account. Or damage to their cars or other properties that happen because of you. However, the amount paid by insurance companies is based on your agreement. 

COMPREHENSIVE INSURANCE

Comprehensive insurance protects you from any risk related to driving or owning a car. Unlike third-party insurance, comprehensive insurance is not compulsory. However, if you are leasing or purchasing a car by loan, you must buy this insurance. 

This insurance is compulsory for the financing companies to protect the cars they finance. If you fail to buy this insurance, the financing company will add it to your repayment at a higher cost. 

Now that we know what types of insurance exist in Ghana, let us see what it costs to insure a car here.

COST OF VEHICLE INSURANCE

The amount you pay for car insurance is between GH¢ 221-GH ¢576 yearly, depending on your insurance plan, location, insurance company, and vehicle value.

We recommend that you do not under any circumstances undervalue your car so that you can pay less. Because the amount you pay corresponds with how much you can claim if something happens to you or your vehicle.

DOCUMENTS NEEDED TO GET VEHICLE INSURANCE

When you decide to insure your car, be ready to show the following documents, all of which must remain valid throughout the insurance period.

• Car registration documents
• Roadworthiness certificate
• A valid driver’s license and 
• ID card.

VEHICLE INSURANCE COMPANIES IN GHANA

Some well-known insurance companies in Ghana are; Star Assurance, Vanguard Assurance, Phoenix insurance, Glico General Insurance, Old Mutual Ghana, Ghana Life Insurance, Unique Insurance Company, Donewell insurance, Enterprise Life, Hollard Insurance, and SIC Insurance.

We post information about cars, car care, supercars, and car trends. Want to stay in the loop? Get updates by subscribing to our blog.