Embedded Auto Insurance In Nigeria and Opportunities for Car Dealerships
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Embedded Auto Insurance In Nigeria and Opportunities for Car Dealerships

Embedded auto insurance works by seamlessly integrating vehicle insurance products or coverage options into a customer's buying experience, typically at the point of sale. 

While buying vehicle insurance at dealerships in Nigeria is not totally new, cutting edge insurance technologies are opening up new opportunities for more choices, transparency and affordability as value-add to vehicle buyers.

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Auto insurance, also called car insurance or vehicle insurance, is an insurance coverage designed to protect vehicle owners and drivers from financial losses that may arise from accidents, thefts, damages, or liabilities related to their vehicles. 

It provides financial protection by transferring the risk of potential losses from the policyholder to the insurance company by paying regular premium payments.

What does Vehicle Insurance typically cover?

Auto insurance policies provide coverages for:

  • Liability - which is the legal obligation you have to others in the event of property or physical harm.
  • Property - such as your car being stolen or damaged
  • Medical costs- These include those associated with injury treatment, rehabilitation, and burial costs.

However, auto insurance may not cover situations like your personal belongings stolen in the process or if a vehicle was damaged or lost for commercial purposes due to your carelessness or a natural disaster like flood. 

Common types of Auto Insurance in Nigeria?

  • Collision Insurance: This is concerned with costs for replacing or repairing your vehicle in the event of a collision. It could be with another vehicle, or a tree.
  • Third-party insurance: This is necessary and is the most fundamental kind of auto insurance you need for your vehicle. With it, you are only covered for losses and damages you cause to another person but not for your own. 
  • Comprehensive Insurance: This covers damages incurred by your vehicle that are not caused by collisions. It includes coverage for theft, vandalism, natural disasters, falling objects, fire, or hitting an animal. It offers broader protection than collision insurance.
  • Uninsured/Underinsured Motorist Insurance: This helps cover medical expenses, vehicle repairs, and other damages caused by an uninsured or underinsured driver.

embedded Auto Insurance In Nigeria

How dealerships can leverage embedded auto insurance?

For dealerships in Nigeria, a growing value proposition is helping customers evaluate costs of buying and maintaining their vehicles in the face of rising hyper inflation. 

Providing them with affordable auto insurance coverage will add a lot of value to car buyers because it helps them minimize maintenance risks, especially with pricey automobiles.

Embedded auto insurance that offers choices and transparency will be a smart play for customer-centric dealers and a seamless savings-oriented experience for customers.

By partnering with Curacel, embedded auto insurance will enable dealerships to seamlessly integrate insurance solutions within their systems to provide customers with the opportunity to shop for and purchase insurance through trusted insurers that suit their taste and budget during the car buying journey. 

Unlike the situation whereby dealerships have to sign up with multiple insurance brokers in order to give their customers a variety of options for auto insurance policies, Curacel's AI-powered insurance distribution infrastructure offers a rich network of insurance brokers across Africa which provides ample options, price comparison and best rates.

The global embedded insurance market is expected to reach $3 trillion by 2023, according to technologist Bill Malloy. A large proportion of that value is likely to come from embedded vehicle insurance as it is one of the most sought-after insurance coverage in Nigeria. 

Insurers and dealerships now have the opportunity to expand their technological capabilities and build stronger customer relationships by leveraging Curacel's leading insurance infrastructure to offer innovative products and redefine customer experience across online and offline touch points. Talk to our team now.

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