How To Get Affordable Car Insurance in Ghana (A Complete Guide)

Drivers in Ghana are required to have car insurance, it is one of the most important things to get before you start driving. It’s not just something to do for legal reasons; it can also protect you financially if you’re involved in an accident.

One of the main reasons why car insurance is so important is that it helps cover the cost of your car or other vehicles in case it gets damaged or destroyed by an accident. Without car insurance, you may be forced to pay for repairs out of pocket, which can be expensive.

The price of insurance can be very high, which is why many people opt for a low-cost but unreliable policy. This may seem like the best option, but it isn’t. You never know when an accident or theft could happen and you would be unprepared.

Are you looking for affordable car insurance in Ghana? If so, then this article might have some helpful tips for you. In this blog post, we discuss how to get car insurance in Ghana that is reliable and affordable.

A brief introduction to car insurance

Car insurance is meant to pay for the damage to a vehicle in the event of an accident, theft, or vandalism. A comprehensive and life insurance policy is also important, especially if you are a driver.

According to some insurance companies, the price of a policy for car insurance varies based on the age of the vehicle, whether the vehicle is a four-wheeler, light or heavy commercial vehicle, year of purchase, make and model of the car, company the car is insured with, the coverage and amount of the premium.

Most of these policies cost around Ghc 500.00 to Ghc 1500.00.

Types of car insurance

When it comes to car insurance, the types of policies you will get vary depending on what type of car you drive.

• Liability coverage

Liability insurance may help cover damages for injuries and property damage to others for which you become legally responsible resulting from a covered accident.

• Collision insurance

Collision insurance may cover damage to your car after an accident involving another vehicle and may help to repair or replace a covered vehicle.

• Comprehensive insurance

Comprehensive insurance can provide an extra level of coverage in the instance of an accident involving another vehicle. It may help pay for damage to your car due to incidents besides collisions, including vandalism, certain weather events, and accidents with animals.

• Uninsured motorist insurance

Uninsured motorist insurance can protect you and your car against uninsured drivers and hit-and-run accidents. This coverage is often paired with underinsured motorist insurance.

• Underinsured motorist insurance

Many drivers choose to carry the minimum in liability coverage to save money, but this might not provide enough coverage. Underinsured motorist insurance can protect you in the event of an accident with a driver whose insurance is not enough to cover the costs.

• Medical payments coverage

Medical costs following an accident can be very expensive. Medical payments coverage can help pay medical costs related to a covered accident, regardless of who is at fault.

• Personal injury protection insurance

Personal injury protection insurance may cover certain medical expenses and loss of income resulting from a covered accident. Depending on the limits of a policy, personal injury protection could cover as much as 80% of medical and other expenses stemming from a covered accident.

• Gap insurance

Car value can depreciate quickly, so an auto insurance settlement might not be enough to cover the cost of a loan. Gap insurance may help certain drivers cover the amount owed on a car loan after a total loss or theft.

• Towing and labor insurance

Available if you already have comprehensive car insurance, towing and labor insurance may reimburse you for a tow and for the labor costs to repair your vehicle.

• Rental reimbursement insurance

Figuring out how to get around after an accident can be expensive. Rental reimbursement insurance helps pay for a rental car if your vehicle cannot be driven after an accident.

• Classic car insurance

Classic car insurance provides specialized coverage designed for the unique needs of vintage and classic car collectors.

Why it’s important to have car insurance

There are many reasons why you may want to buy car insurance, including financial. The main reason why car insurance is so important is that it protects you financially if you’re involved in an accident.

When you’re at the scene of an accident, you’ll be glad to have the right coverage to pay for the damage and get a replacement car.

If you don’t have car insurance, you could be on the hook for paying for the damages on your own. Even if the insurance company doesn’t pay, you’ll have to pay for any repairs out of pocket. This could easily cost more than the car is worth.

If the accident isn’t your fault, you can still get involved in a situation that could jeopardize your car insurance. It happens all of the time and it’s often on account of a driver who has no insurance.

The importance of having a reliable and affordable car insurance policy

First of all, it is important to understand the benefits of having car insurance. There are a number of potential advantages of having car insurance.

Having car insurance will protect you from the cost of any damages that your car or other vehicle sustain from an accident.

Another advantage is that if your car is stolen and you have no insurance, you may not be able to replace the vehicle. For example, if your car was stolen and you don’t have any form of insurance, you won’t be able to get a new vehicle.

Having a car insurance policy will help you ensure that you are covered in the case of theft.

The most important aspect of car insurance is the level of coverage. This is a term that refers to the insurance company’s worth to the driver.

How to get affordable car insurance in Ghana

There are many different ways to get car insurance in Ghana. In order to find the best and cheapest coverage for you, it is best to look at a few different insurers to compare.

This can be difficult since they all have different prices. However, take the following factors into consideration when choosing the right insurance company to insure your vehicle

• Claim Settlement Ratio

Claim Settlement Ratio tells the number of claims settled by a car insurance company out of them all the claims received by it during a financial year.

It is always good to go with an insurance company with a high claim settlement ratio.

• Network of Cashless Garages

Today, insurance companies offer cashless facilities at garages for claims. While choosing a car insurance company, one must check the strength of the network of cashless garages of the insurance company.

Here, the policyholder gets his vehicle repaired at any of the network garages that are included in the company insurance list.

• Financial Ability of the Company

Another key factor here, is the financial availability of the insurance company in which you choose.

Do your private research before going ahead to sign any deal with an insurance company in Ghana.

• Customer Support Service

Most insurance companies in Ghana offer 24/7 customer support whiles others offer 5-day customer assistance services.

Also, get to know what type of customer service the insurance company in Ghana you are choosing offers.

• Online Comparisons

Have to perform a few online comparisons of the insurance company you are choosing. If NO, kindly spend a few minutes of your time to check out a few online comparisons of the insurance company you are choosing.

Besides, this will help boost your confidence and give you a great value on your vehicle with a great return on investment.

• Customer Reviews

A customer review is a review made by a customer who has purchased a policy from the insurance company you intent to choose or work with.

Some car insurance companies in Ghana

Here are a few of the companies that offer the cheapest car insurance in Ghana:

• Star Assurance

Star Assurance Company Limited (“Star Assurance”) is a privately owned Insurance Company incorporated in August 1984 and licensed to carry out corporate and retail insurance businesses in Ghana. It commenced in April 1985.

The Company has been in operation for over 36 year and according to their website, they have twenty-seven (27) branch offices in nine (9) out of the sixteen (16) Regional Capitals, with the remaining seven (7) serviced by their Agency offices.

• ALLIANZ Insurance

The Allianz Group is one of the leading integrated financial services providers worldwide.  They have over 100 million customers in more than 70 countries. They provide a wide range of products, services, and solutions in insurance and asset management.

• Hollard Insurance

Hollard Insurance started operations in Ghana as Madison Insurance in 1993, they were recapitalised and renamed Metropolitan Insurance Company Limited (MET) in 1997.  In 2006, they took the decision to move their focus away from life insurance to other personal and commercial insurance products. In 2015, the Hollard Group acquired a majority shareholding in the company. Today, they have offices in Tema, Kumasi, Takoradi, and Tamale.

Visit their website for more information

• Donewell Insurance

DONEWELL INSURANCE COMPANY LIMITED is a Private Limited Liability Company, owned by the Methodist church, Institutional Investors, Professional Trade Associations and other individuals. The company was incorporated in Ghana on 3rd November 1988 and was registered as an Insurer by the National Insurance Commission on 26th February 1993 in accordance with PNDC Law 227 and commenced business on 1st March 1993.

• SIC Insurance

SIC Insurance is a listed public limited liability company with over 14,000 shareholders. The Government of Ghana is still the largest single shareholder with 40% shareholding. The company is the nation’s largest general insurer and has a nationwide coverage. Its lines of insurance include motor, accident, travel, marine, aviation, fire, and oil & gas.

SIC Insurance Company Limited is one of the oldest non-life insurance companies in Ghana. It traces its roots to the year 1955 when the Gold Coast Insurance Company was established. It was renamed Ghana Insurance Company in 1957 when Ghana attained independence. In 1960, Ghana Insurance Company which was primarily a life assurance company, set up a subsidiary company – Ghana General Insurance Company (Ghana General) to underwrite fire and motor businesses.

The Government of Ghana in February 1962, per an Executive Instrument, took over the Ghana Cooperative Insurance Company and reconstituted it into the State Insurance Corporation to await the completion of takeover negotiations with Ghana Insurance Company and its subsidiary Ghana General. Subsequently, after a successful takeover of the two private companies – Ghana Insurance and Ghana General – the new company, State Insurance Corporation, commenced business in November 1962.

Find more about the products and services here

• Enterprise Insurance

Enterprise Insurance Company Limited is the oldest insurance company in Ghana having been in operation since 1924. It takes its roots from the Royal Exchange Assurance Corporation of the United Kingdom, which commenced business in the Gold Coast in 1924, then became Guardian Royal Exchange Assurance Ghana Limited, (GREG) and subsequently, Enterprise Insurance Company Limited.

Enterprise Insurance is a leading Insurer in Fire, Marine, Motor and General Accident.

Enterprise Insurance’s first offices were located at the current offices of the Institute of Chartered Accountants on what was then Horse Road (and now Asafoatse Nettey Road). In 1952, after 28 years as an agency, the Royal Exchange Assurance was registered as an insurance company in the Gold Coast to provide the full complement of life and non-life insurance business.

Visite their website to read more

Other insurance companies in Ghana include the foloowing

• Priority Insurance

• Serene Insurance
• REGNEM Insurance
• Provident Insurance
• SUNU Insurance
• Vanguard Assurance
• Phoenix Insurance
• Loyalty Insurance
• Millennium Insurance
• Bedrock Insurance

Conclusion

Car insurance in Ghana can be complicated, especially when you don’t know who to talk to. In this article, we talked about why you need car insurance and how to get it at an affordable rate.

If you’re still searching for the right company, we recommend that you do your research first. It is our belief that you can save a lot of money if you find an affordable policy.