$200,000 to $300,000 in auto insurance premiums for a married couple
By KELLY BLEIERMANAPSY, AP WriterAPALA, Nigeria(AP) A Nigerian couple will be able to afford to insure their first car in the new year by paying $200 to $500 a month to a third-party insurer.
The Nigerian Association of Insurance Agents (NIAA) says the fee will be paid by the two men when they apply for an auto insurance policy.
The association says the new policy will be offered by a national insurer.NIAa President Ali Muhammad Mwanala said the new fee will bring the average monthly premium for a single male family to $1,500.
The NIAA estimates the fee is about $3,000 per person per month.
The group is trying to persuade insurance companies to charge a higher fee for women and children.
It has said the fees should not be passed on to consumers.NIGERIA is in a transitional period with the government saying the country needs to find $1 billion in foreign aid to deal with its crippling economic problems.
The new fee comes amid a surge in car insurance premiums in Nigeria.
The average rate in August was $4,934.
Nigeria’s government says it is trying not to pass on any costs to consumers because it believes the fees will help fund the country’s long-term growth.