Understanding Insurance: What Many People Don’t Know

Insurance is one of those things we often hear about but don’t really understand until something bad happens. In many parts of the world, especially here, insurance is either underused or not trusted. A lot of people see it as just another money deduction, and when accidents or emergencies happen, they’re unsure if their insurance will actually help them.

Let’s be honest. Many of us don’t read the full details of our insurance policies. Some just get it because it's a requirement for vehicle registration or because it’s part of what a workplace offers. But when it comes to making claims, we find out that what we bought was only basic third-party insurance. In such cases, it only covers the other person’s damage, not yours. This can be very disappointing, especially when you thought insurance would cover everything.

For example, if someone hits your car or you’re involved in a minor accident, most people just try to fix it quietly. Why? Because involving insurance feels like too much stress. In many situations, the process takes longer than expected. Also, the fear that insurance companies won’t keep their promises is real. You hear people say things like, “They said they’ll pay, but I’m still waiting,” or “They keep asking for more documents.”

Another thing people don't know is that there are different types of insurance aside from just car insurance. There’s health insurance, life insurance, property insurance, travel insurance, and even insurance for your phone or electronics. But we hardly explore these options. Sometimes it’s because of a lack of awareness, but mostly it’s because of distrust.

In fact, many people only know about comprehensive and third-party car insurance. Comprehensive insurance covers more, including your car and sometimes medical bills, depending on the policy. But it’s more expensive. Most car owners get that, but drivers, especially those who don't own the car often don’t bother. That’s why if an accident happens, they try to fix things out of pocket instead of calling the insurer.

Insurance policies also differ from state to state and country to country. What works in the UK may not work the same way here in Nigeria. In some countries, insurance works fast and efficiently. Here, however, the system can be slow, and that affects trust. People believe they’re better off sorting out repairs or hospital bills themselves.

But the truth is, insurance is supposed to protect us from unexpected losses. Accidents, sickness, fire, or theft can happen anytime. If more people knew how to get the right insurance and how to use it, we might begin to trust the system more. It starts with awareness; knowing your rights, reading your policy, and choosing the right coverage.

So, while insurance may not seem useful at first, it's better to have it and not need it than to need it and not have it.