Learning about Comprehensive car insurance is one of the most important things you can do after getting a car. Think of it as a superhero shield for your vehicle.

The global motor vehicle insurance market is projected to reach $940.79 billion in gross written premiums.

When you are on the road, anything can happen. Having the right insurance means you have a powerful backup plan. It protects you, your car, and your money from big troubles after an accident.

This guide will explain everything about car insurance in Nigeria in a simple and clear way, so you can feel confident and smart about it.

We will explore the different types of car insurance in Nigeria, including how much they cost.

We will find out “How much is comprehensive car insurance in Nigeria” and “how much is Third party car insurance in Nigeria.”

We will also share tips on how to pick the “best car insurance in Nigeria” and show you exactly how to “check car insurance in Nigeria” to make sure your policy is real. Let’s get started on becoming a car insurance expert!

What is Car Insurance Anyway?

Before we dive deep, let’s understand the main idea of car insurance in Nigeria. It might sound complicated, but it’s actually a simple and clever concept.

Imagine you and your friends all have bicycles. You all agree to put a small amount of money, say ₦500 each, into a big jar every month.

One day, one of your friends, Tunde, has a bad fall and his bicycle wheel gets badly bent. Fixing it costs ₦4,000, which is a lot of money for Tunde to pay all at once.

But because you all have the money jar, you can take ₦4,000 from the jar to fix Tunde’s bike. Everyone contributed a small amount, so one person didn’t have to face a big cost alone.

The average spending per capita on car insurance worldwide is estimated at $120.42 in 2025.

Car insurance works in a very similar way! Many people (the car owners) pay a certain amount of money, called a “premium,” to an insurance company.

The insurance company pools all this money together. If one of those car owners has an accident, the insurance company uses the money from the pool to pay for the repairs and other costs.

So, car insurance is a promise. You pay a small, regular amount, and in return, the insurance company promises to cover your big financial losses if something bad happens to your car.

The global motor insurance market is expected to grow at a 6% CAGR between 2025 and 2030.

It is a way to share risk so that one person does not have to carry the entire burden of an accident. It is a legal requirement in Nigeria, but more importantly, it is a smart way to protect yourself.

Types of Car Insurance in Nigeria

In Nigeria, when you want to buy car insurance, you will find there are mainly three levels of protection you can choose from.

Think of them like different levels in a video game – one is the basic level you need to play, and the others give you more power and protection. Let’s break them down.

1. Third-Party Insurance (The Must-Have Basic Level)

This is the most basic type of car insurance Nigeria offers, and it is the minimum level required by law. Every car on a Nigerian road must have at least Third-Party insurance. But what does “third party” even mean?

Imagine you are in an accident. In that situation:

• You are the first party.
• Your insurance company is the second party.
• Anyone else involved in the accident (the person you hit) is the third party.

So, Third-Party insurance does not cover YOU or YOUR car. It only covers the costs for damage or injury you cause to other people and their property.

• What it covers: If you accidentally hit someone else’s car, this insurance pays to repair their car. If you damage someone’s property, like their wall or shop, it pays for that too. It also covers the medical bills or compensation if someone is injured or worse because of the accident.
• What it does NOT cover: It does not pay a single Naira to repair your own car. If your car is stolen or gets damaged by fire, this policy will not help you.

How much is Third party car insurance in Nigeria?

The price for this basic cover is fixed by the government’s insurance regulator, NAICOM. For private cars, the cost is a flat rate of ₦15,000 per year. It is affordable because its coverage is limited, but it ensures you are legally on the road.

2. Third-Party, Fire & Theft Insurance (A Smart Upgrade)

This is the next level up. It is a smart choice for people who want more protection than the basic legal minimum but are not ready for the full package. This policy gives you everything the Third-Party insurance offers, plus two very important extra shields for your own car.

• What it covers: It covers all your liabilities to third parties (damage to their car, property, and their injuries). Additionally, it covers YOUR OWN car if it is stolen or if it gets damaged in a fire.
• What it does NOT cover: This policy still does not cover the cost of repairing your car if you have an accident that is your fault (like hitting another car or a pole).

This is a good middle-ground option. It protects you from the very common risk of car theft in Nigeria and the unexpected disaster of a fire, giving you more peace of mind.

3. Comprehensive Car Insurance (The All-Star Package)

This is the main event, the highest level of protection you can buy. Comprehensive car insurance is the ultimate shield. It wraps your car in a thick blanket of protection, covering almost every kind of risk you can think of.

• What it covers: It includes everything from the Third-Party, Fire & Theft policy. But the biggest and most important addition is that it also covers the cost of repairing your own car after an accident, no matter whose fault it was. If you bump into someone, or someone bumps into you, or you accidentally hit a wall, this policy pays for your repairs. It also often covers damage from floods, vandalism (like someone purposely scratching your car), and other accidental damages.

This is the best choice if you want total peace of mind and want to fully protect the money you invested in your car.

A Deep Dive into Comprehensive Car Insurance

Now, let’s zoom in on the star of the show: Comprehensive car insurance. Why do so many people who truly value their cars choose this option? Let’s paint a clearer picture.

Imagine you just bought a car you love. It’s your pride and joy. You use it to get to school, work, or visit family in places like Lagos.

One rainy afternoon, the road is slippery, and you accidentally skid and hit a street light. The front of your car is badly damaged. The headlights are broken, the bumper is crushed, and the bonnet is bent.

If you only have Third-Party insurance, you would have to pay for all those expensive repairs from your own pocket. That could be hundreds of thousands of Naira!

But if you have Comprehensive car insurance, you can breathe a sigh of relief.

After you inform your insurance company and complete the paperwork, they will step in to cover the costs of repairing your car and getting it back on the road. That is the power of comprehensive cover.

The car insurance industry is evolving with telematics-based policies, where premiums are determined by real-time driving data.

So, How Much is Comprehensive Car Insurance in Nigeria?

Unlike the fixed price of Third-Party insurance, the cost of comprehensive cover is different for every car. The price, called the “premium,” is calculated as a percentage of your car’s value.

The simple rule is: Premium = (Car’s Value) x (Insurance Rate %)

The rate insurance companies use is typically between 2.5% and 10%. Most good companies offer rates around 5%.

Let’s use an example:

• Suppose your car is valued at ₦3,000,000.
• Your insurance company gives you a rate of 5%.
• Your annual premium will be: ₦3,000,000 x 5% = ₦150,000 per year.

So, you pay ₦150,000 for the whole year to protect your ₦3 million car against accidents, theft, fire, floods, and more. When you think about it, it is a small price to pay for such huge protection.

Extra Perks of Comprehensive Car Insurance

The best policies often come with awesome extra benefits. Think of them as bonus power-ups! These can include:

• Flood and Storm Damage: Very important in many parts of Nigeria during the rainy season.
• Free Car Tracker: Many insurers, offer a free tracking device for cars above a certain value (e.g., ₦4 million or ₦5 million). This helps you find your car if it is stolen.
• Towing Service: If your car breaks down or has an accident, the insurance can pay for a tow truck to take it to a safe place or a repair workshop.
• Medical Expenses: It can cover a certain amount of your medical bills if you are injured in an accident in your car.

When you get Comprehensive car insurance, you are not just getting basic cover; you are getting a full suite of services designed to help you in almost any bad situation.

Best Car Insurance in Nigeria

With many companies offering car insurance in Nigeria, how do you pick the very best one for you? It is like picking a teammate for an important game.

You don’t just pick the one who looks the fanciest; you pick the one who is reliable, strong, and will have your back when things get tough.

The cheapest insurance is not always the best. A cheap policy is useless if the company disappears or refuses to pay when you need them.

Here are some simple but powerful things to look for to find the best car insurance in Nigeria:

1. Do They Pay Claims? (This is the #1 Question!)The most important quality of an insurance company is its willingness and ability to pay claims quickly and fairly. A company can have a nice office and friendly staff, but if they don’t pay claims, they are not a good choice.
   • How to check: Ask people you trust – your parents, older friends, or your family mechanic. Who do they use? Have they ever made a claim, and how was the experience? You can also look for reviews online. Good companies are proud of paying claims and are often recommended by others.
2. Are They Strong and Stable? You want to choose an insurance company that is financially strong and will be around for a long time. All real insurance companies are regulated by a government body called the National Insurance Commission (NAICOM). Stick to well-known, established companies.
   • Examples of strong companies: Some of the most reputable and well-known insurance providers in Nigeria include Leadway car insurance, AXA Mansard, AIICO Insurance, and Custodian and Allied Insurance. These are big names that have been around for a long time.
3. Is Their Customer Service Good? When you have a problem, you want to be able to talk to someone who is helpful and polite. Is it easy to contact the company? Do they answer the phone? Do they reply to emails? Good customer service shows that a company cares about its customers.
4. Do They Offer Cool Extras? As we mentioned, some companies offer great extra benefits with their comprehensive plans. When comparing two companies, look at these extras. A company that offers a free tracker or flood cover might be a better choice for you.

A great example is a company thinking about its customers They offer a special policy called “Third-Party Auto Base.”

It is a clever mix between basic Third-Party and Full Comprehensive.

For a price that is a little more than the basic ₦15,000 Third-Party, it also gives you some cover (up to a certain limit, like ₦500,000) for your own car’s accidental damage.

This is a fantastic option for someone who wants more than the basic cover without paying the full price for comprehensive insurance.

To choose the best car insurance in Nigeria, get price quotes from two or three well-known companies. Compare their prices, their benefits, and their reputation.

Then, you can confidently choose the one that offers you the best value.

Check Car Insurance in Nigeria

Imagine you pay for car insurance, and the seller gives you a paper certificate. How do you know for sure that it is real and not just a fake piece of paper?

This is a very important question because, sadly, some dishonest people sell fake insurance certificates. A fake certificate means you have no insurance at all!

Luckily, there is a very simple and official way to check car insurance in Nigeria. It’s like having a secret code that reveals the truth about any insurance policy.

This service is provided by the Nigerian Insurers Industry Database (NIID). The NIID is a central database that holds records of all genuine car insurance policies in Nigeria. If a policy is not on the NIID, it is not real.

Here’s how you can do your check. It’s super easy!

Method 1: The USSD Secret Code

This method is the fastest and works on any phone, even if you don’t have internet.

1. Open your phone’s dialer, just like you are about to make a call.
2. Dial this special code: *565*11#
3. Press the send or call button.
4. A menu will pop up on your screen. It will ask you to enter your car’s plate number (registration number).
5. Type in your plate number and press send.
6. In just a few seconds, you will get a message back. It will tell you if your car has an active insurance policy, the name of the insurance company, and when the policy expires. It’s that simple!

Method 2: The NIID Website

If you have internet access on your phone or computer, you can also use the official website.

1. Open your web browser and go to the official NIID website: www.askniid.org
2. On the homepage, you will see a simple box to check your policy.
3. You can check using your Car Registration Number (plate number) or your Insurance Policy Number.
4. Type in the detail and click the “Check” button.
5. The website will instantly show you the details of your policy if it is genuine.

What should you do?

When you buy or renew your car insurance Nigeria policy, wait about 24 hours (to give the company time to upload your details) and then use one of these methods to check.

This simple check gives you 100% confidence that you are driving with a real, valid insurance policy. It is your power to protect yourself from fake insurance sellers.

What to Do If Something Happens

Okay, so you have your great Comprehensive car insurance policy, and you feel confident. But what do you do if you actually have an accident? Knowing the steps beforehand can make a stressful situation much easier to handle.

Here’s a simple, step-by-step guide on what to do:

1. Stay Safe and Calm: The very first thing is to make sure you and everyone else involved is safe. If anyone is hurt, call for help immediately. If you can, move your car to the side of the road to avoid causing more traffic. Take a deep breath and try to stay calm.
2. Get Information (Like a Detective): Do not argue or blame anyone at the scene. Just collect information. You will need:
   • The name and phone number of the other driver(s).
   • Their car’s make, model, and plate number.
   • Their insurance company name (if they have it).
   • Take pictures! Use your phone to take photos of the damage to all the cars and the general scene of the accident.
3. Call Your Insurance Company: Call your insurer as soon as you can. They have teams that are trained to handle these situations. They will tell you exactly what to do next and will start the claims process. Most of the best car insurance in Nigeria providers have 24/7 helplines.
4. Fill Out the Paperwork: Your insurer will ask you to fill out a claim form. You will need to describe what happened. You will also need to provide the information and photos you collected at the scene. For serious accidents, a police report might also be needed.
5. Get Your Car Fixed: Your insurance company will guide you on where to get an estimate for the repairs. They will assess the damage and then approve the repairs. With a good company, this process is usually smooth. They will either pay the repair workshop directly or pay you back for the costs.

Making a claim is a straightforward process when you have a good insurance partner. The key is to stay calm, gather information, and contact them quickly.

Car insurance can seem complex, but understanding the basics is crucial for every car owner.

Here’s a comprehensive FAQ, with a focus on general principles and specific notes relevant to Nigeria (where applicable), as you are in Lagos.

General Car Insurance FAQs

1. What is car insurance?

Car insurance is a contract between you and an insurance company where you pay a regular amount (premium), and in return, the company promises to cover specific financial losses that may arise from accidents, theft, or other specified damages to your vehicle or a third party’s property/person.

2. Why do I need car insurance?

• Legal Requirement: In most places, including Nigeria, at least basic Third-Party Liability insurance is mandatory by law.
• Financial Protection: Accidents can be incredibly expensive. Insurance protects you from huge out-of-pocket expenses for repairs, medical bills, legal fees, or damages to other people’s property.
• Peace of Mind: Knowing you’re covered provides a sense of security while driving.

3. What are the main types of car insurance coverage?

The types of coverage vary, but generally fall into these categories:

• Third-Party Liability (Mandatory in Nigeria): This is the minimum legal requirement. It covers damages or injuries you cause to other people or their property (the “third party”) in an accident. It does NOT cover damage to your own vehicle.
  • In Nigeria: The minimum legal coverage for Third-Party Liability is ₦1,000,000 for property damage and ₦60,000,000 for bodily injury/death. The premium for private vehicles typically starts from ₦15,000 per year.
• Third-Party Fire & Theft: This covers everything Third-Party Liability does, plus it covers damage to your own vehicle due to fire or if it’s stolen.
• Comprehensive Coverage: This is the most extensive type of coverage. It includes Third-Party Liability, plus covers damage to your own vehicle resulting from:
  • Collisions (with another vehicle or object)
  • Fire
  • Theft
  • Vandalism
  • Natural disasters (floods, storms, earthquakes, etc.)
  • Other non-collision incidents (e.g., hitting an animal).

4. What are some common add-ons or additional coverages?

• Personal Accident Cover: Provides financial compensation for accidental death or disability to you or your passengers.
• Medical Payments (MedPay) / Personal Injury Protection (PIP): Covers medical expenses for you and your passengers regardless of who is at fault.
• Uninsured/Underinsured¹ Motorist (UM/UIM): Protects you if you’re involved in an accident with a driver who has no insurance or insufficient insurance.
• Roadside Assistance: Covers services like towing, jump-starts, tire changes, etc., if your car breaks down.
• Rental Reimbursement: Pays for a rental car while your vehicle is being repaired after a covered loss.
• Zero Depreciation (or Depreciation Shield): Ensures you receive the full cost of replaced parts without any depreciation deductions in a claim.
• Excess Buy-Back: Allows you to pay an extra premium to reduce or eliminate the compulsory excess (deductible) you’d pay during a claim.

5. What is a premium?

The premium is the amount of money you pay to the insurance company (usually annually or monthly) to maintain your insurance policy.

6. What is a deductible (or Excess in Nigeria)?

A deductible (known as “Excess” in Nigeria) is the fixed amount you agree to pay out-of-pocket for a covered loss before your insurance coverage kicks in. For example, if you have a ₦50,000 excess and your car sustains ₦500,000 worth of damage, you pay the first ₦50,000, and the insurer pays the remaining ₦450,000.

7. What is a No-Claim Bonus (NCB)?

A No-Claim Bonus (NCB) is a discount on your premium for not making any claims during the preceding policy year(s). The discount usually increases with each consecutive claim-free year, up to a maximum percentage (e.g., 50% after 5 years). This encourages safe driving.

8. What factors affect the cost of car insurance (premium)?

Many factors influence your premium:

• Type of Coverage: Comprehensive is more expensive than Third-Party.
• Vehicle Make, Model, and Value: More expensive, luxury, or high-performance cars generally cost more to insure due to higher repair/replacement costs and theft risk.
• Age and Driving Experience: Younger, less experienced drivers typically pay higher premiums.
• Driving Record: Accidents, traffic violations, and claims history will increase your rates.
• Location: Urban areas with higher traffic density, crime rates, or accident statistics tend to have higher premiums.
• Vehicle Use: Commercial vehicles or those used for ride-sharing typically cost more to insure than private, personal use vehicles.
• Claim History: A history of making claims will likely increase your premium.
• Security Features: Anti-theft devices can sometimes lead to discounts.
• Deductible Amount: Choosing a higher deductible can lower your premium, but you’ll pay more out of pocket if you make a claim.
• Discounts: Insurers often offer discounts for things like bundling policies (car and home), good student discounts, safe driver programs, etc.

9. Is car insurance compulsory in Nigeria?

Yes, Third-Party Motor Insurance is compulsory in Nigeria under Section 68 of the Insurance Act 2003. Driving without it can lead to penalties, including fines and vehicle impoundment.

10. How do I verify if my car insurance is genuine in Nigeria?

You can verify the genuineness of your motor insurance policy using the Nigerian Insurance Industry Database (NIID). You can dial *565*11# on your phone and follow the instructions, or visit the NIID website.

A genuine policy should reflect on the NIID within 24 hours of purchase.

11. What documents do I need to buy car insurance in Nigeria?

Typically, you’ll need:

• Your Driver’s License
• Vehicle Registration Certificate
• Vehicle Particulars (Make, Model, Year, Chassis Number, Engine Number)
• Your Passport Photograph
• Bank account details (for claims)
• Contact information
• For Comprehensive Insurance, a valuation report and proof of ownership might be required.

12. How do I file a car insurance claim in Nigeria?

The general process involves:

• Report the Accident: Immediately report the incident to the police (if applicable) and your insurance company.
• Provide Documentation: Submit details about the accident, including photos, police reports, and contact information for other parties involved.
• Cooperate with Insurer: Work with your insurer’s adjusters and provide any requested documents promptly.
• Assessment: Your vehicle will be assessed for damage by the insurer’s appointed experts.
• Settlement: Once the claim is processed and approved, the compensation will be paid, minus any applicable excess.

13. Can I transfer my car insurance to another car or person in Nigeria?

No, generally, a car insurance policy is tied to the specific vehicle it was purchased for. If you sell your car or buy a new one, you will need to purchase a new policy for the new vehicle.

Similarly, the policy follows the vehicle, not the driver, but the driver must be licensed and authorized to drive the vehicle.

14. What are the consequences of driving without insurance in Nigeria?

Driving without at least valid Third-Party motor insurance in Nigeria is illegal and can lead to:

• Fines (e.g., ₦10,000)
• Imprisonment (e.g., 1 year) or both
• Impoundment of your vehicle
• Having to bear all costs out of pocket if you cause an accident.

Conclusion

Learning about Comprehensive car insurance is a big step towards becoming a smart and responsible car owner in Nigeria.

We have journeyed through everything from the basic types of car insurance in Nigeria to the details of “how much is comprehensive car insurance in Nigeria.”

You now know that Third-Party insurance is the legal minimum at a fixed price of ₦15,000, while comprehensive cover is the ultimate protection for your own car, with its cost based on your car’s value.

You have also learned how to choose the “best car insurance in Nigeria” by looking for companies that pay claims fairly, like the reputable car insurance, and how to use the NIID “secret code” to “check car insurance in Nigeria” and confirm your policy is real.

Having good car insurance Nigeria is like having a superhero shield.

You hope you never have to use it, but you drive with so much more confidence knowing it’s there to protect you from big financial harm if something goes wrong.

It gives you the freedom to enjoy your car and your journeys, whether you are in Lagos or anywhere else in Nigeria.

The rise of electric vehicles (EVs) is influencing insurance trends, with insurers developing specialized policies for EV owners.

Are you ready to give your car the superhero shield it deserves? Protecting your car is protecting your investment and your peace of mind.

Contact 360 AutoSecure today! Our friendly experts will help you understand your options and give you a free, personalized quote. Let’s find the perfect insurance plan for you. Don’t just drive, drive secure!