Securing the right Motor Insurance is one of the most important responsibilities for every vehicle owner in Nigeria. It is a fundamental tool for financial safety on our busy roads.

Many people view it merely as a legal paper needed to avoid trouble with the police. However, its true value extends far beyond that.

Genuine Motor Insurance is your shield against unexpected financial shocks that can arise from road accidents.

This article serves as your complete guide to understanding motor insurance in Nigeria. We will break down everything in simple, clear terms.

You will learn about the different types of policies available to you. Furthermore, we will show you how to check if your insurance is genuine.

We will also discuss the costs involved and the immense benefits of being properly covered.

Ultimately, choosing the right Motor Insurance is about protecting your peace of mind. It ensures that in the event of an unfortunate incident, you are not left to bear the financial burden alone.

Let’s navigate the world of motor insurance together, so you can drive with confidence.

Why Motor Insurance is Non-Negotiable in Nigeria

In Nigeria, having Motor Insurance is not a choice; it is a legal command. The law makes it compulsory for every vehicle on public roads to be insured.

This rule is rooted in the Motor Vehicles (Third Party Insurance) Act of 1945. The primary goal of this law is to ensure that victims of road accidents receive financial compensation for injuries or damages they suffer.

Recently, the enforcement of this law has become much stricter. As of February 1, 2025, the Nigeria Police Force began a nationwide effort to ensure all drivers have at least the minimum required Motor Insurance.

This means that the chances of being stopped and asked for your insurance certificate are higher than ever.

The penalties for driving without valid Motor Insurance can be severe. You could face hefty fines, potentially up to ₦250,000.

In some cases, your vehicle may be impounded by the authorities until you can provide proof of valid insurance. Repeated offenses could even lead to more serious legal action.

Beyond the legal pressure, having Motor Insurance is a matter of financial wisdom. Imagine you are involved in an accident that results in damage to another person’s car.

The repair costs could run into hundreds of thousands, or even millions, of Naira. Without insurance, you would have to pay this entire amount from your own pocket.

A valid Motor Insurance policy transfers this huge financial risk from you to your insurance company. This is why a genuine policy is one of the smartest investments a vehicle owner can make.

The Main Types of Motor Insurance in Nigeria

When you decide to buy motor insurance in Nigeria, you will find that there are mainly three options to choose from. Each policy offers a different level of protection, designed to meet different needs and budgets.

Understanding these 3 types of motor insurance is the first step to making an informed decision.

1. Third-Party Only Insurance: This is the most basic type of Motor Insurance you can buy. It is the minimum level of cover required by Nigerian law. The term “third party” refers to anyone else involved in an accident that you cause. It does not refer to you (the first party) or your insurance company (the second party).

• What it Covers: This policy covers your legal liability for death, bodily injury, or damage to the property of a third party. For example, if you accidentally hit another car, this insurance will pay for the repairs to that other car. If a person is injured, it will cover their medical expenses. The standard cover for third-party property damage is typically up to a limit of ₦3,000,000.
• What it Does NOT Cover: This is very important to remember. This policy does not cover any damage to your own vehicle. It does not cover you if your car is stolen. It does not cover you if your car is damaged by fire. It only protects you against claims from other people.
• Cost: The price for Third-Party Only Motor Insurance is regulated by the National Insurance Commission (NAICOM). As of 2025, the standard cost for private vehicles is a fixed premium of ₦15,000 per year.
• Who it’s for: This policy is suitable for individuals on a very tight budget whose main goal is to meet the minimum legal requirement to drive on the road.

2. Third-Party, Fire, and Theft Insurance: This is the mid-level Motor Insurance policy. It offers a significant step up in protection compared to the basic third-party cover. It provides a good balance between cost and coverage.

• What it Covers: This policy includes everything covered by the Third-Party Only policy. In addition, it protects you against two major risks to your own vehicle: fire and theft. If your car is damaged in a fire or if it is stolen and not recovered, this policy will compensate you for the loss.
• What it Does NOT Cover: The main exclusion in this policy is accidental damage to your own car from a collision. For instance, if you accidentally hit a wall, the cost of repairing your car will not be covered.
• Who it’s for: This is a great option for car owners who want more peace of mind than the basic policy offers but may not have the budget for a fully comprehensive plan. It protects your car from total loss due to fire or theft.

3. Comprehensive Motor Insurance: This is the highest level of Motor Insurance cover you can get. As the name suggests, it is the most complete and is highly recommended for all vehicle owners who want to fully protect their investment.

• What it Covers: Comprehensive Motor Insurance includes all the benefits of the Third-Party, Fire, and Theft policy. Crucially, it also covers accidental damage to your own vehicle, often referred to as “own damage.” This means that if you are in an accident, regardless of who is at fault, your insurance will pay for the repairs to your car.
• Additional Benefits: This type of Motor Insurance often comes with a range of extra benefits. These can include coverage for medical expenses for you and your passengers up to a certain limit, coverage for personal effects lost in an accident, protection against natural disasters like floods, and coverage for damages from riots or civil commotion. It also covers the cost of towing your vehicle after an accident.
• Who it’s for: This policy is for anyone who wants complete protection and peace of mind. If your vehicle is a significant asset, Comprehensive Motor Insurance is the best way to safeguard its value against almost all road risks.

How Much is Comprehensive Car Insurance in Nigeria

One of the most common questions vehicle owners ask is, “How much is comprehensive car insurance in Nigeria?” Unlike the fixed price of third-party insurance, the cost of Comprehensive Motor Insurance varies.

The cost is not a flat rate. Instead, it is calculated as a percentage of the total value of your car. This value is known as the “insured value” or “sum insured.”

You and your insurance company will agree on the current market value of your vehicle before the policy begins.

Typically, the annual premium for Comprehensive Motor Insurance in Nigeria ranges from 3% to 7% of your car’s value.

Let’s use a clear example.

If your car is valued at ₦5,000,000, your annual premium would likely fall between:

• 3% of ₦5,000,000 = ₦150,000
• 7% of ₦5,000,000 = ₦350,000

The exact percentage you pay depends on several factors that insurance companies use to assess the risk:

• Value and Model of the Car: More expensive cars cost more to repair or replace, so their insurance premiums are higher.
• Age of the Car: Newer cars often have higher premiums.
• Driver’s Age and Experience: Younger, less experienced drivers may face higher premiums.
• Claims History: A driver with a history of making many claims will likely pay more.
• Use of the Vehicle: A car used for commercial purposes may have a higher premium than one used only for private social trips.
• Location: Vehicles used in busy urban areas with higher rates of accidents or theft may attract higher premiums.

This personalized approach ensures that your premium accurately reflects the risk associated with your specific vehicle and circumstances. It is a fair system that defines the pricing of this type of motor insurance.

Buying Motor Insurance Online

In today’s fast-paced world, convenience is key. Thankfully, the process of buying Motor Insurance has moved into the digital age.

You no longer need to spend hours visiting an insurance office. You can now easily purchase your motor insurance online.

This modern approach offers several benefits. It is fast, easy, and allows you to interact directly with the insurance provider from the comfort of your home or office.

One of the biggest advantages is receiving your insurance certificate instantly via email. This means you can get covered and be on the road legally in just a few minutes.

The process to buy motor insurance online is very simple:

1. Gather Your Information: Before you start, have your personal details (name, address, phone number) and your vehicle’s details ready. This includes the car’s make, model, year of manufacture, registration number, and chassis number.
2. Visit the Insurer’s Website: Go to the official website of a reputable insurance company, like 360 AutoSecure.
3. Choose Your Policy: Select the type of Motor Insurance you want (e.g., Comprehensive or Third-Party). You will then be asked to enter your vehicle’s details to get a personalized quote.
4. Complete the Form: Fill out the online application form with all the required information.
5. Make Payment: Pay the premium securely online using a debit card or bank transfer.
6. Receive Your Certificate: Once your payment is successful, your insurance certificate and policy documents will be sent to your email immediately.

It is very important to only use the official websites of licensed and well-known insurance companies. This will protect you from falling victim to fraudulent websites selling fake insurance policies.

The Motor Insurance Check

Buying a Motor Insurance policy is the first step. The second, equally important step is to verify that it is genuine. Unfortunately, fake insurance certificates are a problem in Nigeria.

A fake policy is worthless. It will not protect you in an accident and will get you in trouble with the law.

To solve this problem, the Nigerian insurance industry created the Nigerian Insurance Industry Database (NIID). This is a central database that holds records of every genuine Motor Insurance policy issued in the country.

Performing a motor insurance check using the NIID platform is the only way to be 100% certain that your policy is valid and has been uploaded to the national database.

There are two very easy ways to perform a motor insurance check:

1. Online Portal: The most common method is to use the NIID web portal.
   • Simply visit the official website: askniid.org
   • Click on the button that says “Check Policy.”
   • You can verify your policy by entering either your vehicle’s registration number or your insurance policy number.
   • Click “Search,” and the system will instantly show you the status of your insurance.
2. USSD Code: For ultimate convenience, you can check your policy from any mobile phone, even without an internet connection.
   • Simply dial the USSD code: 56511#
   • Follow the simple on-screen prompts. You will be asked to enter your vehicle registration number.
   • The system will send you a message confirming the status of your Motor Insurance.

Law enforcement agencies, like the Federal Road Safety Corps (FRSC), use the NIID platform to verify the insurance status of vehicles on the road.

If your policy is not on the database, it will be considered invalid. Always perform this simple motor insurance check immediately after purchasing your policy.

Making a Claim: What to Do After an Accident

The real test of your Motor Insurance policy is when you need to make a claim. Knowing the correct steps to take after an accident can make the process smooth and stress-free.

Here is a professional guide on what to do:

• Step 1: Prioritize Safety. Your immediate priority is the safety and well-being of everyone involved. Check for injuries and call for medical help if needed. If it is safe to do so, move your vehicle off the road.
• Step 2: Do Not Admit Fault. Even if you think the accident was your fault, do not admit liability at the scene. Let the police and your insurance company investigate and determine fault.
• Step 3: Report the Incident. For any significant accident, it is important to report it to the nearest police station. A police report is often a required document for your insurance claim.
• Step 4: Gather Information. Collect as much information as possible. This includes the names and contact details of the other driver(s), their vehicle registration numbers, and their Motor Insurance details. Take clear pictures of the accident scene and the damage to all vehicles involved.
• Step 5: Notify Your Insurer. Contact your insurance company (e.g., 360 AutoSecure) as soon as possible. Most insurers have a time limit within which you must report an incident.
• Step 6: Complete the Claim Form. Your insurer will provide you with a claim form. Fill it out accurately and attach all the required documents, such as the police report, photos, and an estimate for the repairs.

Following these steps will help ensure that your claim is processed efficiently, allowing you to get the financial support your Motor Insurance policy promises.

Hello! As it is Monday, June 23, 2025, in Onitsha, Anambra, understanding motor insurance is crucial for every driver navigating our busy roads. Here is a detailed set of answers to frequently asked questions about motor insurance in Nigeria.

Motor Insurance in Nigeria: Frequently Asked Questions

1. What are the main types of motor insurance in Nigeria? In Nigeria, there are three primary types of motor insurance policies. Your choice depends on your budget and the level of protection you need for your vehicle.

• Third-Party Only (TPO) Insurance: This is the most basic and the minimum level of insurance required by law. It covers liability for death, bodily injury, or damage to another person’s property caused by your vehicle. It does not cover any damage to your own car.
• Third-Party, Fire & Theft (TPF&T) Insurance: This is the mid-tier option. It includes all the coverage of a Third-Party policy, but adds protection for your own vehicle in two specific situations: if it is damaged by fire or if it is stolen.
• Comprehensive Insurance: This is the highest level of coverage you can get. It includes everything from the TPF&T policy and also covers accidental damage to your own vehicle, whether the accident was your fault or not. It often includes cover for things like flood damage, vandalism, and personal accident benefits for the driver.

2. How much does motor insurance cost in Nigeria?

The cost depends entirely on the type of insurance you choose:

• Third-Party Insurance Cost: The price for this policy is regulated by the National Insurance Commission (NAICOM). As of 2025, the annual premium for private vehicles is ₦15,000.
• Comprehensive Insurance Cost: The price is not fixed. It is calculated as a percentage of your vehicle’s total value (also called the Sum Insured). This percentage typically ranges from 3% to 7% annually.
  • Example: If your car is valued at ₦5,000,000 and the insurer’s rate is 4%, your annual premium would be ₦200,000 (0.04 x 5,000,000).

3. What factors determine my car insurance premium? Several factors are considered by insurance companies when calculating your premium, especially for comprehensive coverage:

• Value and Type of Car: More expensive, luxury, or high-performance cars cost more to insure because they are more expensive to repair or replace.
• Age of the Car: Newer cars often have higher premiums due to their higher value. However, very old cars can sometimes be expensive to insure if their parts are rare.
• Intended Use: A vehicle for personal use will have a lower premium than one used for commercial purposes like a taxi, delivery van, or ride-hailing service, as commercial use implies higher mileage and risk.
• Your Driving History: A driver with a clean record and no history of making claims can often get a “No-Claim Bonus,” which is a discount on their premium at renewal.
• Location: Living in a busy urban area like Onitsha or Lagos, with higher traffic density and theft rates, might lead to a slightly higher premium compared to a quiet, rural town.

4. What is the minimum car insurance required by law in Nigeria? The minimum motor insurance required by Nigerian law (Motor Vehicles Third Party Insurance Act of 1945) is Third-Party Only insurance. It is illegal to drive any vehicle on a public road in Nigeria without at least this basic level of cover.

5. What are the penalties for driving without valid insurance? Driving without at least a valid Third-Party insurance policy is a serious offense in Nigeria. The legal penalties can be severe and may include:

• A fine of up to ₦250,000.
• Imprisonment for up to one year.
• In many cases, both the fine and imprisonment can be applied.
• Your vehicle can also be impounded by law enforcement officials like the Police or FRSC.

6. How can I verify if my car insurance is genuine? To combat the issue of fake insurance certificates, the Nigerian Insurers Association (NIA) created the Nigerian Insurance Industry Database (NIID).

You can verify your policy instantly using two methods:

• Online Portal: Visit the NIID website (askniid.org) and enter your vehicle registration number or your policy number.
• USSD Code: Dial *565*11# on your mobile phone and follow the on-screen prompts.

If your policy details appear, it is genuine. If not, your policy is not on the national database, and you should contact your insurance provider immediately.

7. How do I choose the best insurance company? The “best” company is one that is reliable and meets your needs.

When choosing, consider these points:

• NAICOM License: Ensure the company is licensed and regulated by the National Insurance Commission (NAICOM).
• Financial Strength: Choose a company with a strong financial reputation. This gives you confidence that they can afford to pay claims when they arise.
• Claims Settlement Record: This is the most important factor. Research the company’s reputation for paying claims. A cheap policy is useless if the company makes it difficult to get your money when you need it most.
• Customer Service: Look for a company with responsive and helpful customer service.
• Compare Quotes: Don’t just accept the first offer. Get quotes for the same level of coverage from at least three different reputable insurers to ensure you are getting a fair price.

Conclusion

Navigating the roads in Nigeria comes with its share of uncertainties. However, your financial security should not be one of them. Motor Insurance is a vital tool that serves as both a legal necessity and a financial safety net.

Understanding the types of motor insurance in Nigeria—from the basic Third-Party policy to the all-inclusive Comprehensive Motor Insurance—allows you to choose the cover that best suits your needs and protects your valuable assets.

With the ease of purchasing motor insurance online and the simplicity of verifying your policy with a quick motor insurance check, being a responsible and protected driver has never been easier.

The key is to choose a reliable and professional insurance partner.

Don’t leave your peace of mind to chance. Protect yourself, your vehicle, and other road users today with a genuine Motor Insurance policy from a trusted provider.

Are you ready to drive with confidence?

Visit 360 AutoSecure online now to get a quick and competitive quote for your motor insurance. Our simple digital process makes it easy to get covered in minutes.

If you prefer to speak with an expert, call our friendly advisors today to discuss your needs and find the perfect Motor Insurance cover for you.

Drive smart, drive safe, and drive with the complete protection of 360 AutoSecure.