Best Car Insurance in Nigeria (How Much is Comprehensive Car Insurance)

car insurance in nigeria

Last Updated on December 8, 2022

Insurance provides a way to protect you from everyday risks. These risks include accidents, illnesses, death, or damage to property you own. They can create financial losses that you would not be able to cover on your own. One property that is always subject to damage or loss is cars. That is why it is a good idea to have comprehensive car insurance in Nigeria.

If something ever goes wrong with your car, the insurance company will have your back in the form of financial compensation.

Car insurance (also known as vehicle insurance, motor insurance, or auto insurance) is an agreement between a car owner and an insurance company. 

Where the insurance company provide financial protection against unexpected events such as road accident, theft, fire, natural calamities, vandalism and other situations that could also arise from incidents in a vehicle.

In exchange, the car owner pays an amount, usually a monthly fee known as a car insurance premium to the insurance company. 

See: Everything About Health Insurance in Nigeria

What type of Car Insurance Exists in Nigeria?

There are two types of car insurance in Nigeria. They are Third Party Motor Insurance Policies and Comprehensive Car Insurance Policies.

1. Third-Party Motor Insurance policy

Third-Party Motor Insurance is a compulsory insurance policy in Nigeria. it is the legal minimum level of vehicle insurance cover any vehicle owner plying Nigerian roads is required to have. 

The benefits of Third Party car Insurance in Nigeria make it a no-brainer for every Nigerian to possess. Third-Party Motor Insurance policy takes care of the damage caused by the insured (policyholder) to third parties body and third-party vehicle and property.

The limit for third-party car or property damage is usually N1 million. However, This limit can be increased by paying an additional premium. While there is no limit put on bodily injuries and death to third parties.

Third-party motor insurance is very important as far as third-party road users are concerned as well as for the insured (policyholder) as it protects car owners from losses caused by their cars on other people.

Also Read: List of Best HMO in Nigeria

2. Comprehensive Auto Insurance Policy

The comprehensive auto insurance policy covers the damage or loss to an insured car or vehicle. This loss can arise from fire, theft, vandalism, accidental damage or collision. This auto insurance policy also covers bodily damage, death, as well as damage to third-party property by the insured vehicle.

For an extra fee, your comprehensive Auto insurance policy can include additional features such as:

  • provisional car to use for some time in cases of theft or severe damage to the vehicle.
  • excess buyback
  • increase in TPPD
  • medical bills
  • cover for loss of personal items
  • no claims bonuses, that allow the policyholder to get a return on premiums paid after a certain number of years
  • protection against natural events (storms, floods, tempests)
  • protection against strikes, riots and civil commotion
  • vehicle trackers. Usually provided free for cars worth ₦3 million and above.

Therefore comprehensive auto insurance can be viewed as third-party insurance plus personal auto insurance. Even though comprehensive auto insurance isn’t compulsory under Nigerian law, it comes highly recommended for all vehicle owners.

See: Top Insurance Companies in Nigeria

Third-party Auto Insurance vs Comprehensive auto insurance

While third-party car insurance is required under Nigerian law and comprehensive auto insurance isn’t. Comprehensive auto insurance is a more preferable option. Because it has all the features of third-party motor insurance and more.

However, if you’re seeking the least tenable option, then third-party motor insurance is fine.

Where to Get Motor Insurance in Nigeria?

You can get car insurance in Nigeria or motor cover as an option when you’re buying a car from most authorised car dealers in Nigeria. It is important to note that car or auto dealers aren’t insurance companies. Rather, they have a relationship with the insurance companies.

So it is essential to ensure that the insurance company the car dealer is working with is registered and has a good reputation in the auto insurance industry.

You can find out if an insurance company is registered by checking  Naicom’s website. Naicom is the regulator for everything insurance in Nigeria.

See: Is AIICO Insurance Reliable? A Review of AIICO Insurance

Best Comprehensive Car Insurance Companies in Nigeria?

Finding a good car insurance company in Nigeria can be a bit tricky.

So here’s a list of the best comprehensive car insurance companies in Nigeria with a good reputation:

How much is Comprehensive Car Insurance in Nigeria

A comprehensive car insurance policy in Nigeria is anywhere between 3% – 7% of the total value of your vehicle (car) yearly.

What are the Two Types of Vehicle Insurance in Nigeria

The two types of vehicle insurance in Nigeria are Third-party Auto Insurance and Comprehensive auto insurance.

How Do I Insure a car in Nigeria

You can insure a car in Nigeria by getting in touch with insurance companies like AIICO Insurance Plc, AxaMansard Insurance, Cornerstone Insurance,IGI Nigeria, Mutual Benefits Assurance, and Old Mutual Insurance.

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