Car insurance in Nigeria isn’t just a legal requirement—it’s your safety net. Whether you drive a new sedan, commercial vehicle, or SUV, having the right car insurance can protect you financially in case of accidents, theft, or damage. But what exactly does car insurance cover in Nigeria? How much does it cost? And which companies offer the best plans?
This 2025 guide answers all your burning questions.
Types of Car Insurance in Nigeria
There are two main types of car insurance policies you can get in Nigeria:
1. Third-Party Insurance (Compulsory)
This is the minimum legal requirement under Nigerian law.
What it covers:
- Damages to another person’s vehicle or property
- Injury or death caused to others (third parties) in an accident
What it does NOT cover:
- Damage to your own vehicle
- Theft of your vehicle
- Medical bills for you
Price Range: ₦15,000 – ₦25,000/year
2. Comprehensive Insurance
This covers both third-party liabilities and your own vehicle.
What it covers:
- Third-party damage and injury
- Theft or fire damage to your car
- Accidental damage
- Natural disasters (flood, storm, etc.)
- Vandalism
Optional Add-ons:
- Medical expenses
- Towing services
- Personal accident cover
Price Range: Usually 3% – 5% of your car’s value annually
(Example: A ₦5,000,000 car will cost around ₦150,000 – ₦250,000/year to insure comprehensively.)
Top Car Insurance Providers in Nigeria (2025)
|
Provider |
Policy Types Offered |
Known For |
|
AXA Mansard |
Third-party, comprehensive |
Digital services, easy claims |
|
Leadway Assurance |
Third-party, comprehensive |
Quick response, roadside assistance |
|
AIICO Insurance |
Both |
Affordable plans, long-standing |
|
Cornerstone Insurance |
Both |
Add-on flexibility, fast quotes |
|
Mutual Benefits |
Both |
Micro plans, wide network |
|
LASACO Assurance |
Both |
Strong Lagos coverage, education-based incentives |
How to Buy Car Insurance in Nigeria
Buying car insurance is now faster and easier with online options.
1. Online via Insurance Company Websites
Most top insurers let you buy and manage your policy online.
Just visit their site, fill out your details, select your plan, and pay.
2. Insurance Brokers & Agents
They help you compare prices and plans across multiple providers.
3. Aggregator Platforms
Sites like CompareIN, MyCoverGenius, and Curacel offer side-by-side comparisons.
Key Things to Consider Before Buying
- Car Value: Don’t overpay to insure a car worth less than ₦1M with comprehensive.
- Claim Limits: Check how much the insurer pays per incident or per year.
- Exclusions: Read the fine print. Some policies exclude natural disasters or driving outside Nigeria.
- Digital Access: Choose companies with mobile apps or online portals.
What to Do After an Accident
- Stop & Stay Safe: Park and secure the area.
- Notify Police: Especially if there's injury or third-party damage.
- Document Everything: Take photos, record statements if possible.
- Call Your Insurer: Start the claims process immediately.
- Get a Police Report: It's often required for your claim.
Required Documents for Car Insurance
- Vehicle Registration Documents
- Valid Driver’s License
- Proof of Ownership
- Recent Vehicle Photos
- Roadworthiness Certificate (for commercial vehicles)
FAQ About Car Insurance in Nigeria
Q1: Is car insurance mandatory in Nigeria?
A: Yes. At least third-party insurance is legally required to drive on Nigerian roads.
Q2: Can I get insurance for an old car?
A: Yes. While premiums might be slightly higher, you can still get third-party or even comprehensive cover depending on the car’s value.
Q3: Will insurance cover flood damage?
A: Only comprehensive insurance may cover natural disasters like flood, depending on the provider.
Q4: How long does it take to process a claim?
A: It typically takes between 7 to 21 working days, depending on documentation and the insurer.
Q5: Can I transfer my insurance if I sell my car?
A: In most cases, yes—but you'll need to notify the insurer and provide the new owner's details.
Conclusion
Car insurance in Nigeria isn’t just about staying legal—it’s about protecting your life, your finances, and your future. Whether you're driving in Lagos, Port Harcourt, or Abuja, choosing the right plan can make a world of difference in emergencies.
For peace of mind and proper protection, invest in the right coverage and pick a provider with a reputation for reliable claims processing and customer service.
