Photo: Omoeko Media, Wikimedia Commons, CC BY-SA 4.0Car insurance in Nigeria
Compulsory third-party cover, prices and your rights
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What the law requires
NAICOM explains that the Reform Act consolidates the Insurance Act 2003, the Motor Vehicles (Third Party Insurance) Act and other laws into one Act, and that on third-party motor insurance "the third-party property damage limit has been increased", government-owned vehicles must now be insured, damage to road infrastructure is part of the cover and "all passengers in commercial vehicles are now required to be insured" (NAICOM, 14 August 2025).
Enforcement is shared with the Federal Road Safety Corps and the Nigeria Police Force: NAICOM and the FRSC set up a joint committee on 29 October 2025 to enforce compulsory third-party cover, reduce the number of uninsured vehicles and allow real-time verification of insurance status (NAICOM), and NAICOM trained FCT police officers to identify genuine certificates in July 2026 (NAICOM).
What third-party cover costs
| Vehicle (NAICOM class) | Third-party property damage limit | Third-party premium a year |
|---|---|---|
| Private motor | ₦3,000,000 | ₦15,000 |
| Commercial: own goods | ₦5,000,000 | ₦20,000 |
| Commercial: staff bus | ₦3,000,000 | ₦20,000 |
| Commercial: trucks / general cartage | ₦5,000,000 | ₦100,000 |
| Commercial: special types | ₦3,000,000 | ₦20,000 |
| Commercial: tricycle | ₦2,000,000 | ₦5,000 |
| Commercial: motorcycle | ₦1,000,000 | ₦3,000 |
Source: NAICOM circular of 22 December 2022, effective 1 January 2023, reaffirmed in March 2025. The premium includes the ECOWAS Brown Card. Work out your figure with the motor insurance calculator.
Fake certificates: verify before you drive
The Nigerian Insurance Industry Database (NIID), owned by the Nigerian Insurers Association, is "the central database of all compulsory insurances in Nigeria" and is used by law enforcement agencies to validate certificates (askNIID). Its own warning: ignore messages asking you to renew on the NIID platform, and buy or renew "only at licensed insurance companies".
- Open askniid.org and click Check Policy (vehicle policy), or dial *565*11# on any phone and follow the prompts (askNIID).
- Choose single or fleet and enter the details the form asks for, such as the vehicle registration number (check policy).
- Compare the result with your certificate: insurer, vehicle, policy dates. If the policy is not found or the details differ, contact the insurer named on the certificate at once.
Step by step: verify motor insurance on NIID.
When you claim
NAICOM's circular of 6 March 2025 directs every insurer to settle genuine claims "promptly, fairly, and adequately", to "dispense with documents that are not fundamental to the reported loss", and to disclose the scope of cover, terms and conditions of every policy (circular NAICOM/I&R/CIR/60/2025). If the insurer does not pay, see how to complain to NAICOM.
Already insured?
Next step
Frequently asked questions
Is car insurance compulsory in Nigeria?
Yes, third-party motor insurance is compulsory for every vehicle. The Nigerian Insurance Industry Reform Act 2025 re-enacted the rule of the old Motor Vehicles (Third Party Insurance) Act; the FRSC and the police enforce it.
How much is third-party insurance in Nigeria?
₦15,000 a year for a private car, under NAICOM's rates effective 1 January 2023, with property damage cover of up to ₦3 million and the ECOWAS Brown Card included. Commercial vehicles pay ₦3,000 to ₦100,000 by type.
How do I know if my car insurance is genuine?
Check it on askniid.org (Check Policy) or dial *565*11#. The NIID is the central database of compulsory insurances that the police and FRSC use.
Which insurers can sell motor insurance in Nigeria?
Non-life and composite insurers licensed by NAICOM. See the list of insurance companies in Nigeria.
Sources
- NAICOM — The dawn of a new era as President Bola Ahmed Tinubu signs the Nigerian Insurance Industry Reform Act 2025 into law (14 August 2025)
- NAICOM — Circular NAICOM/DPR/CIR/46/2022: new premium rates for motor insurance, effective 1 January 2023 (22 December 2022)
- NAICOM — Circular NAICOM/I&R/CIR/60/2025: mandatory prompt settlement of claims and enforcement of compliance with statutory third-party motor insurance (6 March 2025)
- NAICOM — Directive NAICOM/TD/MCCB/MCP/INS/004: automatic issuance of ECOWAS Brown Cards for all motor insurance policies, section 103 of NIIRA 2025 (28 July 2026)
- NAICOM — NAICOM and FRSC inaugurate joint committee on enforcement of compulsory third-party motor insurance (29 October 2025)
- NAICOM — NAICOM holds one-day training for the Nigeria Police Force on compliance with compulsory insurance policies (8 July 2026)
- Nigerian Insurance Industry Database (NIID) — askNIID verification platform: Nigerian Insurers Association
- askNIID — Check policy: vehicle policy verification