Third-party vs comprehensive insurance, Nigeria

Short answerChecked 31 October 2026

Third-party motor insurance is the legal minimum in Nigeria: it pays for injury to other people and damage to their property, up to a property damage limit of ₦3 million for a private car, for a premium NAICOM fixes at ₦15,000 a year. Comprehensive insurance adds damage to and theft of your own vehicle; NAICOM forbids a comprehensive premium below 5% of the sum insured after discounts. Both now carry an ECOWAS Brown Card at no extra charge.

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Your situation is different? Ask.

Answers come from the law, the regulator and the insurers' own documents, with the source under each answer. General information, not advice.

What excess will I pay on a claim?Am I covered if I use the car for business?What should I check before I renew?

Side by side

	Third-party	Comprehensive
Required by law	Yes	No (lenders and employers may ask for it)
Other people's injuries and property	Yes; property damage up to ₦3 million for a private car	Yes
Your own car: accident, fire, theft	No	Yes, within the policy wording
Price	Fixed by NAICOM: ₦15,000 for a private car	At least 5% of the sum insured, after all rebates
ECOWAS Brown Card	Included	Included

Sources: NAICOM motor rates and ECOWAS Brown Card directive.

How to choose

Price the gap: on a car insured for ₦8 million, comprehensive costs at least ₦400,000 against ₦15,000 for third-party. Use the calculator.
Read the excess, the exclusions and the repair arrangements: NAICOM requires insurers to disclose the scope of cover and policy conditions and to explain them (NAICOM, 6 March 2025).
Whatever you buy, verify the certificate on NIID and keep it in the car.

Already insured?

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Next step

1. Find the cover that fits

Frequently asked questions

What does third-party insurance cover in Nigeria?

Injury to other people and damage to their property caused by your vehicle; for a private car the property damage limit is ₦3 million under NAICOM's rates. It does not pay for your own car.

Is comprehensive insurance worth it in Nigeria?

It depends on the value of your car and whether you could pay for its repair or replacement yourself. Comprehensive costs at least 5% of the car's value a year; compare that with what you would lose.