Do You Need A Vehicle Insurance In Nigeria?

Vehicle Insurance also known as auto insurance is the cover against full or partial damage to one’s car. Vehicle insurance in Nigeria is very important due to the fact that there are many rough drivers around the country that can cause unforeseen or unplanned for accidents.


Importance Of Motor Vehicle Insurance In Nigeria

In order to be able to pay for the unforeseen expenses, vehicle insurance coverage can assist tremendously. The benefits of motor insurance are many. For instance, in case of injuries or death to your car or a third party, insurance will help you to cover it.

You can get covers against natural disasters like earthquakes, typhoon, hurricane or man-made disasters such as riot, theft, terrorist attacks. All these depend on the type of vehicle insurance cover you choose.

Motor Vehicle Insurance Act In Nigeria

The motor vehicle insurance act states that all automobiles plying the roads must have an auto vehicle as stated in government laws (Motor Vehicle Insurance Act of 1945). This begs to answer the following question; Is vehicle insurance compulsory in Nigeria?

The answer to this is yes, vehicle insurance is compulsory in Nigeria. It is a must that your vehicles have a motor insurance policy in order to abide with Motor Vehicle Insurance Act.

However, this isn’t the case in Nigeria because there are many people that have cars but didn’t get insurance covers for them either because they think it is not important or they don’t even know what insurance is or needed for.

According to the National Intelligence Agency (NIA), 85% of the vehicle owners in Nigeria do not have motor insurance. This has to be changed and corrected. Let’s now look into the types of vehicle insurance in Nigeria you can purchase.

Types Of Motor Insurance In Nigeria

There are different types of motor insurance in Nigeria and each insurance cover has a limit to what it covers and what it does not cover. The common ones include Comprehensive motor insurance liability; ECOWAS Brown card; Third Party Insurance; Third Party, Accidental Damage and Theft; Third Party Fire and Theft.

From this list, it can be seen that there are many similar covers mentioned. This is as a result of different Insurance companies having unique names for their covers and then stating what is covered. Notwithstanding, it is safe to say many if not all of them deal in Third party Insurance, Accident, Fire Damage and Comprehensive insurance covers. Also, there is a difference between insurance cover purchase for a private vehicle and that of the commercial vehicle.

Car Insurance Rates In Nigeria

The car insurance rates of different insurance companies differ and are based on many factors so there is no one size fits all. You have to find out the rates according to the type of car you want to ensure and the kind of cover you intend to get. To assist in finding the best rates, best car insurance in Nigeria for your and the car insurance company, check out Compareinsurance.

How To Verify Your Motor Vehicle Insurance In Nigeria

If you are wondering how to check your vehicle insurance in Nigeria, there is currently one very easy way to get this done. For those that have already purchased a cover, you can do this by dialling *565*11# on any phone you have and then follow the instructions provided by the prompt.

How To Buy Motor Vehicle Insurance In Nigeria

The first thing to know is that there is a difference between purchasing insurance cover for commercial vehicle and buying for a private vehicle. If you have decided which one you want to buy, then you can move on to the next step of buying motor vehicle insurance cover from reputable Insurance companies or brokers.

If you’re looking to buy vehicle insurance in Nigeria, there are many insurance companies selling this cover at different price range. The list of these companies includes Axa Mansard, Leadway, AIICO, Leadfort, FBN General Insurance and Niger Insurance among others.

Also, the majority of these companies have their websites through which you can find out more about their insurance covers and other information you might like to find out.

For third party cover of commercial vehicles, you can get insurance covers for as low as ₦10000. For the cost of comprehensive car insurance in Nigeria, you might need to provide more information about the kind of vehicle you want to insure before you can get a quote of the amount.

To find out details about insurance quotes of the different companies, here are links to their websites in no particular order.

Vehicle Insurance Companies in Nigeria

  1. Axa Mansard Autoflex Motor Insurance

  2. Mutual Benefit Auto Insurance

  3. Auto Plan For Leadway

  4. AIICO Auto Insurance

  5. Leadfort Motor Insurance

  6. FBN Auto Insurance

  7. Leadway Insurance

  8. Niger Insurance

We hope that with this post, we have been able to let you understand that you do need the motor vehicle insurance in case of unforeseen accident, fire or theft. Additionally, we hope we have been able to help you identify the information on where to make the purchase for insurance cover for your cars.

Finally, you now know the auto insurance companies in Nigeria you can use to get your needed motor insurance.

Over to you, which of these insurance companies have you used for auto vehicle insurance, how was their service and which ones will you recommend as the top 3 to select from? Leave your comments below.

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