If you got a ride, you might want to invest in some additional form of protection against mishaps that could occur in the future, hence, you might want to know how to get vehicle insurance in Nigeria. If this is what you’re planning to do soon, then you deserve some accolades, because sadly, we don’t have many car owners in the country with this form of protection, and you don’t want to be in that class.
Join me as I take you through the various aspects of vehicle insurance in Nigeria
Insurance is really big business these days, there are lots of them which do a lot to provide cover to various aspects of human and material things. One of the types of insurance we have is vehicle insurance.
What is Vehicle Insurance?
Vehicle insurance may also be called auto insurance in Nigeria, car insurance, or motor insurance. These names, all make it seem we could insure only one kind of vehicle – cars. This isn’t quite the case.
But vehicle insurance is more encompassing.
Vehicle insurance covers any loss or damage incurred by a road vehicle; from trucks to lorries, SUVs, tricycles, saloon cars, and even motorcycles. It also covers damages or accidents caused due to collision with other vehicles, or internal damage. Other forms of damages caused by natural disasters, weather, or fire are also taken care of.
Furthermore, you might get cover against theft with some providers.
Let’s see what you’ll need to prepare before you can get a good vehicle or auto insurance in Nigeria;
Requirements to Getting Auto or Vehicle Insurance in Nigeria
Here are what you would be needed before applying for vehicle insurance in Nigeria;
1. Driver’s License
Getting a Drivers’ Licence is the first and most important requirement for owning vehicle insurance in Nigeria. This is a license like any other, which shows you’re qualified in all ramifications to drive a vehicle in Nigeria.
For commercial transport owners seeking to purchase this for their vehicles, you may not be required to provide a license outrightly, but your drivers should own one – a valid one.
2. Vehicle Particulars
Certain particulars about your vehicle will have to be verified before handing you an auto insurance policy. Having all the required documents ready beforehand is a good step to take.
This may also include something like the engine, VIN, and chassis number.
These are the two basic requirements needed for getting vehicle insurance in Nigeria. You may be required to provide additional documents after evaluating your application, but this rarely occurs.
Now, let’s talk about getting our vehicles insured;
How to Get Auto or Vehicle Insurance in Nigeria
1. Know What You Need
This first part could be tricky, which is why I’ll be helping out with it. We have a couple of auto insurance plans which I’ll be telling you about in a moment. This is the first step towards getting a good cover for your vehicle.
At the end of this post, you should have made up your mind on which of the plans to purchase. Truth is, not all plans are applicable to all vehicles. The current condition of your vehicle would determine what plan you should settle for.
The current value of the car will also be a determining factor in choosing any of the available plans.
2. Choosing an Insurer
This second part has to do with a lot of personal research on some of the insurance firms in Nigeria that could give you good value for your money. Sure there are quite a lot of them, offering various insurance packages to Nigerians but, some may be top-notch in certain types, and in other types, they could perform below par.
This doesn’t mean you should start purchasing several plans from these firms, there are smarter ways to get this done. One good way is by exploring the power of the internet as some of these firms do give information on what you should pay and what you would get from purchasing a plan.
To help you narrow down the search, here are some of the best options worth looking into; AXA Mansard, AIICO Insurance, Allianz Nigeria Insurance, FBN General Insurance, and Custodian Insurance.
3. Get the Prerequisites Ready
Certain requirements will need to be met before handing you a vehicle insurance certificate, and you need to get them ready beforehand, you don’t want to get worked up when the time comes.
The requirements are quite easy to meet as you may already have some of them if you’re a qualified driver. You may be asked for other non-driving-related documents. The two basic prerequisites are mentioned above.
Now, let’s see the types of vehicle insurance available in Nigeria.
Types of Vehicle Insurance in Nigeria
1. Third-Party Vehicle Insurance
This is the basic form of vehicle insurance in Nigeria and actually, the most common. It covers all damages or injuries that pertains to a third-party. Because of this reason, it has been made mandatory by the Nigerian government that every road driver should have one.
Despite the compulsory nature, many drivers still ply the roads in the country without it. The fact that we don’t have agencies checking this, or better still, incompetency on the part of these firms, has allowed this to go unchecked.
But it’s quite important to have one, as it could come in handy in case of any emergency.
Third-Party Vehicle insurance in Nigeria could come in two variants, which are:
- The Limited offers up to one million nairas in cash for damages on the vehicle of the third-party. Or;
- The Unlimited, which takes care of the death or bodily injury on the third-party. Having these should keep you rest assured while driving.
The other type of auto insurance in Nigeria is;
2. Comprehensive Vehicle Insurance
This is otherwise known as the complete auto insurance as it covers everything defined in vehicle insurance, even those covered by third-party vehicle insurance. All losses, damages, or injuries incurred by the policyholder or third-party are covered here.
In any event of a medical emergency arising from vehicular use, you are eligible for medical care. You also get coverage in any event of natural disasters, civil unrest, riots, and strikes.
Additionally, in the case of a breakdown of your vehicle, it will be towed and the fees are taken care of.
3. Third-Party Fire and Theft Insurance
Another kind of insurance which by the way, is slowly fading away is the Third Party Fire and Theft plan. This plan in essence does the work of the Third Party plan, with the addition of fire and theft.
Most insurance companies choose not to offer this to their customers as everything is already covered by the comprehensive plan. But if you need more choices, this could come in handy and less expensive as the comprehensive plan.
With all these, you can see you stand to benefit a lot by owning an auto insurance certificate which isn’t that expensive.
Pricing: The Cost of Vehicle Insurance in Nigeria
People ask on Google that, Is getting vehicle insurance in Nigeria expensive? The answer is NO! Getting vehicle insurance in Nigeria isn’t expensive, but it still baffles me how the majority of vehicle owners neglect this important aspect.
A report released by has it that about 9.5 million cars in Nigeria are uninsured!
But the fact is, getting a good auto insurance plan wouldn’t leave a hole in your pocket, and it’s quite easy to get. The cost of getting vehicle insurance in Nigeria starts from N5,000 and could go up to N10,000 depending on what plan you get.
This price range is constant across the board, with a few modifications. You could get to pay higher if you choose to enjoy additional features.
But, do you think getting vehicle insurance is a waste, just like the 9.5 million car owners who haven’t insured their cars in Nigeria? Well, let’s talk about why you need it!
Benefits of Vehicle Insurance in Nigeria
There are lots of good reasons why you need auto insurance, but here are some of the compelling ones;
1. Financial Benefits
The first and the most important reason why you should get auto insurance for your vehicle is the financial benefits you stand to gain. Whichever plan you choose, there are good financial benefits attached to any of the uncertainties that may arise.
This would at the same time, save you some good amount of money instead of unnecessary spending
2. Medical Benefits
We tend to find ourselves in a country where some health centers may require some form of advance payment before attending to a patient.
You or a third-party shouldn’t be one of those patients who lost their lives because of this reason. This is why vehicle insurance is important because it caters to emergency medical expenses in case of any health condition caused by the usage of vehicles.
Check Here: How to Get Health Insurance in the Country
Remember, your health is your most important asset, and you should always work towards safeguarding it.
3. Legal Benefits
This often happens when damages are incurred by a third-party. Most times, they may sue you for these damages or even loss of life, but these accidents are inevitable, and you don’t want to fall on the wrong side of the law.
This is another good benefit that may save you the stress and money required to go about looking for a good lawyer to defend yourself. But certainly, this doesn’t mean you should be reckless in your driving because you may or may not win the case in the end.
4. Death Benefits
It’s quite a painful experience – the loss of life. This is one of the quirks that come with being a driver; whether it’s a motorcycle, tricycle, a car, or even trucks. The number of road accidents leading to death isn’t a good reflection of the efforts and sensitization put by the road authorities to curb such unfortunate events.
This doesn’t take the place of a life insurance plan, but it surely does complement it in scenarios like this.
So, here are some of the things you need to know about vehicle insurance in Nigeria. Do you own one? If not, what are you waiting for?!
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