Last updated: October 2026
Quick answer: Third-party car insurance in Nigeria costs ₦15,000 per year for a private car (saloon cars, SUVs and private buses). It pays up to ₦3,000,000 for damage your vehicle causes to another person’s car or property, and covers death or bodily injury to other people. This rate was set by the National Insurance Commission (NAICOM) and has applied since 1 January 2023.
Below is the full price list by vehicle type, what the policy does and does not cover, what the new 2025 law says, and how to be sure you are not buying a fake certificate.
NAICOM raised the third-party premium for private cars from ₦5,000 to ₦15,000 in its circular NAICOM/DPR/CIR/46/2022, effective 1 January 2023, the first increase since 2004. The table below shows current annual rates as published by Leadway Assurance, one of Nigeria’s largest motor insurers, in line with the NAICOM schedule:
| Vehicle type | Annual premium | Third-party property damage limit |
|---|---|---|
| Private vehicles (cars, SUVs, private buses) | ₦15,000 | ₦3,000,000 |
| Own goods vehicles (work and business vehicles) | ₦20,000 | ₦5,000,000 |
| Staff bus | ₦20,000 | ₦3,000,000 |
| Special types (e.g. ambulance) | ₦20,000 | ₦3,000,000 |
| Trucks / general cartage | ₦100,000 | ₦5,000,000 |
| Tricycle (keke) | ₦5,000 | ₦2,000,000 |
| Motorcycle (okada) | ₦3,000 | ₦1,000,000 |
Source: Leadway Assurance motor plan comparison (checked October 2026). AXA Mansard lists the same core rates for its AutoGo third-party plan: ₦15,000 for private motor, ₦20,000 for buses and ₦100,000 for trucks. Commercial vehicles carrying fare-paying passengers are priced differently, so ask your insurer for a quote.
The premium is the same whether you drive a 2005 Toyota Corolla or a 2024 Lexus LX. Third-party insurance protects other people, so the value of your own car does not change the price.
Third-party motor insurance pays for the harm your vehicle causes to other people (the “third party”):
If you want protection for your own car, look at an enhanced third-party plan (from about ₦30,000) or full comprehensive insurance.
Yes. Third-party motor insurance is the minimum cover required by law for every vehicle on a Nigerian public road. In August 2025, the Nigerian Insurance Industry Reform Act 2025 (NIIRA 2025) replaced the old Motor Vehicles (Third Party Insurance) Act and restated the requirement in Section 77, with tougher rules:
| Rule | Old law | NIIRA 2025 |
|---|---|---|
| Who must insure | Mainly the vehicle owner | Anyone in control of or responsible for the vehicle |
| Fine for first offence | ₦100 (or 6 months’ jail) | Up to ₦250,000 or 6 months’ jail, or both |
| Fine for repeat offence | ₦200 (or 1 year’s jail) | Up to ₦500,000 or up to 12 months’ jail, or both |
| Who can demand your certificate | Police officers | Law enforcement officers generally |
| Form of certificate | Physical copy | Print or electronic copy accepted |
Summary based on legal analysis of NIIRA 2025 published by Babalakin & Co. (May 2026).
The Nigeria Police Force, backed by NAICOM, also began nationwide enforcement of third-party insurance on 1 February 2025.
You may see roadside agents, licensing offices or websites offering third-party insurance for ₦5,000 to ₦10,000. Be careful:
Whatever you paid, always verify your policy on NIID (askniid.org or dial *565*11#). If it is not on the database, it is not valid.
This is the most under-used right Nigerian drivers have. If another driver damages your car, their third-party insurance should pay for your repairs, up to ₦3 million.
A 2026 industry report presented to insurers and regulators, and reported by BusinessDay, found that:
To claim:
Third-party insurance keeps you legal and protects other people from your mistakes, but it pays nothing for your own car. Here is a simple way to decide:
| Your situation | Recommended cover |
|---|---|
| Old car, low value, you could replace it from savings | Third-party (₦15,000) |
| Mid-value car, tight budget, want some own-car protection | Enhanced third-party (e.g. Leadway Autobase from ₦30,000) |
| Valuable car, financed car, or a car you rely on daily | Comprehensive (at least 5% of car value) |
For example, a 2014 Lexus RX 350 listed at ₦29.12 million would cost ₦15,000 a year on third-party cover, but if it were written off you would recover nothing. Comprehensive cover at 5% (₦1,456,000 a year) would protect the full value. See our full car insurance in Nigeria guide for more worked examples.
₦15,000 per year for a private car, including SUVs and private buses.
About ₦3,000 per year for a motorcycle and ₦5,000 for a tricycle, according to Leadway’s published rates.
Up to ₦3,000,000 for third-party property damage on a private car policy. Some goods-vehicle and truck policies carry ₦5,000,000.
For private cars, yes: licensed insurers charge ₦15,000. Insurers compete instead on service and on optional upgrades.
Leadway says its third-party premium can be paid quarterly, bi-annually or annually (terms apply). Ask your insurer.
Under NIIRA 2025, up to ₦250,000 or 6 months’ imprisonment (or both) for a first conviction, and up to ₦500,000 or 12 months for subsequent convictions.
Your own third-party policy does not. The at-fault driver’s third-party policy should pay for your repairs, up to ₦3 million.
Sources: NAICOM circular NAICOM/DPR/CIR/46/2022; Leadway Assurance third-party product page and motor plan comparison; AXA Mansard motor plans (checked October 2026); Nigerian Insurance Industry Reform Act 2025 (analysis by Babalakin & Co., via Mondaq); BusinessDay reporting. Information only, not legal or insurance advice; confirm current terms with your insurer.
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