Last updated: October 2026 · Prices from insurers’ published rates and NAICOM rules
Quick answer: The cheapest legal car insurance in Nigeria is third-party insurance at ₦15,000 a year for a private car, and that price is the same at every licensed insurer. If you also want cover for your own car, the cheapest published option from a major insurer is Leadway’s Third Party Autobase (Bronze) at ₦30,000 a year. Full comprehensive cover can’t legally cost less than 5% of your car’s value.
Below we compare every price level with real numbers, show when a “cheaper” plan actually costs you more, and list the legal ways to reduce your premium.
The honest answer is that no single insurer is cheapest, because the National Insurance Commission (NAICOM) sets the floor prices:
So insurers compete on what you get for the money, and on the in-between plans that sit above third-party but below full comprehensive. That middle ground is where real savings are.
| Plan | Insurer | Yearly price | Covers your own car? |
|---|---|---|---|
| Third Party / AutoGo | Leadway, AXA Mansard, AIICO, Custodian and all licensed insurers | ₦15,000 | No |
| Third Party Autobase, Bronze (private cars) | Leadway | ₦30,000 | Limited: own damage up to ₦1m, fire up to ₦500k |
| AutoFlex (customisable) | AXA Mansard | Quote-based | Only the covers you choose |
| Third Party Autobase Plus, Bronze | Leadway | ₦80,000 | Own damage up to ₦1m; theft and fire up to ₦2m |
| Third Party Autobase Plus, Silver | Leadway | ₦160,000 | Own damage up to ₦2m; theft and fire up to ₦4m |
| Third Party Autobase Plus, Gold | Leadway | ₦240,000 | Own damage up to ₦3m; theft and fire up to ₦6m |
| Third Party Autobase Plus, Platinum | Leadway | ₦400,000 | Own damage up to ₦5m; theft and fire up to ₦10m |
| Comprehensive | All licensed insurers | At least 5% of car value | Yes, up to the full value |
Leadway prices are from its published motor plan comparison; AXA Mansard plans from its motor insurance page (both checked October 2026). Prices can change, so confirm with the insurer before you buy.
Third-party insurance keeps you legal and pays up to ₦3 million for damage you cause to other people’s property, plus injury or death claims from other people. It pays nothing towards your own car. It suits older, low-value cars. Full third-party price list by vehicle type →
For double the third-party price, Leadway’s Autobase Bronze plan for private cars adds limited cover for your own car:
This is good value for a car worth a few million naira where a minor accident is the main worry. It is not a substitute for comprehensive cover on a valuable car, and theft is not listed among its benefits.
Autobase Plus adds theft cover and higher limits, with no excess, free flood, riot and windscreen cover, and ₦50,000 towing. Each tier has a minimum vehicle value (₦2m, ₦4m, ₦6m and ₦10m).
Comprehensive insurance covers your car up to its full insured value against accident, fire and theft. The legal minimum price is 5% of that value per year. Compare the best comprehensive plans →
This is the comparison most guides skip. We matched each Autobase Plus tier with comprehensive cover for a car at that tier’s minimum value:
| Car value | Autobase Plus tier | Autobase Plus price | Comprehensive at 5% | You save | But own damage is capped at |
|---|---|---|---|---|---|
| ₦2,000,000 | Bronze | ₦80,000 | ₦100,000 | ₦20,000 | ₦1,000,000 |
| ₦4,000,000 | Silver | ₦160,000 | ₦200,000 | ₦40,000 | ₦2,000,000 |
| ₦6,000,000 | Gold | ₦240,000 | ₦300,000 | ₦60,000 | ₦3,000,000 |
| ₦10,000,000 | Platinum | ₦400,000 | ₦500,000 | ₦100,000 | ₦5,000,000 |
What this tells you: Autobase Plus is about 20% cheaper than comprehensive at each tier’s minimum car value. However, accident damage to your own car is capped at half that value, while theft and fire are covered up to the full amount. If your car is worth more than the tier minimum, the saving grows, but so does the gap in cover. For a car you rely on every day, comprehensive is usually the safer buy. If theft and fire are your main worries and you can absorb a large repair bill, Autobase Plus is a smart saving.
| Car | Price | Cheapest legal (third-party) | Comprehensive at 5% |
|---|---|---|---|
| 2007 Lexus IS 350 (Tokunbo) | ₦8,840,000 | ₦15,000 | ₦442,000 |
| 2005 Lexus RX 330 (Tokunbo) | ₦14,560,000 | ₦15,000 | ₦728,000 |
| 2014 Lexus RX 350 (Tokunbo) | ₦29,120,000 | ₦15,000 | ₦1,456,000 |
For cars at this price level, the gap between ₦15,000 and full cover is large, but so is the risk: a single write-off of the RX 350 would cost you ₦29 million without comprehensive insurance. More examples are in our complete car insurance in Nigeria guide.
Some websites and roadside agents still advertise third-party cover at ₦5,000 or ₦7,500. ₦5,000 was the price before January 2023; anything well below ₦15,000 for a private car today should make you suspicious. A fake certificate pays nothing if you cause an accident, and under the Nigerian Insurance Industry Reform Act 2025, driving without valid insurance can cost you up to ₦250,000 in fines.
Always verify your policy on NIID at askniid.org or by dialling *565*11#.
Third-party insurance at ₦15,000 per year for a private car. It is the legal minimum and costs the same at every licensed insurer.
No licensed insurer can sell comprehensive cover below 5% of the car’s value after discounts, so prices start at the same level. Compare insurers on benefits instead: excess, flood and riot cover, towing, tracking and claims service.
Not legally. NAICOM’s rules set 5% of the sum insured as the minimum after all rebates or discounts. Offers below that are a red flag.
Among major insurers’ published plans, Leadway’s Third Party Autobase Bronze at ₦30,000 a year is the cheapest that includes limited own-damage cover (up to ₦1 million), for private cars.
Yes. Enhanced third-party plans include full statutory third-party cover plus limited cover for your own car, so they meet the legal requirement.
It depends on your car’s value. For a ₦2–3 million car, a ₦30,000–₦80,000 plan can be excellent value. For a ₦20 million+ car, saving money on cover can expose you to a loss of millions.
Sources: NAICOM circular NAICOM/DPR/CIR/46/2022; Leadway Assurance motor plan comparison; AXA Mansard motor insurance plans (checked October 2026); Nigerian Insurance Industry Reform Act 2025. Prices can change; confirm with the insurer before buying. Information only, not financial advice.
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