Last updated: October 2026
Quick answer: Third-party insurance (₦15,000 a year for a private car) only pays for damage and injury you cause to other people. It is the legal minimum. Comprehensive insurance (at least 5% of your car’s value a year) pays for other people and your own car if it is damaged, stolen or burnt. If losing your car would hurt you financially, comprehensive is better. If your car is cheap and easy to replace, third-party may be enough.
| What’s covered | Third-party | Comprehensive |
|---|---|---|
| Damage you cause to another person’s car or property | Yes, up to ₦3,000,000 | Yes, ₦3,000,000+ (some insurers give ₦5m on high-value cars) |
| Injury or death of other people | Yes | Yes |
| Accident damage to your own car | No | Yes |
| Theft of your car | No | Yes |
| Fire damage to your car | No | Yes |
| Flood and riot damage | No | Often included or available as an add-on |
| Towing, medical expenses, tracking | No | Usually included, with limits |
| Legal requirement | Yes, compulsory | Optional (but banks require it on financed cars) |
| Price for a private car (2026) | ₦15,000 a year | At least 5% of car value a year |
Both prices come from the National Insurance Commission’s (NAICOM) circular NAICOM/DPR/CIR/46/2022, effective 1 January 2023. It fixed the private-car third-party premium at ₦15,000 and said comprehensive premiums cannot be lower than 5% of the sum insured after all discounts.
Third-party motor insurance protects other road users from you. If you hit another car, a fence or a pedestrian, your insurer pays them, up to ₦3 million for property damage on a private car, and for injury or death claims. It is the minimum cover required by law under the Nigerian Insurance Industry Reform Act 2025, and driving without it can attract a fine of up to ₦250,000.
What it does not do is pay a single naira towards your own car. If you crash into a pole, your car is stolen, or a flood ruins your engine, you pay for everything yourself.
👉 Full details: How Much Is Third-Party Car Insurance in Nigeria?
Comprehensive cover includes everything in third-party insurance plus protection for your own vehicle against accident damage, fire and theft. Most comprehensive plans also add towing, medical expenses and other extras. For example, Leadway’s published comprehensive plan lists free excess, free flood and riot cover, and free tracking for cars above ₦4 million sum insured.
👉 Compare insurers: Best Comprehensive Car Insurance in Nigeria
| Car | Price | Third-party | Comprehensive (5%) | What third-party leaves you exposed to |
|---|---|---|---|---|
| 2007 Lexus IS 350 | ₦8,840,000 | ₦15,000 | ₦442,000 | Up to ₦8.84m if written off or stolen |
| 2005 Lexus RX 330 | ₦14,560,000 | ₦15,000 | ₦728,000 | Up to ₦14.56m |
| 2014 Lexus RX 350 | ₦29,120,000 | ₦15,000 | ₦1,456,000 | Up to ₦29.12m |
The question is not which policy is cheaper (third-party always is) but whether you can afford the loss third-party does not cover. On the RX 350, comprehensive costs about ₦1.44m more per year than third-party, but one theft or write-off would cost you twenty times that amount.
| Your situation | Best choice | Why |
|---|---|---|
| Old car worth under about ₦2m that you could replace from savings | Third-party | The 5% premium buys little real protection |
| Car worth ₦2m–₦10m, tight budget | Enhanced third-party (e.g. Leadway Autobase, AXA AutoFlex) | Limited own-car cover for less than full comprehensive |
| Car you rely on daily, or that you couldn’t replace easily | Comprehensive | Protects you from a loss you cannot absorb |
| Car bought with a loan | Comprehensive | Lenders require it for the full loan period |
| You live or park in a flood-prone area | Comprehensive with flood cover | Third-party never pays for flood damage to your car |
| You drive for Uber/Bolt or commercial use | Comprehensive (commercial) | More time on the road means more risk; private policies may not cover commercial use |
Yes. Several insurers now sell enhanced third-party plans that include the legal third-party cover plus limited cover for your own car. Leadway’s Third Party Autobase (Bronze, for private cars) costs ₦30,000 a year with own-damage cover up to ₦1 million, while its Autobase Plus tiers (₦80,000–₦400,000) add theft and fire cover. They cost about 20% less than comprehensive at each tier’s minimum car value, but cap accident damage to your car at roughly half its value. Our cheapest car insurance guide breaks down the numbers.
Comprehensive is better for valuable cars, financed cars and cars you rely on daily, because it also covers your own vehicle. Third-party is enough only for low-value cars you could replace yourself.
Third-party is ₦15,000 a year. Comprehensive is at least 5% of the car’s value, so ₦250,000 for a ₦5m car or ₦1,000,000 for a ₦20m car.
Yes. Every comprehensive policy includes the compulsory third-party cover, so you don’t need to buy both.
Generally yes. Contact your insurer to upgrade; they will usually inspect the car and charge the difference for the remaining period.
No. Theft of your own car is only covered by comprehensive or theft-inclusive plans such as third-party, fire & theft or Leadway Autobase Plus.
For the full picture, read our complete guide to car insurance in Nigeria.
Sources: NAICOM circular NAICOM/DPR/CIR/46/2022; Nigerian Insurance Industry Reform Act 2025; Leadway Assurance motor plan comparison and AXA Mansard motor plans (checked October 2026). Information only, not insurance advice; confirm terms with your insurer.
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