How to Get Third Party Car Insurance in Nigeria (2024)

Owning a car in Nigeria comes with the legal responsibility of having at least third party car insurance. This ensures that in case you are liable for damage or injury caused to a third party in an accident, your insurance company will pay compensation on your behalf.

As of 2024, the law in Nigeria mandates that all car owners must have at least third party insurance before driving on public roads. Getting affordable and adequate third party coverage has therefore become an important consideration for motorists.

This article provides a step-by-step guide on how to get third party car insurance in Nigeria this year.

HOW TO GET THIRD PARTY CAR INSURANCE IN NIGERIA (2024)

The following are step by step instructions on how to get a third party insurance for your motor vehicle in Nigeria.

CHOOSING AN INSURANCE COMPANY

With many insurance companies now offering motor insurance plans, you have to compare options carefully before picking one. Some of the top insurance providers you can consider for third party plans this year include:

• AIICO Insurance
• Cornerstone Insurance
• Leadway Assurance
• SUNU Assurances
• Old Mutual Nigeria

When comparing providers, check policy benefits, exclusions, premium rates and customer service. AIICO, Cornerstone and Leadway currently have some of the most flexible and affordable third party premium rates in the market.

GETTING QUOTES

Once you have a few potential insurers in mind, proceed to get quotes for third party coverage from them. Most insurers have online portals where you can get quotes instantly by providing your car details like make, year, model etc. You can also visit nearest branches or call customer service numbers to have sales agents assess your profile and provide customized quotes.

Generally, factors like car type, usage, geographical location, claims history etc. Impact how much you eventually pay as third party premium yearly. Take quotes from at least 3 different providers for comparison.

CHOOSING COVERAGE SCOPE

By law, third party car insurance covers bodily injury and property damage liability to third parties. However, some enhanced third party policies also include limited coverage options for damage to your own car from accidents, fire or theft.

Evaluate available coverage scopes and pick the one aligning best with your needs and budget. For most motorists in Nigeria, getting basic third party liability plans with fire & theft damage cover makes sense financially.

PAYING PREMIUMS

Once satisfied with a quote, you can go ahead and make payment for your selected third party policy. Most insurers allow paying car insurance premium in full lump-sum or through flexible installments over 6-12 months. Ensure you get proper receipts each time you make payments.

The majority of insurers now allow online payments through secure payment gateways using debit/credit cards, bank transfers, USSD, mobile money etc. This enables convenient premium payment remotely even through your mobile phone.

GETTING & SUBMITTING DOCUMENTS

After payments, gather necessary documents required to activate and get your motor policy certificate from the insurance provider. Needed paperwork typically includes photocopies of your car purchase receipt, valid ID card, driver’s license, passport photograph etc.

Many leading insurers also have dedicated mobile apps through which you can digitally submit scanned copies of documents as part of seamless policy acquisition. Otherwise, physical copies can be submitted at nearest branch networks. Ensure you get an authentic insurance certificate as proof of valid third party car coverage.

GETTING INSURANCE COVER NOTE

While awaiting your insurance policy certificate, request for a cover note from the insurer to enable you to immediately start driving your car legally on roads. The cover note basically serves temporary proof of insurance and is usually issued within 1-2 days after payments and submission of documents. You can then drive risk-free with at least third party coverage as the underwriting process goes on in the background.

RENEWING YOUR POLICY

Most third party plans have an standard validity of one year after which they require renewal to remain operational. Usually, insurers will notify you through emails, texts or calls before expiry dates so you can renew seamlessly online or offline. Take advantage of no-claim bonuses and loyalty benefits that some insurers offer to reward careful renewing customers with discounted premiums.

By following these key steps, getting adequate and affordable third party insurance coverage for your car in Nigeria this year should be much easier. The process is even simpler and more convenient if you opt for digitally-inclined insurers. ALSO SEE MORE ON COMPREHENSIVE CAR INSURANCE IN NIGERIA.

Protect yourself from legal and financial troubles by driving only with valid third party motor insurance throughout 2024.

COST OF GETTING THIRD PARTY INSURANCE IN NIGERIA (2024)

The price of driving just went up in Nigeria: the Federal Government enacted a 200% increase in compulsory third-party vehicle insurance, raising the annual cost from ₦5,000 to ₦15,000.

When getting third party car insurance quotes in Nigeria this year, your premium rates will be determined by factors like car type, usage, location, coverage tier selected etc as highlighted earlier.

On average, basic third party premiums for private vehicles start from around ₦30,000 to ₦50,000 per annum currently. For commercial vehicles, rates range from about ₦60,000 to ₦150,000 yearly depending on bus types.

With additions like fire & theft damage cover, premium rates can rise to around ₦75,000 to ₦100,000 for private cars and ₦200,000+ for commercial buses on average.

Major insurers however run periodic discounts and price cuts that let you renew or signup for third party coverage at relatively lower premium costs. So always compare rates across providers to enjoy the best available deals.

Going for insurers investing big in digital channels like Leadway, AIICO and Cornerstone also lets you minimize operational costs which are passed on as savings to customers. This allows enjoying reduced premium rates for third party plans this year without compromising your coverage scope.

By setting aside an average of ₦5,000 – ₦10,000 Naira monthly towards your insurance premium kitty, you can also spread payments conveniently to match your cash flows using installment payment structures rather than paying a lump sum.

CONCLUSION

I believe you now know how to get a third party car insurance for your motor vehicle in Nigeria. Before rounding up, let’s throw more light on how getting a third party car insurance can benefit you.

Third party insurance essentially safeguards Nigerian motorists by providing protection from huge liability costs in case unfortunate accidents lead to damage of others’ properties or vehicles.

For smooth renewals and claims settlement, focus on insurers with stellar customer service and robust digital capabilities while following the guide above.

Invest appropriately towards protecting your prized asset and staying compliant as you cruise Nigerian roads.