Top 5 Myths About Car Insurance in Nigeria, Busted 

“Don’t get caught without cover. We debunk 5 common car-insurance myths with 2025 rule updates, costs, and claim steps every Nigerian driver should know.”

“A taxi crushed my brother’s Corolla last year. No insurance. He sold his spare engine to repay a loan. A ₦150,000 policy would have saved him.”

This kind of story is not rare. As a matter of fact, it’s a norm. Insurance awareness in Nigeria is still below 1%. Yet from February 2025, the Police has enforced mandatory bc third-party insurance across some major cities with thousands of drivers being fined or have their cars towed for not possessing valid policies.  

And if you still think insurance is “for the rich,” check through this 2025 changes. 

What Changed in 2025

Myth 1: “Third-Party Insurance is Useless”

Here’s the blunt truth. Third-party insurance is the law. It protects other people, not just your own car. If you’re caught without it, expect towing or a fine. The minimum third- party tarrif set by NAICOM is at ₦15,000. This cover pays up to ₦3 million in claims for damage or injury to others.

Action Step:
Verify your certificate on the NIID portal ( www.niid.org ). Put inyour policy number or vehicle plate number to confirm authenticity. 

Myth 2: “All Insurers are Scammers”

Outdated. NAICOM’s latest release has shown that over 80% of motor claims are always paid by the registered insurers. The problem lies mostly with scammers and unlicensed operators.

To spot a real insurer:

• Confirm NAICOM licence  (  naicom.gov.ng ).
• Ask for the company’s claim service timeline. 
• Check online reviews before paying.
• Pay only to a verified corporate bank account.

AXA Mansard and Leadway Assurance typically process verified claims within 10–14 working days.

Myth 3: “Comprehensive Insurance is Too Expensive”

Wrong again. Comprehensive insurance usually costs between 3–7% of your car’s value.

For a ₦3,000,000 car, the cost is between ₦90,000–₦210,000 per the full year, far less than the cost of getting new tires or a single major repair.

If the uninsured car is stolen tomorrow, you lose the entire ₦3 million. 

Myth 4: “Insurance is Magic, it comes with ni Responsibilities”

These is a myth. Insurance claims might not be released if  you: 

• were drunk- driving or driving under influence.
• are an unlicensed driver.
• report the damage to your vehicle late (most times after 48 hours- 72hours).
• were using the car for commercial work when it was declared private.

After a crash,:

1. Ensure safety.
2. Call the police to get a FIR (First Information Report).
3. Notify your insurer within 24–48 hours.
4. Take photos and witness contacts.
5. Submit documents for claim processing.

Myth 5: “You Must Buy Through an Agent”

That used to be true, not anymore.

NAICOM’s Insurtech Guidelines released in August 2025, regulating digital insurance platforms has ensured online purchases are safe as long as they are verified.

You can compare and buy cover directly on platforms like MyCover.ai or AutoGenius.

To check:

• Confirm the insurtech’s licence number on NAICOM’s site.
• Verify policy instantly on NIID.org after purchase.

Comparison Table: Know What You’re Paying For

Nigeria’s Insurance Market in 2025: 

• Motor insurance makes up 60% of non-life policies.

• Claim settlement ratios are improving due to NIIRA recapitalisation.
• Third-party enforcement has increased new registrations by 40% since Q1 2025 (source: NAICOM Bulletin, May 2025).

The industry is slowly cleaning up. 

Call to Action

Check your third-party certificate now:
Visit  www.niid.org  → Enter plate or policy number → Verify instantly.

Don’t wait for an accident to test your luck.