Best car Insurance in Nigeria- Comprehensive or Third party?

May be you have got a new car and presently, you are on the cross road wondering which insurance policy will serve you better. Understanding the conditions attached to any car insurance policy will help you to make a better decision about your car. In this article, we will explain the difference between the two major types of car insurance policies(comprehensive and Third party) so that we can help clear your doubt about which one among the two to sign up for.

The difference Between Third Party and Comprehensive car Insurance.

Third party car insurance policy covers a policyholder against damages and losses done to another person’s car- while comprehensive car insurance policy covers the policy holder against damages done to his own car, injuries or losses and the third person car.

Comprehensive Car Insurance policy

Comprehensive car insurance is the best since it covers both the damages done to your car, your losses and the damages done to the third party’s car. It is the preferred choice because if you mistakenly bash another person’s car and your car is under third party coverage, the insurance company will only fix the third party’s car living you to fix your car by yourself.


  • Covers covers against accident damage to the insured vehicle
  • It covers both theft and fire to the insured vehicle
  • It covers accidental damage to third party’s vehicle
  • It covers both death or injury to third party.
  • It’s comprehensive and cost effective.
  • Protection could also include damages done by natural disaster like earthquakes, floods, droughts, hurricanes etc


  • It does not provide damages due to aging
  • It’s expensive compare to third party insurance policy
  • It sometimes does not provide coverage done due to nuclear attack or war.
  • It does not provide coverage for damages done due to driving under the influence of alcohol
  • It does not provide coverage for damages done due to driving without drivers license.
  • It does not provide coverage for damages done after the initial damage assessment.

Third-Party Car Insurance

Here in Nigeria, the 1950 motor Act mandates that every vehicle in Nigeria must have at least a third party insurance coverage. This is just to give you a glimpse of how important vehicle insurance is in Nigeria.

Third party car Insurance covers against accidental damage done to third party’s vehicle only, or damages done to the properties of the third party. sometimes it can include death or injury done to the third party.


  • It covers third party’s damages or losses
  • Less expensive when compared to comprehensive car insurance
  • You are under the protection of the law.


  • Covers on the third party
  • Drinking and driving is excluded
  • Driving without license is also excluded


Outside these two major types of vehicle insurance coverage, there are other vehicle insurance coverage out there in the market. Each policy has it own benefits, limitations and exclusions. It’s your choice to customize your policy coverage according to your pocket.

Related Article: Insurance Premium In Nigeria and How it works

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