Car Insurance Calculator

Third party insurance is the legal minimum required to drive in Nigeria. It costs a NAICOM-fixed ₦15,000 per year for private cars and covers up to ₦3 million in damage or injury you cause to a third party. What it does not cover is any damage to your own vehicle — if your car is stolen, written off in an accident, or destroyed by fire, third party insurance pays out nothing for your loss.

The decision between third party and comprehensive is primarily a function of your car's value. For cars worth under ₦2 million, comprehensive premiums can approach 10–15% of the vehicle's market value per year — this is difficult to justify for an older car approaching end-of-useful-life. For these vehicles, third party is typically the rational choice, and any savings should be put toward a vehicle replacement fund.

For cars worth ₦3 million or more, the calculation changes significantly. A comprehensive premium of 5% on a ₦5 million car is ₦250,000 per year. A single theft — and vehicle theft rates are significant in Lagos and Abuja — would result in a ₦5 million loss. The annual premium pays for itself in less than two months of risk coverage. For cars financed through an auto loan, the lending bank will almost certainly require comprehensive cover as a condition of the loan.

Third party, fire and theft is a middle-ground option offered by most Nigerian insurers. It adds fire damage and vehicle theft coverage on top of the basic third party, at a lower cost than full comprehensive. It does not cover accidental collision damage to your own car. This is a reasonable choice for cars in the ₦2M–₦4M range where full comprehensive premiums feel high but the theft risk is real.

When buying comprehensive insurance, look carefully at what additional riders are included. Flood cover is particularly important for Lagos and other flood-prone Nigerian cities — not all comprehensive policies include it automatically. Roadside assistance and towing cover (typically up to ₦50,000–₦100,000) is included by most major insurers. Personal accident benefit for the driver is another common inclusion.

Use our Car Comparison Tool to look up the value range of your specific car model, then use the calculator above to estimate your annual premium. Factor insurance into your total annual ownership cost alongside fuel, maintenance, and registration fees.