As we move further into 2025, the importance of Third-Party Auto Insurance in Nigeria has become more evident than ever. With stricter enforcement by the Nigerian Police and increased awareness about road safety, more drivers are asking questions about this essential coverage.
We are here to provide clear and simple answers to the most common questions Nigerians are asking about Third-Party Auto Insurance in 2025.
- What Is Third Party Auto Insurance and How Does It Work?
Think of Third-Party Auto Insurance as the basic insurance that every car owner must have by law in Nigeria. Let me break it down for you, when they say “third-party,” what it simply means is “the other person.”
So, if you are driving and you accidentally hit someone’s car or God forbid, you knock down someone, Third-party Auto Insurance will help pay for fixing their car or their hospital bills. In other word Third-party Auto Insurance covers accidental damage that you cause on other people’s car or property while driving.
But here is the important part, Third-party Auto Insurance won’t help fix your own car if it gets damaged. It only helps the other person. If you want insurance that will also cover your own car when something happens, then you need what we call the Comprehensive Auto Insurance, which gives you much more protection.
- Is Third-Party Auto Insurance Enough?
This is one of the most common questions we hear from drivers in 2025. The short answer is: it depends on your needs.
Third-Party Auto Insurance is the minimum legal requirement in Nigeria. It covers damages or injuries you might cause to other people or their property while driving. For example, if you accidentally hit another car or injure a pedestrian, your insurance will cover the costs.
However, Third-Party Auto Insurance does not cover damages to your own vehicle. If you want protection for your car, you will need to consider Comprehensive Auto Insurance , which offers more extensive coverage, including theft, fire and natural disasters or Third-party Auto base which offers third party protection and up to N500,000 for your own personal repairs in case of accidental damages.
So, is it enough?
If you are on a tight budget and only want to meet the legal requirement, Third-Party Auto Insurance is enough.
- How Much Does Third-Party Auto Insurance Cost in 2025?
The cost of Third-Party Auto Insurance is N15,000 (Fifteen Thousand Naira Only)
At Leadway Assurance, our Third-Party Auto Insurance premiums start from as low as ₦15,000 per year.
- Why should I pay for insurance when I am a careful driver and rarely have accidents?
Many drivers wonder if they are wasting money on insurance if they don’t end up using it. The good news is you are not! Life has a funny way of surprising us when we least expect it and having insurance literally puts you one step ahead of life because as the popular saying goes “failing to prepare means you are preparing to fail”.
- Can I Drive Without Third-Party Auto Insurance?
The simple answer is No.Since February 1st, 2025, the Nigerian Police Force have been strictly enforcing the law requiring all drivers to have Third-Party Auto Insurance. Driving without it can lead to serious consequences, including:
Fines: You may be required to pay a hefty fine of up to N250,000 on the spot.
Towing of Your Vehicle: In some cases, the police may impound your car until you provide proof of insurance.
Legal Action: Repeated offenses could lead to more serious legal consequences, including a jail term.
The bottom line? Driving without Third-Party Auto Insurance is not worth the risk. It’s better to stay protected and avoid unnecessary trouble.
- How Do I File a Claim with Third-Party Auto Insurance?
Filing a claim with your Third-Party Auto Insurance is simple and straightforward. Here is how it works:
- Report the Accident: If you are involved in an accident, report it to the police and your insurance company as soon as possible.
- Provide Documentation: You will need to provide details about the accident, including photos, police reports, and contact information for the other party involved.
- Wait for Assessment: Your insurance company will assess the situation and determine the coverage amount.
- Receive Payment: Once the claim is approved, we will cover the costs of damages or injuries to the third party.
At Leadway Assurance, we make the claims process quick and hassle-free, so you can focus on getting back on the road.
- Can I Transfer My Third-Party Auto Insurance to Another Car?
No, Third-Party Auto Insurance is tied to the specific vehicle it was purchased for. If you sell your car or buy a new one, you will need to purchase a new insurance policy for the new vehicle.
- What’s the Difference Between Third-Party and Comprehensive Auto Insurance?
This is another common question in 2025. Here is a quick breakdown:
| S/N | Third-Party Auto Insurance | Comprehensive Auto Insurance |
| 1. | Third-Party Auto Insurance: Covers damages or injuries you cause to others. It does NOTcover your own vehicle. | Covers damages to your own vehicle, as well as third-party liabilities. It also includes protection against theft, fire, vandalism and natural disasters. |
| 2. | If you are looking for basic coverage at an affordable price, Third-Party Auto Insurance is a great option | If you want full protection for your vehicle, consider upgrading to Comprehensive Auto Insurance |
- How Do I Renew My Third-Party Auto Insurance?
Renewing your Third-Party Auto Insurance with Leadway Assurance is quick and easy.
- Visit Our Website: Go to auto.leadway.com
- Check Your Policy: Review your current policy and make any necessary updates.
- Make Payment: Pay securely online using your debit card or bank transfer.
- Get Your Certificate: Once your payment is confirmed, you will receive your renewed insurance certificate via email.
Don’t wait until it is too late. Get your Third-Party Auto Insurance today and join millions of Nigerian drivers who trust Leadway Assurance to keep them safe on the road. Visit www.leadway.com to get started now or chat with LOLA by sending Hi to +234 812 999 7044!
