Nigeria’s bustling roads are filled with millions of vehicles daily, and regardless of where you drive, car insurance remains a mandatory requirement by law. Despite this legal obligation, many Nigerian drivers risk driving without proper coverage. At Leadway Assurance, we believe it’s essential to understand both the legal requirements and the practical benefits of maintaining adequate insurance coverage.
The Legal Requirement
Car insurance became compulsory in Nigeria through the Insurance Act of 2003 in section 68, which mandates that all vehicle owners must have, at minimum, third-party motor insurance. This requirement serves as a crucial protective measure for all road users and is enforced by the Federal Road Safety Corps (FRSC) and various state traffic agencies.
Why Car Insurance Matters in Nigeria
Protection for Others
The primary purpose of mandatory car insurance is to protect innocent third parties who may suffer injury or property damage in accidents involving your vehicle. Your insurance company bears the financial responsibility, rather than leaving victims without compensation. At Leadway, we take this responsibility seriously, offering robust third-party coverage across all our auto insurance products.
Financial Security
Car accidents happen daily on Nigerian roads. Insurance helps distribute these financial risks, preventing significant economic hardship for individuals involved in accidents. We’ve seen firsthand how proper insurance coverage can save families from financial disaster following unexpected road incidents.
The Risks of Driving Without Insurance
Legal Consequences
Driving without insurance in Nigeria is a serious offence that can result in hefty fines. Authorities may impound your vehicle and repeat offenders might face imprisonment. Your driving license could also be suspended or revoked in severe cases. We’ve helped many customers avoid these penalties by providing quick, affordable insurance solutions.
Financial Liability
Without insurance, you bear the full financial responsibility for medical bills for injured parties, property damage repairs, legal fees if you’re sued, and your own vehicle repair costs. These expenses can quickly accumulate to millions of naira, which few Nigerians can afford to pay out of pocket.
Our Auto Insurance Solutions
Leadway Comprehensive Auto Insurance
Our Comprehensive Auto Insurance delivers maximum protection, covering accidents, fire, theft, and natural disasters affecting both your vehicle and that of the third party involved in the accident. This is the best option if you’re look for all-round protection. The premium (I.e. the cost) for this nationwide is 5% of your vehicle’s value.
Leadway Third-Party Auto Insurance
Our affordable Third-Party Auto Insurance covers accidental damage to another person’s vehicle and bodily injuries to third parties. This is the legal minimum requirement that every car owner must have to drive in compliance with Nigerian law. The cost is significantly less than what you spend on data in a year!
Leadway Third-Party Autobase Insurance
We offer standard third-party coverage plus protection for your own vehicle—an ideal middle-ground option for cost-conscious drivers who still want meaningful protection. This innovative product is exclusive to Leadway. It provides full third-party coverage and up to ₦500,000 for repairs to your own car, all for just ₦30,000 per year. Think of it as Third-Party Auto Insurance with mini-comprehensive benefits. This balanced solution has been a massive hit with Nigerian drivers who want significant coverage without emptying their wallets.
Drive Legally, Drive Safely with Leadway
Car insurance is more than just a legal requirement; it is a vital part of responsible vehicle ownership. The risks of driving uninsured, both legally and financially, far outweigh the cost of maintaining proper coverage with Leadway Assurance.
With the Nigerian Police Force enforcement of Auto Insurance now in effect as of February 2025, driving without at least a Third-Party Auto Insurance policy can result in fines of up to ₦250,000 or even jail time.
Ready to get your car protected? visit auto.leadway.com or DM us on any of our social media platforms, Instagram, Twitter, Facebook or LinkedIn. Let us help you drive confidently and safely on Nigeria’s roads.
