Over 12 million vehicles operate on Nigerian roads, yet fewer than 2 million carry legitimate car insurance beyond fake certificates. Choosing the right car insurance in Nigeria protects you when accidents happen, keeps you legal, and ensures claims actually get paid. With 39 licensed car insurance companies offering everything from ₦8,000 third party car insurance to comprehensive coverage for luxury vehicles, Nigerian drivers face overwhelming choices.
This ranking reviews Nigeria's top car insurance companies based on financial strength, claims settlement records, coverage breadth, pricing, and service quality. Whether you need cheap car insurance for a tokunbo Camry or comprehensive car insurance for a new SUV, this guide shows exactly which insurers deliver value, which ones pay claims fast, and how much is car insurance in Nigeria for your specific vehicle.
We evaluated Nigerian car insurance companies across six factors:
Financial Strength: 2025 H1 gross written premiums, profit figures, claims-paying capacity, NAICOM capital compliance (₦15 billion minimum under NIIRA 2025)
Claims Settlement: Average processing time, 2025 H1 total claims paid, settlement reputation from customer reviews and industry reports
Coverage Quality: Third party property damage limits, comprehensive policy breadth, add-ons available, flood/riot/vandalism explicit coverage
Premium Competitiveness: Typical costs for ₦3M, ₦8M, ₦15M vehicles compared to identical coverage elsewhere
Customer Service: Branch network, call centre responsiveness, agent availability, digital capabilities
Motor Insurance Focus: Market share in motor segment, specialized understanding of vehicle risks
Why Leadway Leads:
Leadway dominates Nigerian motor insurance through nationwide reach, fast claims, and balanced pricing. The company collected over ₦170 billion in total premiums in 2024 and paid ₦117 billion in claims (₦49.5B non-life segment), demonstrating financial capacity to honor even large motor claims. Leadway operates 50+ branches nationwide, making it easy to find car insurance agents near me in every state.
2025 H1 Performance:
Continued strong growth in motor segment with consistent claim payouts maintaining industry-leading reputation.
Motor Insurance Products:
Claims Processing: 35-45 days average (faster than 60-90 day industry standard)
Best For: Most Nigerian drivers seeking reliable, affordable car insurance with proven claims payment, families needing comprehensive coverage, daily commuters wanting fast settlements
Real Example: Adekunle insures his ₦6 million Toyota Highlander with Leadway for ₦240,000 annually. When Lagos flooding damaged his engine (₦1.8 million repairs), Leadway inspected, confirmed coverage, and settled in 38 days without hassles.
Why AIICO Ranks High:
AIICO topped 2024 insurance rankings with ₦156.1 billion total premiums (45.5% growth from ₦107.3B in 2023) and recorded ₦102.7 billion in H1 2025. The company paid ₦42.5 billion in H1 2024 claims, highest among listed insurers. AIICO's motor insurance premiums typically run 10-15% below competitors for identical coverage while maintaining solid claims payment.
2025 H1 Performance:
Strong premium growth to ₦102.7 billion with sustained claims-paying capacity across all segments including motor insurance.
Motor Insurance Products:
Claims Processing: 45-60 days average
Payment Options: Monthly installments available (₦8,000/month for ₦96,000 annual policy)
Best For: Budget-conscious drivers wanting comprehensive coverage without overpaying, first-time car owners, tokunbo vehicle buyers, families seeking cheap car insurance without sacrificing quality
Real Example: Mrs. Okafor chose AIICO's ₦140,000 comprehensive for her ₦4 million Honda Accord, beating competitor quotes by ₦30,000-₦40,000. When her windscreen cracked, AIICO replaced it within a week at no cost.
Why AXA Mansard Excels:
AXA Mansard received ₦138.5 billion in 2024 premiums (34.9% YoY growth) and commands ₦71.9 billion market cap, largest among listed insurers. As part of global AXA Group, the company brings international standards to Nigerian motor insurance. H1 2025 results showed 24% revenue increase driven by policy renewals and new business across all verticals.
2025 H1 Performance:
Revenue growth of 24% with strong motor insurance renewals and digital adoption through MyAXA Plus platform.
Motor Insurance Products:
Claims Processing: 30-40 days for straightforward claims
Digital Excellence: MyAXA Plus app for policy purchase, management, claims submission, instant car insurance quotes
Best For: Luxury vehicle owners (₦15 million+), expats, business executives, drivers wanting premium service with genuine parts and international-standard insurance
Real Example: Dr. Emeka pays ₦1.8 million annually for his ₦25 million Range Rover with AXA Mansard. After switching from a cheaper insurer using tokunbo parts, he values AXA's genuine Land Rover parts, courtesy car provision, and 30-day settlements despite higher premiums.
Why Custodian Stands Out:
Custodian achieved ₦124.28 billion gross revenue in H1 2025 (up from ₦82.76B H1 2024), with profit before tax reaching ₦30.48 billion. The company's industry-leading third party property limits (₦25 million vs ₦5-10 million competitors) protect drivers from catastrophic out-of-pocket exposure when damaging expensive vehicles or property.
2025 H1 Performance:
Strong revenue growth to ₦124.28 billion with ₦26.39 billion profit, demonstrating financial capacity for large motor claims.
Motor Insurance Products:
Claims Processing: 40-55 days average
Best For: Commercial drivers (Uber/Bolt/taxi), logistics companies, daily Lagos/Abuja commuters in high-traffic areas with expensive vehicles, risk-conscious drivers wanting maximum third party protection
Real Example: Bolaji, an Uber driver with a ₦5 million Camry, chose Custodian's ₦200,000 comprehensive for the ₦25 million third party limit. Driving 12 hours daily through VI and Lekki (areas with ₦20 million+ vehicles), if he crashes into a ₦40 million G-Wagon, most insurers' ₦10 million limits leave him personally paying ₦30 million. Custodian's ₦25 million limit protects him from bankruptcy.
Why NEM Performs Well:
NEM recorded ₦75.41 billion insurance revenue in Q2 2025, up 66% from ₦45.47 billion Q2 2024, making it one of Nigeria's fastest-growing general insurers. The company's strong motor insurance focus and unique Enhanced Third Party product fills the gap between basic third party and expensive comprehensive coverage.
2025 Performance:
66% revenue growth demonstrates strong market acceptance and operational efficiency in motor insurance segment.
Motor Insurance Products:
Claims Processing: 45-65 days average
Best For: Mid-range vehicle owners (₦3-10 million), drivers wanting more than third party but unable to afford full comprehensive, Port Harcourt/Southeast drivers (NEM strong regional presence)
Real Example: Chioma bought NEM's Enhanced Third Party for ₦35,000 for her ₦4.5 million Corolla in Port Harcourt. Unable to afford ₦162,000 comprehensive but scared of basic ₦15,000 third party (one scratch costs ₦80,000 to fix), the ₦35,000 enhanced covers ₦300,000 own damage plus third party. When someone hit her bumper (₦120,000 repair), NEM paid ₦100,000 (minus ₦20,000 excess).
Why Cornerstone Appeals:
Cornerstone recorded nearly ₦40 billion in 2024 premiums with strong digital adoption and innovative products. The company targets younger, tech-comfortable drivers with streamlined online purchasing, instant car insurance quotes, and competitive premiums typically 15-20% below traditional insurers for similar coverage.
2025 Performance:
Continued innovation in digital distribution and product customization appealing to millennial/Gen Z drivers.
Motor Insurance Products:
Claims Processing: Digital submission, 42-60 days average
Digital Experience: Easy online purchase, mobile app, instant quotes, 24-48 hour policy delivery vs 5-7 days competitors
Best For: Tech professionals, startup employees, first car buyers, young drivers (under 35), anyone comfortable with digital-only insurance
Real Example: Tunde (27-year-old fintech analyst, ₦3.8 million Benz C300) chose Cornerstone's ₦120,000 comprehensive over Leadway's ₦152,000. He bought the entire policy on his phone in 15 minutes, downloaded car insurance paper as PDF instantly, and when his side mirror got stolen (₦85,000), claimed online and got reimbursed in 42 days.
Why emPLE
emPLE positions itself as a modern, digitally enabled insurer focused on clarity, speed, and customer-first design. Unlike traditional insurers with complex policy wording and agent-heavy processes, emPLE simplifies motor insurance by offering transparent pricing, easy-to-understand coverage, and a largely digital onboarding experience. This makes it especially attractive to younger, urban drivers who want insurance without unnecessary friction.
Why Consider EMPLÉ
Motor Insurance Products
(Note: emPLE focuses on core motor coverage rather than heavily layered add-ons common with legacy insurers.)
Claims & Service Experience
Best For
Urban professionals, first-time car owners, tech-comfortable drivers, and anyone seeking clean, modern car insurance without agent pressure or complicated policy structures.
Why Heirs
Heirs Insurance is backed by strong institutional capital and a reputable financial group, positioning it as a credible alternative to roadside “₦5,000 insurance” scams. The company focuses on accessible, affordable, and fully NAICOM-compliant motor insurance, ensuring drivers stay legal while avoiding inflated premiums. Its growing digital distribution and bank-adjacent ecosystem make policy verification and renewal easier than with many legacy budget insurers.
Why Consider Heirs
Motor Insurance Products
Claims & Service Experience
Best For
Drivers seeking cheap but genuine third party insurance, ride-hailing drivers operating on tight budgets, owners of older vehicles (₦1 million–₦3 million range), and anyone prioritizing legal compliance over luxury service.
9. Sanlam Insurance – Best for Stability & Long-Term Credibility
Why Sanlam
Sanlam Nigeria is part of the Sanlam Group, one of Africa’s largest and oldest financial services institutions with operations across 30+ countries. This continental backing gives Sanlam a level of balance-sheet strength, governance, and risk management discipline that many smaller Nigerian insurers lack. While not the cheapest or most aggressive on pricing, Sanlam prioritizes stability, underwriting discipline, and long-term claims-paying ability.
Why Consider Sanlam
Motor Insurance Products
Claims & Service Experience
For Best
Drivers who value long-term insurer stability, conservative policy terms, and institutional credibility over the lowest premium. Particularly suitable for mid-income professionals, SME vehicle fleets, corporate drivers, and individuals who plan to maintain continuous insurance relationships over many years.
Why Zenith General:
Zenith General Insurance integrates seamlessly with Zenith Bank accounts, enabling easy premium payments via existing banking relationships. Corporate employees can arrange payroll deductions for automatic monthly premium payments. The company offers good rates for companies banking with Zenith.
Motor Insurance Products:
Best For: Zenith Bank customers, corporate employees with payroll insurance options, salaried workers seeking convenient payment methods
Why Coronation
Coronation Insurance is part of the Coronation Group, a diversified financial services group with strong presence in asset management, investment banking, and private wealth. This institutional background positions Coronation as a corporate-focused insurer with strong risk management practices, particularly suited for high-value vehicles and professionally managed fleets.
Why Consider Coronation
Motor Insurance Products
Claims & Service Experience
Best For
Corporate executives, fleet managers, SMEs, and owners of high-value or financed vehicles who prioritize structured service, institutional credibility, and predictable claims handling over bargain pricing.
12. Rex Insurance – Best for Regional Reach & Traditional Insurance Buyers
Why Rex
Rex Insurance is one of Nigeria’s long-established indigenous insurers, with a solid footprint in regional markets outside Lagos and Abuja. While not aggressively digital, Rex maintains relevance through physical branches, agent networks, and relationship-driven service, particularly in eastern and northern Nigeria.
Why Consider Rex
Motor Insurance Products
Claims & Service Experience
Best For
Drivers outside major commercial hubs, owners of older or mid-value vehicles, and individuals who prefer traditional, relationship-based insurance service rather than digital-first platforms.
Understanding types of car insurance helps you choose appropriate coverage:
Third Party Car Insurance (Legally Mandatory Minimum)
Third party car insurance covers ONLY damage your vehicle causes to other people and property. It does NOT cover your own vehicle damage.
Cost: ₦8,000-₦35,000 annually
Coverage:
Comprehensive car insurance covers EVERYTHING including your own vehicle plus third party liability.
Cost (How Much Is Comprehensive Car Insurance in Nigeria):
Coverage:
Actual costs depend on vehicle value, age, make, model, driver age, location, insurer, and coverage type.
By Vehicle Value
|
Vehicle Value |
Third Party |
Third Party Fire & Theft |
Comprehensive |
|
₦1M-₦2M |
₦10K-₦18K |
₦25K-₦35K |
₦30K-₦80K |
|
₦2M-₦4M |
₦12K-₦20K |
₦30K-₦45K |
₦60K-₦160K |
|
₦4M-₦6M |
₦15K-₦25K |
₦35K-₦55K |
₦120K-₦300K |
|
₦6M-₦10M |
₦18K-₦30K |
₦45K-₦70K |
₦210K-₦500K |
|
₦10M-₦20M |
₦25K-₦40K |
₦60K-₦90K |
₦400K-₦1.3M |
|
₦20M-₦40M+ |
₦35K-₦60K |
₦80K-₦150K |
₦800K-₦4M+ |
Vehicle Age:
Vehicle Make/Model:
Driver Age:
Location:
Driving Record:
Usage:
Step 1: Accident Occurs
Step 2: Report to Insurer (Within 48-72 Hours Critical)
Step 3: Submit Claim Documents (Within 5-7 Days)
Required paperwork:
Step 4: Insurer Investigation (7-21 Days)
Step 5: Claim Approval & Settlement (14-90 Days Total)
For comprehensive own-damage claims:
For third party liability claims:
For theft/total loss:
Settlement Timelines:
Step 6: Claim Payment
Nigerian law (Motor Vehicle Third Party Insurance Act) mandates ALL vehicles on Nigerian roads carry minimum third party car insurance. Driving without insurance carries:
Police, VIO (Vehicle Inspection Officers), and FRSC (Federal Road Safety Corps) regularly check for valid car insurance paper at checkpoints.
Without insurance: Single accident costs ₦500,000-₦5 million+ out-of-pocket (your vehicle repairs + third party damages + medical bills + legal fees if sued)
With comprehensive car insurance: You pay ₦80,000-₦400,000 annual premium + ₦20,000-₦100,000 deductible per claim. Insurer covers everything else up to millions.
Example: You crash your ₦8 million Highlander into a fence (₦2.5 million vehicle repairs + ₦800,000 fence repairs = ₦3.3 million total). With comprehensive car insurance (₦320,000 annual premium), you pay ₦50,000 deductible. Insurer pays ₦3.25 million. Without insurance, you pay ₦3.3 million cash.
NAICOM estimates 60% of vehicle insurance papers on Nigerian roads are counterfeit. Protect yourself by verifying every policy:
How to Verify Car Insurance Policy Number Online
NAICOM Motor Insurance Database (Official Method):
Insurer Website:
Call Insurer Directly:
Why Verification Matters
Always verify car insurance policy number online free using NAICOM database BEFORE paying premiums or accepting certificates from car insurance agents.
For face-to-face service:
Visit Insurer Branches:
NAICOM Licensed Brokers:
New Car Owners (₦5-20 Million Vehicles): Comprehensive car insurance is typically mandatory for financed vehicles, making claims settlement speed an important consideration. Owners of newer, higher-value vehicles should consider insurers known for faster processing and genuine parts usage. Installing tracking devices can reduce premiums by 10-15%, while choosing lower deductibles (₦50,000 vs ₦100,000) may provide better peace of mind during early ownership years when drivers are still adjusting to vehicle value and replacement costs.
Used/Tokunbo Owners (₦2-5 Million Vehicles): For vehicles worth around ₦3 million or more, comprehensive coverage (typically ₦90,000-₦150,000 range) can protect against significant total loss exposure. Budget-conscious buyers might find better value with mid-tier insurers that offer 10-20% lower premiums than premium brands while maintaining adequate coverage. For vehicles valued between ₦1-2 million, enhanced third party options (where available at ₦25,000-₦45,000) can provide limited own-damage coverage plus fire and theft protection as a cost-effective middle ground between basic third party and full comprehensive.
Commercial Drivers (Uber/Bolt/Taxi): High daily mileage and extended exposure in traffic make maximum third party limits particularly important for commercial use. Commercial policies typically cost 50-100% more than private use coverage, but provide significantly higher third party property limits (₦20-25 million vs standard ₦5-10 million). This additional protection becomes critical when operating in areas with expensive vehicles, where a single accident could result in damages exceeding standard policy limits. Fast claims settlement also matters more for commercial drivers who cannot afford extended periods without their income-generating vehicle.
Luxury Vehicle Owners (₦15 Million+): Premium service often justifies higher premiums (4-7% of vehicle value vs 3-4% for regular vehicles) when protecting expensive assets. Key considerations include whether approved workshops use genuine manufacturer parts versus aftermarket alternatives, availability of courtesy vehicles during extended repairs, and typical settlement timelines. The premium difference between budget and premium insurers can be substantial (sometimes 30-50% more), but may provide meaningful value through better parts quality, faster service, and more experienced handling of high-value claims.
What is the minimum statutory third party limit required by Nigerian law? Nigerian law requires minimum ₦1 million third party property damage cover under Motor Vehicle Third Party Insurance Act. However, most reputable insurers now offer ₦3-25 million limits because ₦1 million is insufficient for modern vehicle repair costs. A minor collision with a ₦15 million SUV can easily exceed ₦1 million damage.
How does the proportional average clause affect underinsured comprehensive claims? If you insure a ₦10 million vehicle for only ₦6 million (40% underinsured) and suffer ₦3 million damage, insurers apply proportional average: You only recover (₦6M/₦10M) × ₦3M = ₦1.8M, personally paying ₦1.2M. Always insure vehicles at full replacement value to avoid this penalty clause common in Nigerian motor policies.
What specific documentation is required to prove ownership for total loss claims? For total loss or theft claims, insurers require: original vehicle registration (proof of ownership), original purchase invoice or transfer documents, valid driver's license, comprehensive police report filed within 24-48 hours of theft, FRSC vehicle license, certificate of roadworthiness (if applicable), all vehicle keys, and original insurance certificate. Missing documentation delays or denies claims.
How do insurers determine actual cash value vs agreed value for total loss settlements? Actual cash value deducts depreciation (typically 15-25% annually) from replacement cost. A ₦10 million vehicle (3 years old) pays ₦5.6-6.5 million after depreciation. Agreed value policies (common for luxury/classic cars) pay predetermined amount regardless of depreciation. Always verify which valuation method your policy uses before purchasing.
What constitutes material non-disclosure that can void motor insurance policies? Material facts requiring disclosure include: previous accident history (last 5 years), insurance claims/declinations, vehicle modifications (engine, suspension), use for commercial purposes (Uber/Bolt), driver medical conditions (epilepsy, vision impairment), criminal convictions (DUI, reckless driving). Non-disclosure discovered during claims investigation voids the entire policy retroactively.
What is the claims notification timeline and how does late reporting affect settlement? Most Nigerian motor policies require accident notification within 48-72 hours and formal claim submission within 7 days. Late reporting without reasonable justification (hospitalization, remote location) gives insurers grounds for claim reduction or denial. For theft, notification must occur within 24 hours to police and insurer. Always carry insurer's 24/7 hotline number.
Nigerian drivers have solid car insurance options across 50+ NAICOM-licensed insurers, from ₦8,000 third party to ₦3 million+ comprehensive coverage. Leadway Assurance leads for balanced coverage, fast claims, and nationwide reach. AIICO Insurance offers best value with 10-15% lower premiums. AXA Mansard delivers premium service for luxury vehicles. Custodian provides highest third party limits for commercial drivers. NEM fills the mid-range gap with innovative Enhanced Third Party product.
Choose car insurance based on vehicle value, usage, budget, and risk tolerance; and always verify car insurance policy number online free using NAICOM database before paying premiums. With 60% fake certificates on Nigerian roads, verification protects you from fraud, legal penalties, and uninsured liability exposure.
This ranking provides general information about car insurance companies in Nigeria based on publicly available H1 2025 and 2024 data. Coverage details, premiums, and features vary by insurer, vehicle, driver, and location. Always verify information with licensed car insurance companies and read policy documents before purchasing.