Third-Party Car Insurance in Nigeria: The recent directive by Inspector-General of Police Kayode Egbetokun to enforce third-party motor insurance nationwide from February 1, 2025, has sparked significant debate among Nigerian motorists. Let us know what it is, the whole matter, and what you need to know.

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Third-Party Car Insurance in Nigeria

While this insurance requirement has long been part of Nigerian law, the renewed emphasis on its enforcement has led to widespread concern and discussion. This move complies with directives from the Inspector General of Police, Kayode Egbetokun, and aligns with the Insurance Act and the Motor Vehicle (Third-Party Insurance) Act, which require all vehicle owners to have at least third-party insurance coverage.
Third-party insurance is not just a legal requirement in Nigeria; it is an essential safeguard for motorists and accident victims. Governed by the Motor Vehicles (Third Party Insurance) Act and other relevant laws, it ensures financial protection for third parties who suffer injuries, fatalities, or property damage from road accidents.
What is Third Party Insurance?
Third-Party Car Insurance in Nigeria is the minimum motor safety measure required of motorists by law in Nigeria. It provides financial coverage to third-party victims in the following areas:
- Bodily Injury or Death: Compensation for injuries or loss of life caused by the insured vehicle.
- Property Damage: Financial protection for damages inflicted on third-party property.
- This insurance allows victims to receive compensation without undue legal battles, reducing financial burdens.
Legal Basis for Third-Party Car Insurance in Nigeria
The Motor Vehicles (Third Party Insurance) Act[1] and Section 68 of the Nigerian Insurance Act (2003)[2] mandate that all vehicles operating on public roads must have valid Third Party Insurance.
Penalties for Non-Compliance:
- Fines: Offenders face financial penalties.
- Vehicle Impoundment: Uninsured vehicles may be confiscated.
- Criminal Prosecution: Defaulters may face legal actions and possible jail time.
- Recent Enforcement Directive by the Nigerian Police
- The Nigerian Police’s enforcement campaign, effective February 1, 2025, introduces stricter measures to ensure compliance. Key components include:
- Routine Document Checks: Officers will inspect insurance certificates at checkpoints.
- Real-Time Verification: Automated systems to identify fake or expired policies.
- Penalties for Defaulters: Defaulters risk fines, impounding of vehicles, or prosecution.
- This initiative underscores the government’s commitment to road safety and financial protection for accident victims.
How to Get Third-Party Car Insurance in Nigeria.
Obtaining Third Party vehicle insurance is simple:
- Choose a licensed insurer regulated by the National Insurance Commission (NAICOM).
- Provide required vehicle details, including registration documents.
- Pay the premium (typically ₦5,000 to ₦15,000 annually).
- Collect and store your insurance certificate for verification.
- Benefits of Third-Party Insurance Compliance: Securing insurance helps avoid fines and ensures your vehicle is roadworthy.
- Financial Security: Protect third parties and reduce your liability in accidents.
- Peace of Mind: Allows you to drive confidently, knowing you meet legal and ethical obligations.
Spot Fake Vehicle Insurance Policy in Nigeria
Vehicle Insurance Policy Price: If you are looking to spot a fake vehicle insurance policy, a quick place to begin is to look at the price. In many cases, because it is a quick money grab by fraudsters, fake policies are priced lower. When writing this, third-party policy ranges from Five Thousand Naira to Seven Thousand, Five Hundred Naira.
Ask About The Insurer: When buying any vehicle insurance policy, inquire about the insurance partner backing the broker or agent selling the policy to you. If you have any doubts about the institution, do your research online and check regulators like NIA & NAICOM licensing of such institution or their partners.
Lagos State Police Command enforces Third-Party insurance for Car owners. #ReelsByPulse pic.twitter.com/nqJwPbP4oA
— Pulse Nigeria (@PulseNigeria247) February 5, 2025

Bhakti Rawat is a Founder & Writer of InsureMyCar360.com. This site Provides You with Information Related To the Best Auto Insurance Updates & comparisons. 🔗