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Let’s paint a picture.
Emeka had just closed from work and was heading home through Lagos traffic on the Third Mainland Bridge. His brand-new Lexus GX 460 barely three months old, moved steadily through the evening Lagos gridlock.
Then, without warning, a commercial bus veered into his lane and crashed into his SUV.
The impact was serious and five passengers were injured. Emeka’s car was declared a total loss.
He was insured but had covered only under a Third-Party Motor Insurance policy.
That meant the injuries and damages to the other vehicle were covered. His own vehicle? Not at all. No support for repairs, No compensation and Nothing.
He bore the full cost all alone.
It’s a common oversight, and one that highlights the importance of knowing the difference between Third Party and Comprehensive Motor Insurance.
Let’s break it down.
What is Third Party Motor Insurance?
Third Party Motor Insurance is the most basic form of coverage, and it’s legally required in Nigeria for any vehicle on the road.
What it covers:
- Injuries or death to other people (pedestrians, passengers, or other drivers)
- Damage to another person’s car or property
- Legal responsibilities if you caused the accident
In short, it protects other people when you’re the one at fault. It’s the minimum safety net. And it’s crucial because without it, you’re not just vulnerable, you’re breaking the law.
How much does it cost?
- ₦15,000 for private cars
- ₦20,000 for minibuses
- ₦100,000 for trucks
Who it’s great for:
If you drive an older car or want to meet legal requirements without spending much, this policy does the job. It protects you from liability, keeps you compliant, and helps you drive without worry of legal consequences.
But here’s the catch: it doesn’t cover your own car.
What is Comprehensive Motor Insurance?
Comprehensive Motor Insurance is a wider safety net. It gives you all the third-party benefits and then goes further to protect you too.
What it covers:
- Third-party liabilities (injury, death, property damage)
- Damage to your own vehicle (whether or not you’re at fault)
- Theft or attempted theft
- Fire and vandalism
- Natural disasters like floods
- Riot, strike, and civil commotion
- Towing costs (up to ₦50,000.00 intrastate and N75,000.00 interstate)
- Personal accident benefits (up to ₦50,000.00)
How much does it cost?
Around 5% of the value of your vehicle. So if your car is worth ₦6 million, your annual premium would be about ₦300,000.
Who it’s great for:
If your car is high-value, recently bought, or your main means of income or family mobility, this option gives you peace of mind that no matter what happens, your finances won’t take the hit.
So, Which One Truly Protects You?
Let’s answer that with a few real-life questions:
1. Can you comfortably replace your car if it gets stolen or destroyed?
If yes, third-party might be fine. If not, you’ll want the cushion of comprehensive cover.
2. Do you only need basic legal protection to drive?
Then third-party gives you exactly that.
3. Do you live or work in high-risk areas, flood zones, traffic-prone zones, or commercial areas?
Comprehensive insurance may be a smarter choice.
4. Is your car brand new, financed, or very valuable?
That car deserves comprehensive cover. One accident could cost more than your entire premium.
The truth?
Both policies are useful. One helps you stay legally protected at the lowest possible cost. The other gives you financial safety across a wide range of risks, including those you don’t see coming.
Make the Right Choice for You
Third Party or Comprehensive – it’s not a competition. It’s about choosing what fits your car, your lifestyle, and your wallet.
If you need the basics and drive an older or low-value car, Third Party keeps you on the road, providing you with legal protection.
If you want peace of mind, broader protection, and support when the unexpected hits, Comprehensive is your best bet.
At Coronation Insurance, we offer both.
Whether you’re buying your first car or protecting a luxury vehicle, we will walk you through your options and help you make a smart, informed decision.
Do you have questions about which motor insurance suits you best: Third Party or Comprehensive? We’re here to help.
Reach out to Coronation Insurance via email at contactcentre@coronationinsurance.com.ng or call us on 02-012275475 or 02-012275476.
Let’s help you make the smartest choice for your car, your lifestyle, and your peace of mind.
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