Driving in Nigeria can feel like an extreme sport with the bad roads and recklessness of other road users. With the high rate of road accidents in Nigeria, car insurance is the best way to protect yourself, passengers, and the public from damage and loss. Choosing a car insurance plan can feel overwhelming, given the many options and technicalities. Still, I've summarised all you need to know about auto insurance and listed the top insurance companies and their policies. What is Car Insurance and Why Do You Need One? Car insurance, also known as auto or vehicle insurance, is a contract between you and an insurance company that provides financial protection for your car against unexpected events. This insurance covers the costs of accidents, theft, fire, natural disasters, and other unforeseen damages, so you're not left with a huge financial burden when something goes wrong. Car insurance protects you and other road users. For example, if a driver is involved in an accident, your insurance policy can cover the damage to another person's vehicle or property and medical costs if someone is injured. Depending on the type of car insurance policy you choose, you can have different levels of coverage. READ ALSO: Car Prices in Nigeria vs. Dubai: Why are Cars Cheaper in Dubai? Types of Car (Auto) Insurance in Nigeria According to the Federal Road Safety Service Commission's (FRSC) website, there are three main types of car insurance in Nigeria: Third-Party Insurance This is the basic, legally required type of car insurance in Nigeria and many other countries. It covers damages you cause to other people’s property or injuries from an accident. Third-party insurance does not cover damages or losses to the insured’s vehicle caused by accidents, natural disasters, or theft. Comprehensive Car InsuranceThe comprehensive car insurance covers third-party liabilities and damages to your vehicle due to accidents, fire, theft, and even natural disasters. It offers a broader range of protection and is ideal for peace of mind. Third-Party Fire-Theft InsuranceThird-party fire-theft insurance only covers liability and damages caused by fire damage to and theft of the vehicle. Here are five leading insurance providers renowned for offering some of the best insurance plans in Nigeria. 1. AIICO Insurance Plc With a consistent track record of prompt claims settlement and strong risk management practices, AIICO Insurance Plc is a longstanding player in the Nigerian Insurance market. They offer a variety of plans, from comprehensive and third-party auto insurance to content, health, and travel insurance policies. Their digital platforms simplify everything from getting your policy to tracking and filing claims. Insurance Policy and Pricing Comprehensive auto insurance: 5% per Year, i.e., 5% of your vehicle's insured value per year. For instance, if your car is valued at 1,000,000, the annual premium would be 50,000. Third-Party Auto Insurance Policy: The price of this policy ranges from 15,000 to 100,000 per year, depending on your package and vehicle type. Get a Quote: AIICO PLC Read Also: GTBank's POS with Free Transactions – Here’s What You Should Know. 2. AXA Mansard Insurance Plc AXA Mansard leverages the global expertise of its parent company, the AXA Group, to provide unique customer-centric insurance solutions. Awarded the eKomi Bronze seal of approval and a high customer service rating, AXA Mansard is an excellent choice for those looking for a reliable insurance company in Nigeria. They offer a variety of customisable motor insurance plans: AutoFlex, AutoPlus, AutoClassic, and AutoGo, but their pricing details are not publicly listed on their website. Get a Quote: AXA Mansard Auto Insurance. 3. Leadway Assurance Plc How a company treats its staff reflects its values. Ninety per cent of employees at Leadway Assurance say it's a great place to work. Established in 1970, Leadway Assurance Plc is regarded as one of Nigeria's foremost insurance companies for its efficiency and customer reliability. Insurance Policy and Pricing Third-party Insurance: This policy is priced based on vehicle class. Private vehicles are priced at 15,000 annually, while commercial vehicles range from 20,000 to 100,000 annually. Get a Quote: Buy Leadway Third-Party Insurance. Third-party Auto Base: This policy covers everything a third-party insurance company covers, including partial coverage of damages to your vehicle. Price: 30,000/year. Get a Quote: Leadway Third-Party Auto Base Insurance. The pricing details for the Comprehensive and Third-party Scratch Card Insurance Policy are not publicly listed on their website. READ ALSO: Charcoal Toothpaste: Pros, Cons, and Top Brands in Nigeria. 4. Mutual Benefits Assurance Plc Mutual Benefits Assurance is praised for swift claims processing and competitive pricing. It is perfect for those looking to meet legal requirements with minimal stress. They offer comprehensive auto insurance at a premium of 50,000 and third-party auto insurance at a premium of 15,000. How to Choose the Right Auto Insurance Plan Choosing car insurance can feel overwhelming. Here is a checklist for you: Assess your coverage needs. Be sincere with yourself and critically assess your driving habits, budget, and risk tolerance. Compare different insurance companies and their packages and prices. Decide based on value and not pricing. Review the fine print. Always check exclusions, claim procedures and other conditions before signing. Look for perks like free vehicle inspections, annual inspections, etc. Whether you're just trying to stay legal on the road or want full coverage for peace of mind, the right car insurance plan makes all the difference. Don’t wait until something goes wrong before protecting yourself, your car, and others.