Top 5 Best Car Insurance Companies in Nigeria (2020)
There’s many good car insurance companies in Nigeria, but also plenty of awful ones — here we cover the best value for money car insurance companies in Nigeria both for comprehensive coverage and the minimum coverage required by law in Nigeria.
While Car Insurance is required by law for all vehicles in Nigeria, you don’t have to buy an expensive comprehensive coverage that covers damage to your own vehicle — however you are required to get a basic liability coverage plan that protects insures you for any potential harm to someone else you may cause while driving. Because of this we have investigated over a dozen insurance companies car insurance plans and have got quotes from the best of them so we could give you a general idea of the difference in pricing from various car insurance companies.
Should You Get Comprehensive Coverage or Liability Coverage?
Before we get into which companies are the best and the price differences of their plans we’ll briefly touch on which plan would likely be best for you.
A comprehensive coverage plan generally protects you from theft, flooding, accident damage you cause to your own vehicle or others cause to it, or “civil unrest.” They also generally reimburse a portion of towing expenses if your vehicle needs it after an accident.
With a liability-only plan all they will cover is anything you do to someone else in an accident, be it vehicle damage or personal damage (you won’t be liable if you accidentally hit someone’s car and they break their leg as the insurance will protect you and work something out on your behalf).
In general we’d say if you’re not wealthy and/or you vehicle is worth less than 3 million Naria ($8000 USD) then we’d go with a simple liability plan and just put a little extra money in your saving account in case your vehicle gets damaged and you need to repair it. This is because liability coverage is only about 5000 Naria ($13 USD).
If you have a newer vehicle (2017+) we’d definitely consider going with comprehensive coverage as it’s much more likely to be stolen or vandalized, and it’s much more expensive to repair if you get in an accident. This type of coverage generally comes out to 12,000 Naria -> 30,000 Naria ($34 -> $80 USD) per month unless your car is particularly fancy and expensive. Over-all we’d say it’s worth it if you have the money and have a relatively new vehicle.
Our Personal Choice: Zenith Insurance
This would be our Choice for our car insurance in Nigeria as in our opinion they have the best balance of customer service and pricing, with premiums generally only being a couple percent higher than the low-cost provider we’ll mention below — often comparable, while having better customer service and slightly better financial strength in our opinion.
They will give you quotes online without you having to supply any contact information to them or anything, so they’re a great place to get an idea on the exact price a comprehensive plan would be for you if you aren’t sure if you can afford it or not. They also have very low premiums for comprehensive coverage of low-end cheaper vehicles, so if your car isn’t very expensive but still want comprehensive coverage we’d say Zenith is by far the best choice.
You can explore the pricing of different coverage options calculated based off the value you’d want to ensure through this page on their website — just click the policy options and click “get a quote.”
Best for Customer Service and Ease of Claims: Leadway Insurance
This would be the best if you don’t mind paying a bit extra for a hassle-free experience, as from our experiences and the experiences of people we know with these companies Leadway is by far the easiest most hassle-free company to deal with. Others sometimes delay claim payouts or are slightly pickier about what they cover while Leadway is generally easier when it comes to fixing your vehicle and paying the repair-company (or you) on-schedule without issue.
We’d say Zenith’s customer service is good enough and issues are rare with them, so we don’t feel it’s necessary to use leadway if you want good customer service — but if you want the absolute best in our view then they’re the best. Since their liability coverage options are the same as other companies (about 5000-7500 Naria) I don’t see a reason you’d go with any other company for Liability coverage.
You can explore their plans and request a quote on their website, but generally you’ll have to wait to get a real estimate on how much a plan with them will cost. Generally it’s about 5-10% higher than Zenith or Sovereign Trust Insurance when it comes to their comprehensive plans, or about the same for their liability-only plans.
Best for Low-cost Comprehensive Coverage: AIICO Insurance
If you want to pinch pennies — which we wouldn’t particularly recommend — then AIICO is a great choice. They don’t seem to be as responsive or helpful in terms of customer service, however they’re still usually very easy to deal with. They just aren’t as relaxed about the claims — you’ll need to insure you have adequate documentation (pictures, official estimate of repairs, potential police report, etc) and the processing of claims can take a few more days than the other insurance companies we mentioned in this article.
Generally from what we’ve found they charge about 5-10% less than other companies such Zenith or Sovereign Trust for their comprehensive plans, and about the same for their liability-only plans. Due to their lower cost we’d say they’re an option to consider so long as you don’t mind a little slower claim process.
You generally have to apply in person or over the phone, as their website isn’t very modern and often the online application is broken.
An Overall Good Choice: Sovereign Trust Insurance (STI)
This would probably be our 3rd or 4th choice overall, as while they have great customer service and good pricing (low-medium cost) their website has been broken for months and doesn’t allow you to view their auto insurance pages or get a quote online, which forces you to go into a physical location if you want to even get a quote, as often times getting a quote over the phone isn’t possible apparently.
If not for those website issues we’d say they would be the #2 or #3 choice, so if you live near a physical location in Lagos then they’re definitely an option to consider as their pricing is on the lower-end despite having very good customer service (in person).
It may seem like I don’t like Sovereign by what I said above, but that’s not the case — I just want to stress how bad their website is and how you’ll have to do everything in-person as I know many people consider that to be a deal-breaker. If you’re fine with doing business in person then they’re really a good choice with fantastic financial strength and prompt claims payment.
An Overall Alright Trustworthy provider: Mutual Insurance PLC
We’d say one of the other companies is likely a better choice, but we decided to include Mutual Insurance as they’re one of the only decent remaining car insurance providers we’re familiar with in Nigeria. The only real complaint we have with them is that their financial strength as a company isn’t the best, and we wouldn’t pay for long-term contracts (multiple years) with them because of this, just in case they go bankrupt.
Aside from their financial strength they have decent customer service and low-cost to fair pricing, so they’re an alright choice and if you already have a policy with them then I wouldn’t bother switching — it’s just they wouldn’t be our first choice for car insurance, although they’re an okay provider of it.
You can generally apply for their insurance on their website, however sometimes the application page doesn’t work and you’ll have to go into a physical location.