• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

GetInsurance

  • General Insurance
  • Car Insurance
  • Health Insurance
  • Life Insurance
  • Travel Insurance
  • Reviews
  • Others
    • Business Insurance
    • Agents & Brokers
    • Home & Properties
  • Apply for Insurance
You are here: Home / Car Insurance / Comprehensive VS Third-Party Car Insurance in Nigeria

Comprehensive VS Third-Party Car Insurance in Nigeria

December 20, 2021 by Get Insurance Today

The choice of choosing a particular policy plan for your motor vehicle today relatively depends on some factors. However, regardless of your reason to take up a car insurance legal, necessity, protection, etc., understanding the features and conditions of holding any form of car insurance policy could help you make a better decision that suits you.

In this post, we will be discussing the difference between third party insurance and comprehensive insurance.

Please note that there are several other types of car insurance policies available in the market. Each with its specific coverage level and add-ons options. You can customize your car insurance coverage according to the budget, extend the cover to the person driving it, and so on – when purchasing your car insurance policy.

comprehensive insurance vs third party insurance

What is the Difference Between Third Party Insurance and Comprehensive Insurance?

The significant difference between third-party car insurance and comprehensive car insurance relies heavily on what they both cover.

Third-party insurance covers an insured only against third-party damages and losses – while a comprehensive car insurance policy covers an insured against his damages or injury as well as third-party costs.

Benefits, Limitations And Exclusions

1. Comprehensive Insurance Policy

The comprehensive insurance policy is the best car insurance plan as it covers not only third-party damages and losses, but also covers damages and losses caused to you and your car.

a. Benefits
  • Covers the insured’s car damages as well
  • It is more expensive but highly cost-effective
  • Protection could include theft
  • Protection could also include damages caused by a natural disaster
b. Limitations
  • It does not provide coverage for damages due to aging
  • It does not provide coverage for damages and losses caused by nuclear attacks or war
c. Exclusions
  • Driving under the influence of alcohol
  • Driving without a driver’s licence
  • There is no protection against consequential damages after initial damage assessment
  • Any damage that occurs as a result of negligence would also be excluded

2. Third-Party Car Insurance

In Nigeria, the minimum insurance cover that a vehicle owner is required to have by the Motor Vehicles Act of 1950 is the third-party insurance.

a. Benefits
  • Covers for third-party liability
  • It is less expensive compared to a comprehensive car insurance policy
  • Since it is backed by law, it can protect you from the law
b. Limitations
  • Only covers for third-party liability
  • Less cost-effective, because you end up fixing your car
c. Exclusions
  • Drunk Driving
  • Also, it excludes driving without a licence

Conclusion

Asides from the above-mentioned features of both the comprehensive and third-party motor insurance. There are some additional mishaps outside the usual policy contract that the policy contract covers. These are called policy add-ons and the company can make them available to the insured. They include;

  1. Alternative means of transportation till the insured’s car is in good condition
  2. Depreciation waiver
  3. Also, there could be roadside emergency assistance provided for the insured
  4. Car tracking services
  5. Express repairs on damaged vehicles to get the car back on the road as soon as possible

In most cases, each add-on has a cost attached to it which is usually added to the premium. However, in some cases, as determined by the insurer, it is free.

Lastly, you can easily check which car insurance your policy has when in doubt.

You can obtain a comprehensive loan, tailored to your specific needs by using this platform. Basically, it allows you to compare loans from different lenders across Africa, ensuring the best option doesn’t slip through.

Apply for Insurance

Related Posts:

  • Third-Party Insurance in Nigeria
  • Comprehensive Car Insurance in Nigeria
  • How Much is A Comprehensive Car Insurance?
  • 10 Things your comprehensive insurance could cover
  • AXA Mansard Car Insurance - How to apply for a Car insurance…
  • AIICO Car Insurance - How to Purchase Car Insurance in 4…

Filed Under: Car Insurance

Primary Sidebar

To show the importance of Travel Insurance

5 Things to Consider Before Taking Travel Insurance in Nigeria

Are you thinking of taking a travel insurance … Read More about 5 Things to Consider Before Taking Travel Insurance in Nigeria

cost-of-comprehensive-car-insurance

How Much is A Comprehensive Car Insurance?

If you’re looking to buy car insurance or you are … Read More about How Much is A Comprehensive Car Insurance?

Is Term Life Insurance a Good Investment?

There are different kinds of life insurance … Read More about Is Term Life Insurance a Good Investment?

car-insurance-company

Things To Look Out For In A Car Insurance Company

Car insurance is a requirement for every Nigerian … Read More about Things To Look Out For In A Car Insurance Company

Archives

Follow Us Online

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter

Related Posts:

  • Third-Party Insurance in Nigeria
  • Comprehensive Car Insurance in Nigeria
  • How Much is A Comprehensive Car Insurance?
  • 10 Things your comprehensive insurance could cover
  • AXA Mansard Car Insurance - How to apply for a Car insurance…
  • AIICO Car Insurance - How to Purchase Car Insurance in 4…

Footer

  • About GetInsurance
  • Contact Us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2023 Get Insurance. All Rights Reserved.