Comprehensive vs Third Party: Which Motor Insurance Should You Buy

Understanding the distinction between Comprehensive Car Insurance and Third Party Car Insurance will help you determine the best insurance for your vehicle as well as protect you from costly fines, damages and losses that may result from accidents, collisions, floods, theft, etc.

Benefits of Purchasing a Comprehensive Motor Insurance

1. Covers for Damages to Your Car 

The main advantage of acquiring comprehensive auto insurance is that it guards your vehicle against any unlucky losses and damages caused by collisions, fire, accidents, etc.

2. Guards Your Finances Against Third-Party Liabilities

Obeying the law and protecting oneself from financial loss in the event of third-party property damage are two of the main reasons people purchase any type of auto insurance. What’s fantastic about comprehensive auto insurance is that, in addition to safeguarding you and your vehicle it also shields you from financial loss if you cause damage to a third party’s property or bodily injury

3. Allows Access to Add-ons for Better Coverage

Most people prefer comprehensive car insurance. This is because you can customize the policy to your liking by choosing add-ons to expand the types of coverage your car receives.

We’ve customized some add-ons at extra cost:

  • Third Party property liability
  • Excess buy back
  • Flood extension
  • Passenger liability
  • Flexible payment plan

4. Cost Effective

Comprehensive auto insurance premiums are higher than third-party auto insurance, but the coverage and benefits you get with comprehensive auto insurance are much higher and can save you a lot of money, making it cost-effective.

5. Protects Your Car Against Natural Disasters

Nature’s many wraths cannot be controlled. But having comprehensive car insurance can at least provide compensation for your car in case of damage. Even if your car is damaged by floods, erosion, earthquakes, etc., you will be compensated. 

6. Car Theft Compensation

Car theft is the worst! In minutes, you could lose one of your most prized possessions. Luckily, comprehensive car insurance can help in this case by covering the same loss.

Exclusions of Comprehensive Motor insurance   

1. Driving without a valid driver’s license 

By law, we cannot represent you if you drive in the front passenger seat with a study driver’s license without a valid driver’s license. you can’t.  

2. Contributory Negligence  

Simply put, don’t do what you shouldn’t. For example, if there is a flood in your city, don’t risk driving out. Please listen to the manufacturer’s manual as such negligence may not be covered by comprehensive insurance.  

3. Unpurchased Add-ons  

Of course. If you did not purchase certain add-ons when you purchased Comprehensive insurance, you cannot claim that benefit!   

Benefits of Third-Party Insurance

Unless you are looking for comprehensive auto insurance, third-party auto insurance is the most basic and legal form of auto insurance you need. As the name suggests, this only protects you against damages and losses caused to third parties and does not cover your own damages. 

1. Third Party Liability Insurance Coverage  

The main purpose of Third-party insurance is to protect you from loss or damage caused by your vehicle to third parties. This includes, for example, situations in which a car hits a person or property. In such cases, 3rd party insurance will cover the damage caused.

2. Helps You Drive Legally on Nigerian Roads  

Under the Motor Vehicles Act, all vehicles must have at least motor vehicle insurance to legally drive on the roads of Nigeria.

3. Protect Your Wallet from Fines

At a minimum, you are required by law to have compulsory automobile liability insurance, to avoid paying a fine. So, motor vehicle liability insurance can protect your pocket from traffic fines.

Exclusions in a Third-Party Car Insurance

1. Self-Inflicted Accident  

As the name suggests, third party auto insurance covers only third party-related liabilities, and damage to one’s privately owned vehicle is not covered by this insurance. 

2. Drunk Driving or No Driver’s License  

3rd party auto Insurance does not cover claims against third parties if you are found driving under the influence of alcohol or without a valid driver’s license. 

3. Driving With Learners Permit

If you hold a learner’s permit and drive without a passenger that holds a valid driver’s license in the front seat, then your claim won’t be covered.

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Read: Everything You Need to Know About Goods-In-Transit Insurance

4 thoughts on “Comprehensive vs Third Party: Which Motor Insurance Should You Buy”

  1. Avoiding heavy fines, repairs, and losses due to an accident is much more manageable if you have adequate Auto Insurance, which this article will help you find. I could quickly and easily get auto insurance, thanks to your post. 

  2. Commercial auto insurance can cover a wide range of vehicle types (trucks, automobiles), drivers, and motorized equipment. It covers bodily injury liability and property damage when driving a work vehicle, as well as medical payments or Personal Injury Protection (PIP) for the policyholder’s driver and passengers.

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