“Comprehensive Car Insurance: Your Car’s Insured, Not You — What All Policyholders Must Know”

 Many Nigerian motorists with comprehensive motor insurance believe they are fully protected whenever they drive any vehicle. However, insurance experts are now warning that this common belief is inaccurate, and could leave unsuspecting drivers exposed to significant financial risk.

According to RexInsure, a leading insurance provider, and Almond Productions, a risk management awareness platform, comprehensive motor insurance only covers the specific vehicle named in the policy, not the individual policyholder.

This means that if a policyholder drives another car, especially one insured under a third-party policy, their own comprehensive cover does not automatically extend to them.

Real-World Example Highlights the Gap

This misunderstanding came to light after a Lagos-based executive, was involved in a minor accident while driving his cousin’s vehicle. Although, the personal car is covered by a comprehensive policy, the vehicle involved in the crash was only insured under a third-party plan. When he attempted to file a claim through his insurer, he was informed that the policy did not apply in this case.

“I was shocked,” the Policyholder told Almond News. “I assumed I was covered simply because I had a comprehensive policy. But the insurance company explained that the policy only applies to my own vehicle, not to any car I happen to drive.”

What the Policy Actually Covers

Speaking to Almond News, an underwriter with RexInsure, clarified the limitations:

“A comprehensive motor insurance policy is vehicle-specific. It covers the insured vehicle against damage, theft, and third-party liabilities, but only for the vehicle listed in the policy schedule. It does not provide personal coverage for the policyholder in other vehicles.”

This means that in the event of an accident involving a borrowed car, a comprehensive policyholder is not protected unless that specific car is listed in their policy or unless additional endorsements have been made.

The Risk with Third-Party Insurance

Third-party motor insurance, the minimum legally required cover in Nigeria, only protects other people and their property. It does not provide any compensation for damage to the insured vehicle or medical expenses for the driver.

“If you’re driving a car with third-party insurance and get into an accident, you may end up footing the bill for repairs and medical care yourself,” said expert in claims advisor.

Avoiding Costly Assumptions

Motorists are advised to take the following steps to avoid unpleasant surprises:

• Review Policy Details Carefully: Ensure the vehicle registration on the insurance document matches the car being driven.
• Consider Add-Ons: Some insurers offer a “Driving Other Cars (DOC)” extension that allows policyholders to drive other vehicles under limited cover. Ask your insurer if this is available and what it includes.
• Don’t Rely on Assumptions: Always verify your coverage before driving a vehicle that is not yours.

Raising Awareness

The Ameh News observed that Almond Productions, through its ongoing #Almond #Awareness campaign, is intensifying efforts to educate motorists on key insurance issues.

“We’re committed to helping Nigerians understand what they’re really buying when they take out an insurance policy,” said insurance presenter at Almond. “Informed drivers are safer and more financially protected.”

Comprehensive insurance remains one of the most robust forms of motor cover, but it is not a blanket protection that follows the driver. Motorists must understand that the coverage is tied to the insured vehicle—not the person. When driving a different vehicle, always double-check the policy—or risk being stranded when it matters most.

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