There isn’t an iota of doubt that life is uncertain and events don’t always follow the path of what we usually plan for. In the wake of unpredictability, there is always a fear of loss that can be physical or monetary. There is certainly no way to wipe off the unforeseen risks and loses completely from our lives but there are some sure shot ways through which one can minimize such risks. Insurance is one such tool that people from all walks of life use to minimize the risks from unforeseen events and accidents. It is in fact the best and the most reliable way to protect one’s property and safeguard one’s monetary position in the wake of contingencies and accidents. Today, one can find plenty of insurance policies that tend to cover risk of loss of one’s property, life and vehicles but out of all these policies, 3^rd party car insurance policy also carries a great importance.

There are various types and kinds of car insurance policies being offered across the globe but in Nigeria, the car insurance policies generally fall in two categories namely 3^rd party car insurance and comprehensive auto insurance policy. This policy serves as a tool of protection for the individual taking it from the losses his car/vehicle might cause to others. For instance, a car driver who rams into another car/vehicle thereby causing damage to the property of other people and their lives might be saved from the tedious task of monetarily compensating the other parties if he has subscribed for the much useful 3^rd party car insurance.

The 3^rd party car insurance can further be classified in 2 categories namely:

• 3^rd party property damage: Compensates other people for the damages done to their tangible property.
• Bodily injury liability: This policy tends to compensate other people for the damages done by the car owner by paying for their medical expenses, suffering and loss of earnings.

In Nigeria, taking up 3^rd party car insurance is compulsory for every car owner which means every car driver in Nigeria has practically safeguarded himself from the loss he might cause to other people while driving his way through roads. However, most of the drivers still don’t get this useful policy cover as a result of which the importance of this insurance policy zeroes down to a mere document. Every car owner in Nigeria must realize that 3^rd party car insurance policy is by far the best and most reliable means of safeguarding oneself from unfortunate incidents that usually show up unannounced. In order to minimize the loses in the wake of accidents, one must opt for a coveted and comprehensive policy having flexible claim procedures with least terms and conditions and that too from a reputed preferably a registered insurance company in Nigeria.