The physical and mental challenges faced by athletes are significant, requiring extensive preparation and the ability to endure extreme discomfort, pain, and risk. Despite these obstacles, a considerable number of Nigerian undergraduate athletes participate in annual sporting events like the Nigerian University Games (NUGA) and the West Africa University Games (WAUG). However, the lack of sports insurance in Nigerian universities poses a major issue. This study examines the role of insurance in motivating and supporting athletes, focusing on the correlation between sports insurance policies and athlete motivation and performance. Injuries are common in sports, and the absence of insurance can lead to significant psychological and physical setbacks for athletes, affecting their motivation and performance. The research highlights the importance of social support from athletic trainers during recovery, which is crucial but often limited. This study involves 40 athletes from Lagos State University, analyzing their perspectives on the impact of sports insurance on their motivation and performance. The findings aim to provide empirical evidence for universities, insurance companies, and policymakers, emphasizing the need for comprehensive insurance policies to support and motivate athletes, thereby enhancing their performance and well-being.