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Car insurance in Saudi Arabia

Car insurance in Saudi Arabia

Car insurance in Saudi Arabia

I have been driving in Saudi Arabia for more than 5 years. Found a minor accident and many nearby leaks. I have to say that getting valid car insurance is a "life-saving decision." Today, it is illegal to drive without valid insurance. The insurance can be comprehensive or third party insurance. We will see the difference in the details.

Driving in Saudi Arabia is not that easy, but the rules are now changing and heavy fines are being imposed on violators. The Traffic Control Department of the Kingdom of Saudi Arabia has installed several cameras to monitor the red signal and excessive speeds. Both are major causes of accidents anywhere according to the Pareto rule (80/20). The other main causes are illegal changes and reckless behavior.

Types of car insurance

There are two types of car insurance in the Kingdom of Saudi Arabia;

  1. Comprehensive car insurance
  2. Third party car insurance

Comprehensive car insurance

It is also called "comprehensive insurance". This covers the full damage even if you mess up. Both insurance methods also use the term.

Comprehensive insurance benefits

  1. You can claim accidents in those that are your fault.
  2. If fault in the accident cannot be concluded, you can still claim your insurance company.
  3. You can claim any hit and run status.
  4. Peace of mind and without the need to pay expensive repairs.

Disadvantages of comprehensive insurance

Yes, the initial cost of comprehensive insurance is much higher than the cost of third party auto insurance. But in a longer scenario, it will help you fight vehicle theft and give you peace of mind as a car owner.

Usually with an expensive car or rental agreement, some people will always choose it. Renting a car also has some type of comprehensive insurance.

Third party car insurance

It is also called one-way insurance, which means that if you make a mistake you must repair your car yourself, although the other cars are the responsibility of this third party.

Benefits of third party insurance

  • Much cheaper than comprehensive insurance, as you can get for 800 Saudi Riyals, but it depends on the model and your driving history (if any).

Disadvantages of third party insurance

  1. You cannot claim accident compensation on these, so it is your fault to keep your car but the other car that will be covered by this insurance.
  2. If fault for the accident cannot be resolved, you cannot claim your insurance company.
  3. You cannot claim any hit and run case from the insurance company.
  4. You must be very careful when driving.

Generally, people with normal cars go with third party insurance. Generally, expats try to save a few dollars.

Factors Affecting car Insurance

When looking for cheaper car insurance, you should consider a few factors;

  • You are the driving record
  • Your car model
  • The policy you are looking for

In Saudi Arabia, all records are online and can be accessed by companies. There are around 35 prominent car insurance companies operating in the Kingdom of Saudi Arabia. These companies are accredited by the Saudi Arabian Monetary Agency - Saudi Arabian Monetary Agency. If you have a bad driving record, there will be more rials than others with a clean record

The car model and the coverage you get will also affect the price of the insurance. Vintage cars have an additional cost.


Get car insurance in Saudi Arabia

I hope you are well aware of the factors when considering the cost of insurance in Saudi Arabia. Now, let's dig deeper to discover ways to achieve this.

Let's see how to get third party insurance here in Saudi Arabia.

Check what you need

First of all, see what you are looking for: comprehensive car insurance. But one thing is for sure: you must have some policy or coverage to drive your car here in Saudi Arabia.

Compare company rates

As we already know, many companies in the Kingdom of Saudi Arabia operate under the umbrella of the Saudi Arabian Monetary Agency, but the most prominent are;

  • ALRajhi Takaful
  • Tawaniya
  • Malath insurance at Abdul Latif Jameel
  • Saudi Unit Insurance – WALAA