Car Insurance in Saudi Arabia

I have been driving in Saudi Arabia for more than 5 years. Met minor accident once and several close escapes. I must say to have valid car insurance is a ‘life-saving decision.’ Nowadays, it is illegal to drive a car if you don’t have any valid insurance.  Insurance could be a comprehensive one or any third-party insurance. We will see the difference in detail.

Read More: How to get Saudi Driving License

Driving in Saudi Arabia is not that easy, but now rules are changing, and hefty fines are imposed on violators. Saudi Arabia’s traffic control department has put many cameras to control Red Signal & and overspeeding. These both are the major causes of an accident anywhere as per the Pareto Rule (80/20). Other major causes are illegal U-turn and reckless behavior.

Car Insurance Types

There are two types of car insurance in Saudi Arabia;

1. Comprehensive Car Insurance
2. Third-Party Car Insurance

Comprehensive Car Insurance

It is also called ‘Full Insurance.’ This covers full damage even if you are at fault. Both ways insurance they use the term also.

Benefits of Comprehensive Insurance

1. You can claim for accidents in those it is your fault.
2. If a fault on accident cannot be concluded, then you still can claim from your insurer.
3. You can claim any hit and run case.
4. Peace of mind and no need to pay expensive repairs.

The disadvantage of Comprehensive Insurance

Yes, the initial cost of comprehensive insurance is much more than that of third-party car insurance. But in a longer scenario, it will help you against car theft and give you peace of mind as a car owner.

Normally with an expensive car or took on a lease, some people will always go for it. Rent a car also have a kind of comprehensive insurance.

Third-Party Car Insurance

It is also called one-way insurance, which means that if you are at fault, you have to repair your car by yourself, although other cars/s this third party will bear.

Benefits of Third Party Insurance

1. It is much cheaper than comprehensive insurance, like you can get it from 800 SAR, but it depends on the model and your driving record (if any).

The disadvantage of Third Party Insurance

1. You cannot claim for accidents in those it is your fault for your own car maintenance but the other car this insurance will cover.
2. If a fault on accident cannot be concluded, then you cannot claim from your insurer.
3. You cannot claim any hit-and-run case from the insurer.
4. You must be extra cautious while driving.

People with normal cars normally go with third-party insurance. Normally, the expatriates are trying to save some bucks.

Factors Affecting the Car Insurance

When you are looking for car insurance cheaper then you have to look at the few factors;

• You Driving Record
• Model of your Car
• The policy you are looking for

In Saudi Arabia, every record is online, and companies have access to it. There are around 35 prominent car insurance companies operating in Saudi Arabia. These companies are approved by SAMA – Saudi Arabian Monetary Authority. If you have a bad driving record, there will extra rials than others with a clean record.

The car model and cover you are going to have will also affect the insurance price. Old Model cars will have extra charges.

Get a Car Insurance in Saudi Arabia

I hope you are well aware of the factors while considering the insurance cost in Saudi Arabia. Now, let’s dig in more to find out the ways to get it done.

Let see how to get Third Party Insurance here in Saudi Arabia.

Review you Needs

First of all, see what you are looking for—comprehensive third-party car insurance. But one thing is for sure you must have any policy or cover to drive your car here in KSA.

Compare Company Prices

As we already know, several companies are operating in KSA under SAMA, but the prominent are;

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

If you know more, please comment below.

Visit the above website through the internet, get a quotation online, or by calling them. You can easily communicate in English nowadays. Also, you can visit the Insurance Outlet Agents. Now it’s up to your research that what quotation you will get. Every company may offer you less or high, but there is a limit set by SAMA already. The agent can check your car on the spot and may offer you some concession in his domain. Make sure policies for the younger driver may be higher than the mid-age people 😉 – Drifters.

Note: Insurance policies are strictly on an annual basis as per SAMA instruction. You cannot get on a Monthly or bi-annual basis.

Car Model

If you own an Audi or Camry, then for sure, the insurance price will be higher for Audi. A luxury car will always have a higher insurance cost everywhere, not only in KSA.

While buying a car for the first time, make sure to consider all the factors to stay within your budget. Buy a car, not a white elephant!

Documents Required for Insurance

The following documents are a must-have for a car insurance

• Valid Iqama or Bataka
• Valid Driving License
• Valid Car Fahs
• Adress by Saudi Post

Get all these documents ready and provide the agent when asked. This is a one-time process; next is the renewal that can be done online. By sometimes, you get an Insurance paper, and sometimes it is a card. Whatever you get, keep it with you or put it in your car securely.

By the way, which insurance you have or decided to have – please comment below.

Are you looking for companies to insure your car in Saudi Arabia?

You have come to the right place!

Kingdom of Saudi Arabia has established the law of insuring a car even before finalizing the purchase.

Comprehensive car insurance is not required.

Read More: Driving License in Saudi Arabia

However, third-party insurance is compulsory. This is for the compensation of damages or injury done to the third party or the other vehicle involved in an accident with you.

We have come up with a list of the best car insurance companies in Saudi Arabia for you!

You may be interested in Car Insurance in the UAE.

1. Tawuniya

One of the leading insurance companies in Saudi Arabia is the Company for Cooperative Insurance (Tawuniya).

It is based in Riyadh. Tawuniya was the first licensed insurance company in KSA.

The insurance program for third-party liability is called SANAD. It starts from 800 to 1200 Saudi Riyals and the maximum coverage of SR 10,000,000.

The benefits of the SANAD program are:

• Drivers of 21 years can be accommodated.
• Furnished with an Insurance Card
• Equipped with Bail Bond certified by the Traffic Police
• Can include damages to a car with cover up to SR 20,000

The program for comprehensive car insurance is known as Al Shamel. It starts from SR 2500 and lasts till SR 10,000,000.

The advantages of the Al Shamel program are:

• Nationwide set-up of agency workshops for damaged insured cars
• Cover for loss of part or whole car due to theft or fire
• Cover for car towing
• Drivers of less than 25 years with a licensed driving card can opt for this

Link: www.tawuniya.com.sa

2. AXA Cooperative Insurance Company

AXA is generally ranked as the 4th largest insurance company in KSA.

It has offices in Riyadh, Dammam, Al Khobar, and Jeddah.

It is well known for an instant and broad range of cover proposals regarding insurance with having over 300 trained employees.

AXA offers both the services of Motor Perfect and Third-Party covers. You can either opt for comprehensive car insurance or legal liability regarding damages induced to other individuals.

The main covers provided by AXA company considering car insurance services are:

• Loss or damage to valuable personal belongings placed on the insured vehicle (up to Up to SAR 2,000/-)
• Loss or damage to the insured car
• Medical bills are covered for the person(s) inside the insured vehicle during an accident (up to Up to SAR 5,000/-)
• Compensation to be paid to the third party for injury, death, and property damage in case of an accident (liability up to SAR 5,000,000/-)

The further advantages provided by AXA company for car insurance services are:

• Recovery of any crash or break down of the road of the car.
• During the time of the covered accident, the facility of hiring a vehicle is available.
• Repair of cars at the manufacturer’s approved workshops for up to two teeny natural disasters wrecked automobiles.
• Compensation for the driver and passengers inside the car suffering from considerable injuries or in case of death

To ensure your car at AXA, you must be 25 years old, and the automobile should be registered less than ten years ago. The user of the vehicle should have the registration of the car in his name.

Link: www.axa-cooperative.com

3. The Mediterranean and Gulf Cooperative Insurance (MEDGULF)

It is one of the most popular insurance companies in the KSA. MEDGULF provides quality and credible car insurance at an affordable price.

You can get insured online as well as submit insurance forms manually at MEDGULF offices.

The services for third-party insurance by MEDGULF are:

• The sanction for physical injury to the third party persons
• Retribution for damage by accident to the motor of the third party
• In case of a crash, support would be given to personal drivers and passengers or third party people
• Cover for one’s damage
• Cover for the liability of the third party in case of an accident

The comprehensive car insurance services available by MEDGULF are:

• Physical reimbursement will be allotted if the death or disability of the driver, passengers, or a third party takes place after an accident
• Cover for damage or loss of insured motor automobile and the third party vehicle
• The company would cover the expenditure on hospital treatments and medication of the driver, passengers, or third party

MEDGULF also invests in assistance of roadside issues such as

• Replacement of tire(s)
• Fuel delivery
• Taxi and Locksmith services
• Towing and battery charging

Link: www.medgulf.com.sa

4. Malath Cooperative Insurance Co.

Malath Cooperative Insurance & Reinsurance Co. is the second insurance company that was licensed in Saudi Arabia.

This company provides multiple insurance services within the local Saudi market with thorough professionalism and dependability.

The Comprehensive Car Insurance benefits provided by Malath include:

• Provides liability up to SR 10 million for the third party and personal loss and damages, whether vehicular or physical
• Stipend for licensed drivers of less than 21 years
• Compensation for the alternative motor car rental
• Payment of the car in case of theft, fire, and damage by natural hazard (lightning, earthquake, landslide, etc.)
• Coverage for personal or third party physical and vehicular damage

Third-party car insurance services include:

• Provides compensation of up to SR 10 million in case of physical damage to the third party
• Coverage of blood money and medical charges
• Payment of third-party liability in case of bodily injury or automobile damage.
• Additional coverage of incensed drivers of under 21 years is provided by Malath Insurance company.

Link: www.malath.com.sa

5. Allianz Saudi Francis

The Saudi Fransi Cooperative Insurance Company (Allianz) provides conclusive car insurance to both individual and corporate clients since 2007.

Allianz offers a basic cover of the property loss and physical harm both inside and outside the car.

The Allianz insurance company maintains comprehensive car insurance. It provides coverage of the insured automobile damaged by:

• Theft
• Explosion fire
• Lightning fire
• Accidental crash
• Damaged during vehicular transport by rail or road

Moreover, Allianz extends additional coverage services regarding car insurance such as:

• Replacement of vehicle
• Personal accident of driver and passenger
• Compensation of loss by natural disasters

Link: www.allianzsf.com

Wrap Up

One thing is for sure that that you need minimum third-party insurance to drive legally in KSA. Do a complete analysis, and also, you must have trust in your driving. If you are a new one here, I would recommend going for a comprehensive one unless you know. It’s right-hand driving here, and you are from a left-handed country like Asia, then consider twice if you are going for a third party. I must admit Asians are good at driving.

Read More: What is an Iqama in Saudi Arabia?

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