Car Insurance in Saudi Arabia

I have been driving in Saudi Arabia for more than 5 years. Met minor accident once and a number of 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 to violators. Saudi Arabia traffic control department has put a lot of 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 on 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 the 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.

Disadvantage of Comprehensive Insurance

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

Some people normally with an expensive car or took on a lease will always go for it. Rent a car also have the kind of comprehensive insurance.

Third-Party Car Insurance

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

Benefits of Third Party Insurance

  1. Much cheaper than that of comprehensive insurance like you can get it from 800 SAR but depends on the model and your driving record (if any).

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 the 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 expat 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 are operating in Saudi Arabia. These companies are approved by SAMA – Saudi Arabian Monetary Authority. If you have a bad driving record then you are going to pay 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 a Third Party Insurance here in Saudi Arabia.

Review you Needs

First of all, see what are you looking for. A comprehensive of 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 there are a number of 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 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-annually basis.

Car Model

If you own an Audi or Camry then for sure 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 in your budget. Buy a car not a white elephant!

Documents Required for Insurance

Following documents are must-have for a car insurance

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, just 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.

Read about: Best 5 Car Insurance in Saudi Arabia

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 then I would recommend to go for a comprehensive one unless you are well aware. It’s a 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 Asian are good at driving.

Read More: What is an Iqama in Saudi Arabia?

One Small Request

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