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Like most countries around the world, the Kingdom of Saudi Arabia seeks to secure the rights of its citizens by building strong official foundations such as car insurance. The following article will discuss the benefits of car insurance in KSA, as well as the cases that are not covered by the insurance according to its type.
Car Insurance Terms in Saudi Arabia
- Pay the necessary fees for insurance renewal
- Pay all traffic violations
- Valid car insurance
- Valid car inspection (If expired, it must be renewed before insurance renewal)
| Types of Car Insurance in KSA |
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What is a Third-party Insurance?
A compulsory insurance that covers the costs, financial compensation, and legal claims to the third party when an accident occurs.
Third-party Insurance Advantages
- Covering the damage costs of the third party’s property, such as cars
- Covering the third party's injury costs which resulted from the accident, it may also include compensation in the event of death or disability
- Coverage for legal protection costs in case the third party files a lawsuit against the car driver (the insured)
- Not as expensive as comprehensive insurance
- It’s mandatory, which preserves the rights of individuals in KSA
Cases that Third-party Insurance doesn’t Cover
- Accidents resulting from natural disasters, such as floods, rain, etc
- Accidents that take place outside of Saudi Arabia's borders
Third-party Insurance Price in KSA
The price of this insurance differs according to various factors, and people will find that the price increases in these situations:
- Car type and year of manufacture: New cars with a high price tag
- Engine Power: Cars with high horsepower numbers
- Driver's age and health condition: Older drivers or those with a medical history of accidents
- Area of residence: Living in areas with high accident rates
Generally speaking, the annual price of third-party car insurance in KSA ranges from 600 to 1,500 SAR, but to know the exact prices, you can contact your insurance company.
Notes:
- Individuals that keep their records clear of violations for a long time might get discounts from the insurance company ranging from 10 to 40%.
- Third-party car insurance companies set a coverage limit, which can’t be exceeded regardless of the damage value
What is a Comprehensive Insurance?
It’s an optional insurance that provides comprehensive coverage for various cases. Unlike the third-party insurance, which covers the costs of the third party’s damage or injury, comprehensive insurance covers the costs for both parties (Insured & third party). This insurance may also include some cases like theft, natural disasters, etc.
Comprehensive Insurance Advantages
- Full coverage for the car damage costs, whether it was caused by a collision with another car or an immovable object
- Owner compensation if the car was stolen or set on fire
- Coverage for damages caused by natural disasters like floods, storms or earthquakes
- Coverage for costs of the third party’s damages
- Providing emergency services and roadside assistance, such as towing
- Providing a courtesy car while the insured’s vehicle is being serviced
- Coverage of the car damage costs caused by riots
* Note: These advantages will vary according to the insurance company and its policy terms
Cases that Comprehensive Insurance doesn’t Cover
- Accidents resulting from driving under the influence of alcohol or drugs
- If the accident occurred and the driver's license was invalid
- Major modifications or tuning to the car without informing the insurance company
- Damages resulting from improper vehicle maintenance
- Damages resulting from unethical or illegal use of the vehicle
- Damages resulting from wars
- Damages resulting from natural wear and tear that occur over time
- Damages resulting from racing and motorsports activities
Comprehensive Insurance Price in KSA
The price fluctuates according to a number of factors, and the annual subscription will increase in the following situations:
- Car type and year of manufacture: New cars with expensive price tag
- Area of residence: High insurance subscriptions for people residing in big cities
- Accident history: Higher insurance subscriptions for cars with previous accidents
In general, the price of the comprehensive insurance ranges between 1,500 and 8,000 SAR, and you can do a thorough research on each insurance company before you get your best annual subscription.
| Criteria | Comprehensive Insurance | Third Party Insurance |
| Obligation | Optional | Mandatory |
| Coverage |
Comprehensive (Vehicle damage, third party, driver, passengers, and natural disasters) |
Limited (Third parties damages only) |
| Cost | High | Low |
| Additional Benefits |
|
Does not include any additional benefits |
Car Insurance Violation in Saudi Arabia
In order to enhance safety levels on all roads in KSA, the General Traffic Department started automating the surveillance of car insurance violations in the last quarter of 2023 (for car’s with invalid insurance).
The fine for not having a valid vehicle insurance is 100 SAR, and it may reach 150. These fines will encourage citizens to make the roads a safer place.
Foreign Cars Insurance
The foreign cars insurance is now managed by Najm Insurance Services Company in Saudi Arabia, which is leading a smart and effective system called “Manafith”, moreover, this system handles the insurance of foreign vehicles arriving or transiting through the Kingdom's many border crossings.
The list below shows the insurance cost for private vehicles entering in the Kingdom according to the period of their stay:
- One week: 120 SAR
- Two weeks: 200 SAR
- One month: 250 SAR
- 3 months: 400 SAR
- 6 months: 900 SAR
- One year: 1200 SAR
In conclusion, the article above discussed the types of car insurance in KSA, as well as the advantages and disadvantages of each type, not to mention the violations and foreign cars insurance.
