How to refund car insurance in Saudi Arabia?

After selling your car in Saudi Arabia, you can claim a refund from your insurance company for the unused period of the policy. Here is the process of refund through ACIG and Tawuniya insurance;

When to cancel car insurance?

You can cancel your Saudi car insurance and get a refund in the following scenarios;

  1. When you cancel vehicle ownership.
  2. When you transfer car ownership.
  3. When you stop driving a car.
  4. When you get a new car insurance policy in replacement of the current one.


In order to get a refund of the insurance policy, you need to have the following;

  • Iqama Number.
  • Insurance Policy Number.
  • Mobile Number registered with Absher.
  • IBAN.
  • Reason for cancellation.

Cancel the Insurance policy

As soon as the car ownership is transferred, you need to contact your insurance company to cancel the insurance policy immediately by;

  • Calling their helpline.
  • Visiting one of their branches.
  • Logging into your account on their website.

Claim the Refund

As per SAMA instructions, insurance companies have to refund part of the unused insurance policy after selling the car in Saudi Arabia.

In order to claim the refund, the insurance companies normally ask you to access their website and enter your insurance details there.

  • Tawuniya customers can claim a refund through their application.
  • ACIG customers can claim a refund through their website.

The calculation for the refund

The amount of refund is calculated by subtracting the elapsed days from the total policy term (in days) and then dividing the result by the total policy term. Then, multiply the result by the insurance premium, minus administrative fees (a maximum of SAR 25).

For example, if you have paid 1200 and sold your vehicle after 91 days, the calculation of the insurance refund would be the following;

  • Total Premium: 1,200.
  • Days Elapsed: 91 days.
  • Remaining days: 274 days.
  • Administrative fee: SR 25.
  • Refundable amount: 1200/365X274= 900-25 = SR 875.

Payment of the Refund

The amount of the insurance refund would be credited to your bank account within 3 working days.

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