Types of Car Insurance in Saudi Arabia

We know that car insurance rates in Saudi Arabia vary largely based upon different factors and it is not that easy to get the best car insurance in Saudi Arabia. If you are looking for cheap car insurance, you should read this article.

Why Car Insurance is so important in Saudi Arabia?

It is very important in Saudi Arabia to cover your Car with Car insurance. In the below lines, we have explained some reasons why it is very much important to ensure yourself and your Car.

If you want to check the validity of your Car insurance, please click here. Saudi Arabia is one of those places where the accident ratio is very high so you should never ever even think to drive your car without Car insurance.

According to Arab News, 19 people die daily in Saudi Arabia due to a road accident. It means 1 out of every 86 persons die in Saudi Arabia every 5 years due to road accidents in Saudi Arabia.

If you are driving a car without Car insurance, you are actually putting yourself at high risk. This is just mortality rate which is in the cases of severe accidents. The number of normal accidents is at least 20 times more than that. Believe me, it is a blunder to drive a car without Insurance in Saudi Arabia.

Blood Money in case of an Accident

It is an Islamic rule that if someone is died due to your mistake, accidentally or intentionally, you will have to face the consequence which may lead to death.

Now, this point should be noted that even if someone died in a road accident and it was not even your fault, still then you will have to pay the blood money.

According to recent calculations made by the Saudi Government, Blood Money (Diya) is set to be SR 300,000/- for unintentional cases and SR 400,000/- for murder cases. It is actually valued equivalently to 100 camels.

If you don’t pay blood money, you will be hanged to death. Now just think, if you are not insured and more than one person dies in a road accident involving you, how would you arrange money?

Claiming Blood Money for someone who has died in KSA is not an easy task to perform. I have explained it in this article for your ease. “Death Compensation Procedure

Processing case of Road Accident

We have explained the Process in case of Road Accident in this article.

Types of Car Insurance in Saudi Arabia

There are two types of car insurances which are generally used in Saudi Arabia.

3rd party insurance in Saudi Arabia

This insurance is a must for your car. It covers the other party in case of an accident involving your mistake. Nowadays, coverage of insurance companies is enough to provide for blood money of 33 people.

When getting the car insurance for your vehicle, make sure to check how many persons are covered in it. What is the coverage amount?  Coverage amount in case of 3rd party insurance in Saudi Arabia which my friend booked was SR 10 million.

You are going to ensure the other party’s vehicle in case of an accident involving your mistake. It means another party will have to look for the insurance claim.

So, even if you take the insurance policy of some low-rated company for the lower rates, it will be perfect for you. There is no need to contact insurance companies with premium rates like Tuwaniya.

Comprehensive Insurance

In comprehensive insurance, both parties are covered in case of an accident. If your vehicle is damaged in case of an accident involving your fault, your insurance company will provide you with all the repair and maintenance.

People purchasing new cars should take comprehensive insurance. Normally insurance companies don’t insure your car for comprehensive insurance if it is more than 10 years old.

Since you are going to ensure your vehicle in case of an accident which was not the case with 3rd party insurance, it means you will have to go through all the processes of claiming the money. Now you should look for a well-reputed company since your personal stake is involved.

Even if you have to pay some more money, you should pay it for some premium insurance companies.

Documents Required for Insurance

Following documents are required to be submitted to the insurance company if you want to ensure your vehicle in Saudi Arabia.

  • Valid passport
  • Iqama (residence permit)
  • A valid driving license
  • Istimara (vehicle registration)
  • Proof of vehicle ownership
  • Proof of any no-claims discount

Does insurance fix your car if you are at fault?

If you have a third-party insurance, the insurance company will not fix the car for causing the accident by mistake. They will fix the car of the other party. However, in case of comprehensive insurance, they will fix the cars of both parties.

How much will my insurance go up with an at fault accident?

At least third parties are covered by a minimum of SR 10 million claim. It means that in any kind of car insurance in Saudi Arabia, the minimum coverage limit is SR 10 million.

For the latest updates, you can join our WhatsApp group.

Steve has been living in Saudi Arabia since 2013 and writing about Saudi rules, regulations, guides, and procedures since then.