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?

If you are driving a car without Car insurance, you are actually putting yourself at high risk. 

It is an Islamic rule that if someone is died due to your mistake, accidentally or intentionally, 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 accident cases. It is actually valued equivalently to 100 camels.

If you don’t pay blood money, you will spend the rest of your life behind the bars. 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?

Types of Car Insurance in Saudi Arabia

There are two types of car insurance that are generally used in Saudi Arabia.

3rd party insurance in Saudi Arabia

In third-party insurance, you insure the other party of the car for any loss or damage caused due to your mistake. In case of an accident, if it is your mistake, your insurance company will pay the other party for the accident.

The third-party insurance covers a sum of up to SR 10 million. You can compare the insurance quotes and select the cheapest one. There is no need for a premium insurance company as the claim will be paid to the aggrieved party, not to you.

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.

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