Is car insurance mandatory in Saudi Arabia?

Yes, car insurance is legally required for all vehicles in Saudi Arabia. The Traffic Law mandates minimum third-party liability coverage for every registered vehicle. Driving without active insurance can result in fines, vehicle impoundment, and complications with Istimara (vehicle registration) renewal. SAMA (Saudi Central Bank) regulates insurance companies and sets minimum coverage requirements at 10,000,000 SAR for third-party liability.

What is the minimum car insurance required by law?

Saudi law requires third-party liability insurance as the minimum coverage. This must cover at least 10,000,000 SAR in damages to third parties including property damage, bodily injury, and medical expenses. Third-party insurance does not cover damage to your own vehicle. All SAMA-licensed insurance providers offer policies meeting this minimum requirement.

How much does car insurance cost in Saudi Arabia?

Car insurance costs vary significantly based on multiple factors including vehicle type, driver age, coverage level, and claims history. Third-party insurance typically costs less, while comprehensive coverage costs more. Your specific premium depends on your car's make, model, age, and value; your driving experience and record; the coverage type you choose; any optional add-ons you include; and your location in Saudi Arabia. Request quotes from multiple providers as rates differ substantially between companies.

What is the difference between takaful and conventional car insurance?

Takaful operates under Islamic principles (Shariah-compliant), while conventional insurance follows standard insurance models. In takaful, policyholders contribute to a collective pool that pays claims. Any surplus may be shared among members or donated to charity. Profits do not come from investing premiums in interest-bearing instruments. Companies like Al Rajhi Takaful and AlJazira Takaful offer takaful motor insurance. Conventional insurance involves purchasing protection directly from the insurance company with premiums calculated based on risk assessment. Both types must comply with SAMA regulations and offer equivalent protection levels.

Can I drive my car immediately after buying insurance?

Yes, most insurance policies activate immediately upon payment confirmation or at a specified start date you choose. You receive a digital policy certificate via email that serves as proof of insurance. Keep this on your phone for traffic stops. However, ensure your policy shows as active in the Najm system before driving. Most insurers register policies with Najm within hours of activation.

What does third-party car insurance cover?

Third-party insurance covers damage and injury you cause to others. This includes: damage to other vehicles in accidents where you're at fault; property damage you cause (fences, buildings, road infrastructure); medical expenses and compensation for injured third parties; legal defense costs if someone sues you; and liability up to 10,000,000 SAR per incident. Third-party insurance does NOT cover damage to your own vehicle, theft of your car, fire or natural disaster damage to your vehicle, or your own medical expenses (though some insurers offer driver injury as an add-on).

What does comprehensive car insurance cover in Saudi Arabia?

Comprehensive insurance includes everything in third-party coverage plus protection for your own vehicle. This covers: collision damage to your vehicle regardless of fault; single-vehicle accidents (hitting poles, barriers, or rolling over); theft of your vehicle; fire damage; natural disasters including floods, sandstorms, and hail; and vandalism to your vehicle. Many comprehensive policies also offer optional add-ons for driver/passenger injury coverage, roadside assistance, temporary replacement vehicles, GCC country coverage, and windscreen replacement.

How do I file a claim after an accident?

Use the Najm system to report accidents. For minor accidents (under 10,000 SAR damage), use the Najm mobile app to file a report with photos and both drivers' information. For major accidents or those involving injuries, call Najm at 920000560 for officer attendance. After receiving your Najm report number, contact your insurance company within 24 hours through their hotline, website, or app. Submit required documents including the Najm report, your license, vehicle registration, and photos. Your insurer will direct you to approved repair shops and process your claim.

What is a deductible and how does it work?

A deductible is the amount you pay out of pocket before insurance coverage applies. For example, if your repair costs 5,000 SAR and your deductible is 1,000 SAR, you pay 1,000 SAR and the insurer pays 4,000 SAR. Higher deductibles reduce your premium but increase your out-of-pocket costs when filing claims. Lower deductibles increase your premium but reduce your payment when accidents occur. Common deductibles in Saudi Arabia range from 500-2,000 SAR. Deductibles apply to comprehensive coverage for damage to your own vehicle. Third-party claims typically have no deductible since they involve paying others for damage you caused.

How long does the claims process take?

Processing times vary by claim type. Minor third-party claims typically process in 5-10 business days. Comprehensive claims for vehicle repair usually take 3-7 business days for approval, then 7-30 days for actual repairs depending on damage extent. Theft claims require 30-60 days waiting period for recovery attempts, then 45-90 days total processing. Total loss claims (when repair costs exceed vehicle value) take 14-30 days for assessment and payment. Delays often occur due to incomplete documentation, disputes about fault determination, or complications requiring additional investigation. Prompt reporting and complete document submission speed up the process significantly.

What should I do if my claim is denied?

First, request a detailed written explanation from your insurer stating the specific reason for denial. Review your policy terms to verify whether the denial aligns with exclusions or conditions. Gather any additional evidence that supports your claim. File a formal written appeal with your insurance company including all supporting documentation. If the insurer maintains their denial and you believe it's unjust, contact SAMA's consumer protection department to file a complaint. SAMA investigates insurance disputes and can compel companies to pay legitimate claims. For high-value disputed claims, consider consulting with a legal professional specializing in insurance law.

Which insurance company is best for car insurance in Saudi Arabia?

The "best" insurer depends on your specific needs. For Shariah-compliant coverage, Al Rajhi Takaful and AlJazira Takaful offer comprehensive takaful options. For extensive optional add-ons and customization, Arabian Shield and Gulf General Insurance provide flexibility. For premium coverage with benefits included rather than as add-ons, ACIG Plus includes driver injury, emergency medical expenses, and temporary replacement vehicles. For straightforward coverage without complexity, Tawuniya serves as one of Saudi Arabia's largest providers. Compare quotes from multiple companies focusing on coverage features, claim settlement reputation, and customer service quality rather than price alone.

How do I switch car insurance providers?

Switching providers is straightforward. Wait until your current policy nears expiration (within 30 days before renewal date). Obtain quotes from new providers you're considering. Choose your new provider and purchase a policy with a start date matching your current policy's end date. Ensure no coverage gap exists between policies. Your new insurer will register the policy with Najm automatically. Update your vehicle registration (Istimara) with the new insurance information during your next renewal. If you have no claims, many insurers offer no-claims bonuses when switching. Don't cancel your existing policy early as this may result in penalties or coverage gaps.

Can I cancel my car insurance policy before it expires?

Most policies allow cancellation, but terms vary by provider. Review your policy documents for specific cancellation terms and potential penalties. Early cancellation typically results in losing a portion of your paid premium. Some insurers charge cancellation fees or may not refund much of your premium. If you sell your vehicle, you're generally entitled to a prorated refund for unused coverage. Contact your insurer to initiate cancellation and inquire about refund calculations. Ensure you have new coverage arranged if you still own a vehicle, as driving without insurance is illegal.

Do I need special insurance if I drive to GCC countries?

Standard Saudi policies don't automatically cover driving in other GCC countries (UAE, Kuwait, Bahrain, Qatar, Oman). You need GCC extension coverage for cross-border protection. Walaa Cooperative Insurance includes GCC coverage as standard in their third-party policies. Most other insurers offer GCC coverage as an optional add-on. If you frequently drive to neighboring countries, include this coverage in your policy. For occasional trips (once or twice yearly), check if the additional premium justifies the coverage. Without GCC coverage, you may need to purchase separate insurance at the border.

What happens if I drive without insurance in Saudi Arabia?

Driving without insurance violates Saudi law and results in serious consequences including fines that can reach several thousand SAR, vehicle impoundment until you obtain insurance, prevention of Istimara (registration) renewal, and potential liability for full accident costs if you cause damage or injuries. Police routinely check insurance status during traffic stops. The Najm system tracks insurance coverage, making it difficult to evade detection. Always maintain active insurance before driving any vehicle.

How does car insurance work for new drivers in Saudi Arabia?

New drivers typically face higher premiums due to increased risk. Insurance companies consider driver age (under 25 pays more), years of driving experience (less than 2 years costs more), license type (new Saudi license vs. transferred international license), and claims history (clean record helps despite being new). To get better rates as a new driver: take defensive driving courses that some insurers recognize for discounts, maintain a clean driving record from day one, consider adding yourself to a family member's policy as an additional driver if possible, choose third-party coverage initially to save money, and shop around as rates vary significantly between providers for new drivers.

Can expats get car insurance with an international driving license?

Yes, most Saudi insurance companies accept international driving licenses (IDL) for expats. However, coverage may come with certain conditions. Some insurers require you to have held your license for a minimum period (6 months to 2 years). Premium costs may be higher for international license holders compared to Saudi licenses. You typically need valid Iqama (residency permit) and the vehicle registered in your name. Some insurers require you to obtain a Saudi license within a specified timeframe (3-12 months) of policy purchase. Gulf General Insurance and other providers offer policies specifically designed for expats. Check specific insurer requirements as they vary.

Does car insurance cover rental vehicles?

Standard personal car insurance does NOT cover rental vehicles. Rental cars typically come with insurance through the rental company. Check what coverage the rental company provides (usually basic third-party liability). Consider purchasing additional coverage from the rental company if their basic coverage is minimal. Some credit cards offer rental car insurance when you use them to pay for rentals. Specialized rental vehicle insurance exists for rental car businesses, which is different from individual policies. If you need insurance for a car you're renting long-term, inquire about temporary coverage from insurance providers.

What insurance do I need for a financed or leased car?

Banks and finance companies typically require comprehensive insurance when you finance a vehicle. This protects their interest as lien holders. Required coverage usually includes comprehensive coverage (not just third-party), theft protection, natural disaster coverage, minimum policy value matching the outstanding loan amount, and the finance company listed as loss payee (they get paid first if the car is totaled or stolen). Check your financing contract for specific insurance requirements. Your premium may be higher due to the comprehensive coverage requirement. This protection benefits you as well since you're paying for a vehicle you don't fully own yet.

Can I insure a car that's registered in someone else's name?

Generally, insurance policies require the policyholder to be the registered owner listed on the Istimara (vehicle registration). Some exceptions exist: family members may be able to add coverage for vehicles owned by other family members, companies can insure fleet vehicles not registered individually to employees, and some insurers allow coverage if you have written permission from the registered owner. However, claims processing becomes more complicated when the insurer and registered owner don't match. The best practice is to ensure the insurance policyholder matches the registered owner. If you regularly drive someone else's car, consider adding yourself as an additional driver on their policy.

How does insurance work for older or classic cars?

Older vehicles face different insurance considerations. Most comprehensive insurance policies don't cover cars over 10-15 years old. Third-party coverage remains available regardless of vehicle age. For classic or valuable older cars, specialized classic car insurance may be available from select providers. Standard policies base value on depreciated market value, which may not reflect a classic car's true worth. Consider agreed value coverage if available for true classics where you and the insurer agree on the car's value upfront. Premiums for third-party coverage on older cars are typically lower due to lower risk assessment.

What is the Najm system and how does it work?

Najm (Najm for Insurance Services) is Saudi Arabia's unified accident reporting and documentation system. All insurance companies use Najm reports for claim processing. The system works by documenting accidents through trained officers or mobile app reporting, determining fault based on evidence and traffic law, uploading reports directly to insurance companies, providing standardized assessment across all insurers, and reducing fraud through centralized documentation. Download the Najm mobile app from your device's app store. For minor accidents, use the app to submit reports with photos without waiting for an officer. For major accidents, call 920000560 for officer attendance. Najm reports are required for virtually all insurance claims in Saudi Arabia.

How do no-claims bonuses work in Saudi Arabia?

No-claims bonuses reward drivers who don't file claims during their policy period. Some insurers offer premium discounts (typically 10-30%) when you renew without having filed claims. The discount may increase with each claim-free year up to a maximum (often 3-5 years). You lose the bonus if you file an at-fault claim during the year. Some insurers protect your bonus for one claim every few years. Not all Saudi insurers offer formal no-claims bonus programs. When comparing policies, ask whether no-claims discounts are available and how they're calculated. Clean driving history benefits you even without formal bonus programs, as insurers consider claims history in pricing.

Can I pay my car insurance monthly instead of annually?

Most Saudi insurance providers allow monthly payment plans as an alternative to annual lump-sum payment. However, monthly plans typically cost 5-10% more than paying annually upfront. The insurer essentially finances your premium with built-in interest or fees. If you choose monthly payments, ensure automatic payment setup to avoid late fees or coverage cancellation. Some insurers require credit card authorization for automatic monthly deductions. For better value, pay annually if your budget allows. Consider the total annual cost when comparing monthly vs. annual payment options.

How do I prove I have insurance during a traffic stop?

Police officers can verify active insurance through their system without you showing documents. However, it's good practice to carry proof. Keep a digital copy of your insurance certificate on your phone. Save your policy documents PDF in an easily accessible location. Use your insurance company's mobile app to display your active policy. Alternatively, carry a printed insurance card showing your policy number and validity dates. The Najm app also shows your active insurance status. Police typically check the system rather than requesting physical documents, but having proof available avoids potential delays.

What documents do I need to get car insurance?

Required documents for car insurance applications include valid Saudi driver's license or international driving license with minimum age requirement, national ID for Saudi citizens or valid Iqama for expats with more than 30 days until expiration, vehicle registration certificate (Istimara) showing current ownership, vehicle inspection certificate if your car is over 3 years old, and Najm history report for some insurers to verify claims history. Submit clear digital copies for online applications. Some insurers may request additional documents like proof of address, salary certificate for premium policies, or previous insurance policy documents. Have these ready before starting your application to avoid delays.

Car Insurance in Saudi Arabia - Learn About Coverage, Costs & Claims

Introduction

Car insurance is not optional in Saudi Arabia. It's a legal requirement for every vehicle owner.

Whether you're a Saudi citizen or an expat, understanding car insurance helps you stay compliant. It also protects you from financial risk.

The Saudi Central Bank (SAMA) regulates all insurance companies. They set minimum coverage requirements for motor insurance.

Most drivers choose between two main types: third-party and comprehensive coverage. Each serves different needs and budgets.

Quick Summary - Top Car Insurance Options in Saudi Arabia

The Saudi insurance market offers multiple reliable providers. Here's what stands out for 2025:

Best for Shariah-Compliant Coverage: Al Rajhi Takaful offers both third-party and comprehensive takaful insurance. Their comprehensive plans include theft and natural disaster coverage.

Strong Value Options: Tawuniya Cooperative Insurance provides third-party coverage up to 10,000,000 SAR. They offer optional add-ons for collision coverage.

Wide Coverage Network: Arabian Shield Cooperative Insurance covers both standard comprehensive and third-party policies. Their comprehensive plans include natural disaster protection.

What Giraffy Would Choose: For minimum legal compliance, third-party insurance from reputable providers meets SAMA requirements. All listed providers offer coverage up to 10,000,000 SAR for third-party liability.

For complete protection, comprehensive coverage from Al Rajhi Takaful or ACIG includes damage to your own vehicle. This makes sense for newer or high-value cars.

Quick Decision Guide:

New or financed car? Get comprehensive coverage
Older car with low value? Third-party coverage suffices
Need Shariah-compliant option? Choose takaful providers
Want maximum protection? Look for policies with optional add-ons

What Is Car Insurance and How Does It Work in Saudi Arabia?

Car insurance provides financial protection when accidents happen. It covers damage to other people's property and injuries to others.

In Saudi Arabia, the insurance system follows both conventional and Islamic takaful models. Both types must comply with SAMA regulations.

Legal Framework

Saudi law requires every vehicle to have active insurance. The Traffic Law mandates minimum third-party liability coverage.

SAMA oversees all insurance companies operating in the Kingdom. They ensure companies maintain financial stability and fair practices.

The Council of Cooperative Health Insurance monitors consumer protection. They handle complaints and enforce compliance standards.

How Coverage Works

When you buy car insurance, you pay a premium. This payment gives you coverage for a specific period, usually one year.

If an accident occurs, you file a claim with your insurance provider. The company investigates and pays covered damages according to your policy terms.

Third-party insurance pays for damage you cause to others. It doesn't cover damage to your own vehicle.

Comprehensive insurance covers both third-party damage and your own vehicle damage. It includes theft, fire, and natural disasters in most policies.

Key Terminology

Premium: The amount you pay for insurance coverage, typically annually.

Deductible: The amount you pay out of pocket before insurance coverage applies. Higher deductibles usually mean lower premiums.

Third-Party Liability: Coverage for damage or injury you cause to others. This is legally required in Saudi Arabia.

Comprehensive Coverage: Protection for both third-party liability and damage to your own vehicle.

Policy Period: The duration your insurance remains active, usually 12 months from the start date.

Claim: A formal request to your insurance company for payment of covered damages.

No-Claims Bonus: Some insurers offer discounts if you don't make claims during your policy period.

Third-Party vs Comprehensive Car Insurance - Complete Comparison

Understanding the difference between these two coverage types helps you choose the right protection level.

Third-Party Insurance Overview

Third-party insurance is the minimum legal requirement in Saudi Arabia. It protects other people from damage you cause.

This coverage pays for:

Damage to other vehicles in accidents you cause
Property damage resulting from your driving
Medical expenses for injured third parties
Legal liability up to 10,000,000 SAR

What third-party insurance does NOT cover:

Damage to your own vehicle
Theft of your car
Fire damage to your vehicle
Natural disasters affecting your car
Personal injury to you as the driver

Comprehensive Insurance Overview

Comprehensive insurance includes everything in third-party coverage plus protection for your own vehicle.

Additional coverage includes:

Collision damage to your vehicle
Theft of your car
Fire damage
Natural disasters (floods, sandstorms)
Vandalism in many policies

Many comprehensive policies offer optional add-ons like:

Emergency roadside assistance
Temporary replacement vehicle
Driver injury coverage
Passenger injury protection
Windscreen and glass replacement

Coverage Comparison Table

Feature	Third-Party	Comprehensive
Third-party liability	Up to 10,000,000 SAR	Up to 10,000,000 SAR
Own vehicle damage	Not covered	Covered
Theft coverage	Not covered	Covered
Natural disaster damage	Not covered	Usually covered
Driver injury	Optional add-on	Optional add-on
Roadside assistance	Optional add-on	Optional add-on
Replacement vehicle	Not covered	Optional add-on
Legal requirement	Meets minimum	Exceeds minimum

When to Choose Third-Party

Third-party insurance makes sense when:

Your car is older with low market value
Repair costs would exceed the car's worth
You have savings to cover your own repairs
You want the lowest possible premium

When to Choose Comprehensive

Comprehensive coverage is better when:

You have a new or expensive vehicle
Your car is financed and the bank requires it
You cannot afford major repair costs
You want complete peace of mind
You drive in high-risk areas

Cost Comparison

Third-party insurance typically costs 30-50% less than comprehensive coverage. The exact difference depends on:

Vehicle make and model
Driver age and experience
Claims history
Location where you drive
Coverage limits and deductibles chosen

Giraffy Analysis: Most drivers with cars less than 5 years old benefit from comprehensive coverage. The additional cost is worthwhile given repair expenses for modern vehicles.

For cars older than 8-10 years, third-party coverage often makes more financial sense. Calculate your car's current market value and compare it to the premium difference.

Car Insurance Providers in Saudi Arabia - Detailed Analysis

Saudi Arabia has multiple licensed insurance companies offering motor coverage. Each provides different features and service levels.

Al Rajhi Takaful

Al Rajhi Takaful operates under Shariah-compliant principles. They offer both third-party and comprehensive takaful coverage.

Comprehensive Coverage Features:

Coverage up to 10,000,000 SAR for third-party liability
Protection for your own vehicle
Theft coverage included
Natural disaster protection
Optional driver injury add-on
Optional passenger injury protection
Optional roadside assistance
Optional temporary replacement vehicle
Optional coverage for driving outside Saudi Arabia in GCC countries

Third-Party Coverage Features:

Third-party liability up to 10,000,000 SAR
Optional driver injury coverage
Optional natural disaster protection
Optional roadside assistance

Best For: Drivers seeking Shariah-compliant insurance with flexible optional coverage additions.

Tawuniya Cooperative Insurance

Tawuniya Cooperative Insurance is one of Saudi Arabia's largest insurance providers. They serve both individual and commercial clients.

Comprehensive Coverage Features:

Third-party coverage up to 10,000,000 SAR
Own vehicle damage covered
Optional driver injury add-on

Third-Party Coverage Features:

Liability coverage up to 10,000,000 SAR
Optional collision coverage add-on
Optional windscreen and glass coverage
Optional towing service

Best For: Drivers wanting customizable coverage through optional add-ons.

Arabian Shield Cooperative Insurance

Arabian Shield Cooperative Insurance provides comprehensive motor insurance solutions with SNB bank integration.

Comprehensive Coverage Features:

Third-party liability up to 10,000,000 SAR
Own vehicle damage covered
Natural disaster coverage included
Theft protection
No depreciation deduction on covered repairs
Optional driver injury coverage
Optional roadside assistance
Optional temporary replacement vehicle
Optional GCC coverage for international driving

Third-Party Coverage Features:

Liability up to 10,000,000 SAR
Optional roadside assistance

Best For: SNB bank customers seeking integrated insurance solutions.

ACIG Insurance

ACIG offers multiple tiers of motor insurance including a unique "Own Damage Plus" option.

ACIG Comprehensive Features:

Third-party coverage up to 10,000,000 SAR
Own vehicle damage included
Emergency medical expenses covered
Natural disaster protection
Theft coverage
Windscreen and glass replacement

ACIG Plus (Own Damage Plus) Features:

Everything in comprehensive coverage
Driver injury coverage included (not optional)
Emergency medical expenses included
Temporary replacement vehicle included
Theft and natural disaster coverage included

Third-Party Features:

Standard liability coverage up to 10,000,000 SAR

Best For: Drivers wanting premium coverage with medical expense protection included.

Wataniya Insurance Company

Wataniya Insurance Company provides both third-party and comprehensive motor insurance options.

Comprehensive Coverage Features:

Third-party liability up to 10,000,000 SAR
Own vehicle damage covered

Third-Party Coverage Features:

Liability coverage up to 10,000,000 SAR

Best For: Drivers seeking straightforward coverage without complex add-ons.

Additional Provider Options

Several other SAMA-licensed providers offer motor insurance:

AlJazira Takaful: Shariah-compliant third-party coverage Arabia Insurance: Third-party with optional driver injury add-on Salama Cooperative Insurance: Basic third-party coverage Walaa Cooperative Insurance: Third-party with GCC driving coverage included Medgulf: Standard third-party liability insurance Gulf General Insurance: Third-party with multiple optional add-ons including driver injury, passenger injury, and roadside assistance ALETIHAD Cooperative Insurance: Both third-party and comprehensive options with emergency medical expense add-ons

Provider Comparison Table

Provider	Comprehensive	Third-Party	Natural Disaster	Theft	Driver Injury	Shariah-Compliant
Al Rajhi Takaful	✓	✓	✓	✓	Optional	✓
Tawuniya	✓	✓	Not standard	Not standard	Optional	✗
Arabian Shield	✓	✓	✓	✓	Optional	✗
ACIG	✓	✓	✓	✓	Optional/Included	✗
ACIG Plus	✓	✗	✓	✓	✓ Included	✗
Wataniya	✓	✓	Not specified	Not specified	Not specified	✗
AlJazira Takaful	✗	✓	Not covered	Not covered	Not covered	✓
Arabia Insurance	✗	✓	Not covered	Not covered	Optional	✗
Walaa	✗	✓	Not covered	Not covered	Optional	✗

Table Notes:

All providers offer third-party liability coverage up to 10,000,000 SAR as required by SAMA
Natural disaster typically includes floods, sandstorms, and weather-related damage
Driver injury coverage protects the policyholder in case of accident-related injuries
Shariah-compliant providers operate under takaful (cooperative insurance) principles
Coverage details may vary by specific policy terms; consult providers directly for complete information

Giraffy Analysis: For Shariah-compliant options, Al Rajhi Takaful offers the most comprehensive coverage with natural disaster and theft protection included.

For maximum flexibility with add-ons, Arabian Shield and Gulf General Insurance provide numerous optional coverages. This lets you customize protection to your specific needs.

ACIG Plus stands out for drivers wanting premium coverage with medical expenses and temporary replacement vehicles included rather than as add-ons.

How Car Insurance Is Priced in Saudi Arabia

Insurance premiums vary significantly based on multiple factors. Understanding these helps you anticipate costs and find better rates.

Vehicle-Related Factors

Car make and model strongly influence premiums. Luxury vehicles cost more to insure than economy cars. This reflects higher repair costs and increased theft risk.

Vehicle age affects pricing. Newer cars (0-3 years) typically have higher comprehensive premiums. Older vehicles (10+ years) have lower premiums but may only qualify for third-party coverage.

Vehicle value directly impacts comprehensive coverage costs. Insurance companies base premiums on potential claim amounts. A car worth 150,000 SAR costs more to insure comprehensively than one worth 30,000 SAR.

Modification status matters. Aftermarket modifications can increase premiums. Some insurers require separate coverage for non-factory modifications.

Driver-Related Factors

Age and experience significantly impact rates. Drivers under 25 typically pay higher premiums. Those over 25 with 5+ years of experience often qualify for better rates.

Driving history affects pricing. A clean record with no accidents or violations earns you lower premiums. Multiple claims or traffic violations increase costs substantially.

License type influences rates. International licenses sometimes result in higher premiums compared to Saudi licenses. Some insurers charge more for drivers with less than 2 years of Saudi driving experience.

Nationality can affect pricing. Some insurers adjust rates based on statistical risk data for different nationalities.

Coverage-Related Factors

Policy type determines base costs. Third-party insurance costs 30-50% less than comprehensive coverage for the same vehicle.

Deductible amount affects premiums inversely. Higher deductibles (more you pay out of pocket) reduce your premium. Lower deductibles increase premium costs.

Coverage limits beyond the standard 10,000,000 SAR may increase costs. Some policies offer higher liability limits for additional fees.

Optional add-ons increase premiums. Each additional coverage feature (roadside assistance, replacement vehicle, injury coverage) adds to your total cost.

Usage-Related Factors

Annual mileage influences rates for some insurers. Higher mileage increases accident risk and may result in higher premiums.

Primary use affects pricing. Commercial use typically costs more than personal use. Daily commuting may cost more than occasional weekend driving.

Parking location matters. Cars parked in secure garages often qualify for discounts. Street parking in high-crime areas may increase rates.

Geographic location impacts costs. Riyadh, Jeddah, and Dammam may have different rate structures. Rural areas sometimes have lower premiums than major cities.

Pricing Optimization Strategies

Compare multiple quotes from different providers. Rates vary significantly between companies for the same coverage.

Increase your deductible to lower premiums. Only do this if you can afford the higher out-of-pocket cost in case of claims.

Maintain a clean driving record to qualify for no-claims bonuses and better rates over time.

Bundle with other policies like home or health insurance if insurers offer multi-policy discounts.

Pay annually instead of monthly if possible. Some insurers offer discounts for full upfront payment.

Review coverage annually to ensure you're not over-insured as your car depreciates.

Ask about discounts for security features like alarms, GPS tracking, or dash cameras.

Giraffy Analysis: The single biggest factor you control is coverage type selection. Drivers with older vehicles (8+ years) can save significantly by choosing third-party coverage instead of comprehensive.

For newer vehicles where comprehensive coverage makes sense, adjusting your deductible from 500 SAR to 1,000 SAR can reduce premiums by 10-15%. Make sure you have savings to cover the higher deductible if needed.

Your driving record matters immensely. One at-fault accident can increase your premiums by 20-30% for multiple years. Defensive driving pays off financially through lower insurance costs.

Coverage Features and Optional Add-Ons Explained

Understanding what each coverage option protects helps you build the right policy for your needs.

Standard Third-Party Liability

Every policy includes basic third-party liability coverage. This is legally required and covers:

Property damage you cause to other vehicles, buildings, or objects. Coverage extends up to 10,000,000 SAR per incident.

Bodily injury to other drivers, passengers, or pedestrians. Medical expenses and compensation fall under this coverage.

Legal defense costs if you face lawsuits related to covered accidents. Insurance companies typically handle legal proceedings.

Emergency transportation for injured third parties to medical facilities.

Own Vehicle Damage Coverage

Comprehensive policies add protection for your car. This covers:

Collision damage from accidents regardless of fault. Your vehicle repairs are covered minus any deductible.

Single-vehicle accidents like hitting poles, barriers, or ditches. This protection applies even when no other vehicles are involved.

Parking damage from unknown parties. If someone hits your parked car and leaves, comprehensive coverage pays for repairs.

Theft Protection

This coverage reimburses you if your vehicle is stolen. Key features include:

Total loss payment based on your car's current market value. The insurer calculates fair market value at the time of theft.

Attempted theft damage repairs if thieves damage your car without successfully stealing it.

Waiting period typically requires reporting to police and waiting 30-60 days before claim approval.

GPS tracking discount available from some insurers if your car has anti-theft systems installed.

Natural Disaster Coverage

Protection against weather and environmental damage includes:

Flood damage from heavy rains or standing water. This covers both exterior and interior water damage.

Sandstorm damage to paint, windscreens, and mechanical systems. Common in Saudi Arabia's desert climate.

Hail damage to body panels and glass. This protects against weather-related bodywork needs.

Fire damage from wildfires or other natural causes (not including engine fires, which may require separate coverage).

Driver Injury Coverage (Optional Add-On)

This optional protection covers the policyholder's injuries. Benefits include:

Medical expense reimbursement for treatment following accidents. Coverage limits vary by policy, typically 10,000-50,000 SAR.

Disability benefits if injuries prevent you from working. Some policies pay monthly compensation.

Accidental death benefit paid to your beneficiaries. This provides financial support to your family.

Most providers offer this as an optional add-on. ACIG Plus includes driver injury coverage as standard rather than optional.

Passenger Injury Coverage (Optional Add-On)

Protects passengers in your vehicle during accidents. Coverage includes:

Medical expenses for passenger treatment. Each passenger typically has individual coverage limits.

Rehabilitation costs for serious injuries requiring ongoing therapy.

Disability benefits for passengers who cannot return to work due to accident injuries.

This add-on makes sense if you regularly transport family members or friends.

Emergency Roadside Assistance (Optional Add-On)

Practical support when your car breaks down. Services include:

Towing service to the nearest repair facility. Some policies limit towing distance (50-100km).

On-site repairs for minor issues like flat tires or dead batteries. Technicians come to your location.

Fuel delivery if you run out of gas. Usually covers a small amount to reach the nearest station.

Lockout service if you lock keys inside your vehicle.

24/7 hotline access for emergency situations anywhere in Saudi Arabia.

Temporary Replacement Vehicle (Optional Add-On)

Provides transportation while your car is being repaired. Features include:

Rental car access during covered repair periods. Usually economy or mid-size vehicles.

Duration limits typically range from 7-30 days depending on policy terms.

Value limits may cap daily rental costs at 150-300 SAR.

Claim requirements often require repairs to take more than 24-48 hours to qualify.

ACIG Plus includes this benefit as standard in their premium policy tier.

GCC Driving Coverage (Optional Add-On)

Extends your coverage beyond Saudi borders. This includes:

Geographical extension to UAE, Kuwait, Bahrain, Oman, and Qatar. Your Saudi policy remains active in these countries.

Cross-border incidents covered under the same terms as Saudi accidents.

Temporary visits typically covered for trips up to 30-90 days per year.

Walaa Cooperative Insurance includes GCC coverage as standard in their third-party policies. Al Rajhi Takaful and Arabian Shield offer it as an optional add-on.

Agency Repair Coverage (Optional Add-On)

Guarantees repairs at authorized dealer workshops. Benefits include:

Original manufacturer parts used for all repairs. No aftermarket or generic parts.

Factory-trained technicians perform all repair work. This maintains quality standards.

Warranty preservation since authorized dealers handle repairs. Important for newer vehicles under manufacturer warranty.

Higher premiums reflect increased repair costs at dealerships compared to independent shops.

This makes sense for luxury vehicles or cars still under manufacturer warranty.

Windscreen and Glass Coverage (Optional Add-On)

Protects against glass damage without affecting your no-claims bonus. Covers:

Windscreen replacement for cracks or chips beyond repair. Usually no deductible applies.

Side window replacement from vandalism or accidents.

Rear window damage covered under the same terms.

Mirror glass replacement for side and rearview mirrors.

Some comprehensive policies include this as standard. ACIG Comprehensive includes windscreen coverage.

No Depreciation Coverage (Optional Add-On)

Ensures full part value replacement without depreciation deductions. Key points:

New parts replacement regardless of your car's age. Insurers don't reduce payments for part depreciation.

Full value repairs maintain your vehicle's condition. Especially valuable for cars 3-7 years old.

Higher premiums reflect the increased cost to insurers. Typically adds 10-20% to comprehensive policy costs.

Arabian Shield includes no depreciation deduction as standard in comprehensive policies.

Coverage Feature Comparison Table

Feature	Standard Third-Party	Comprehensive	Premium Comprehensive
Third-party liability	✓ (10M SAR)	✓ (10M SAR)	✓ (10M SAR)
Own vehicle damage	✗	✓	✓
Theft coverage	✗	Usually ✓	✓
Natural disasters	✗	Usually ✓	✓
Driver injury	Optional add-on	Optional add-on	Often included
Passenger injury	Optional add-on	Optional add-on	Optional/Included
Roadside assistance	Optional add-on	Optional add-on	Often included
Replacement vehicle	✗	Optional add-on	Often included
GCC coverage	Optional add-on	Optional add-on	Optional add-on
Agency repairs	Not applicable	Optional add-on	Optional add-on
Windscreen coverage	✗	Sometimes included	Usually included
No depreciation	Not applicable	Optional add-on	Sometimes included

Giraffy Analysis: Most drivers don't need every optional add-on. Focus on coverage that matches your actual risks.

If you drive regularly in remote areas, roadside assistance provides valuable peace of mind. For city drivers with easy access to repair shops, this may be unnecessary.

GCC coverage only makes sense if you regularly drive to neighboring countries. Occasional cross-border trips (once or twice yearly) may not justify the added cost.

Driver and passenger injury coverage becomes more valuable if you don't have comprehensive health insurance. Check what your health policy covers before adding these.

How to Get Car Insurance in Saudi Arabia - Step-by-Step Process

Obtaining car insurance in Saudi Arabia follows a straightforward process. Understanding each step helps you get covered quickly.

Step 1: Gather Required Documents

Before starting, collect these essential documents:

Vehicle ownership documents (Istimara) showing you as the registered owner. Insurance companies need current registration details.

Saudi driver's license or valid international license. Some insurers require a minimum license age (6 months to 1 year).

National ID (for Saudi citizens) or valid Iqama (for expats). Identification must be current and not expire within the policy period.

Vehicle inspection certificate if required. Cars over 3 years old typically need passing inspection certificates.

Step 2: Compare Insurance Providers and Quotes

Research available options before committing. Key steps include:

Visit comparison websites like Giraffy to see multiple providers at once. Compare coverage features, not just prices.

Check provider ratings through SAMA's website. Ensure companies have good financial stability ratings.

Review claim processes by reading customer feedback. Quick claim settlement matters when you need it.

Verify coverage details by reading policy terms carefully. Understand exclusions and limitations.

Request quotes from at least 3-5 providers to find the best value.

Step 3: Choose Coverage Type and Add-Ons

Decide between third-party and comprehensive based on your vehicle and financial situation.

For new cars (0-3 years): Comprehensive coverage usually makes sense. Add theft and natural disaster protection.

For mid-age cars (4-7 years): Consider comprehensive if repair costs would strain your budget. Otherwise, third-party may suffice.

For older cars (8+ years): Third-party coverage typically provides better value. Repair costs often approach or exceed vehicle value.

Select add-ons based on actual needs:

Daily commute in heavy traffic? Consider roadside assistance.
Regular passengers? Add passenger injury coverage.
Drive to GCC countries? Include cross-border protection.
Car financed by bank? Check their coverage requirements.

Step 4: Submit Application

Most insurers offer multiple application channels:

Online applications through provider websites provide the fastest processing. Upload digital copies of required documents.

Mobile apps let you apply directly from your smartphone. Many insurers have dedicated apps with quick approval processes.

Insurance agents can guide you through the process in person. Visit provider offices in major cities.

Bank partnerships streamline applications if you bank with institutions that partner with insurers. Arabian Shield integrates with SNB, for example.

Typical application time: 10-30 minutes for basic information entry and document upload.

Step 5: Receive Quote and Policy Terms

After submitting your application, insurers provide:

Premium quote showing annual or monthly payment options. Review the total cost including all fees.

Policy schedule detailing coverage limits, deductibles, and exclusions. Read this carefully before accepting.

Terms and conditions document explaining your rights and responsibilities. Understand claim procedures and requirements.

Most providers deliver quotes within hours for standard applications. Complex situations may take 24-48 hours.

Step 6: Make Payment

Once you accept the quote, complete payment through:

Credit or debit card for immediate processing. Most insurers accept Visa, Mastercard, and mada cards.

Bank transfer if you prefer direct payment from your account. This may delay policy activation by 1-2 business days.

Payment plans for monthly installments if you can't pay annually. Note that monthly payments typically cost 5-10% more than annual payment.

Cash payment at provider offices if you prefer in-person transactions.

Step 7: Receive Policy Documents

After payment confirmation, you receive:

Digital policy certificate via email immediately. Save this to your phone for traffic stops.

Insurance card showing your policy number, coverage period, and contact information. Print this or keep digital copy.

Physical policy documents mailed to your address within 5-10 business days. Keep these with your vehicle documents.

Najm registration happens automatically. Your insurance company registers your policy with Najm for accident reporting.

Step 8: Verify Policy Activation

Confirm your insurance is active before driving:

Check Najm website or app to verify your vehicle shows active coverage. This confirms proper registration.

Test insurer's hotline to ensure you can reach them in emergencies. Save their number in your phone.

Review renewal date and set calendar reminders. Most policies last 12 months from activation.

Update vehicle registration (Istimara) at your earliest convenience. New insurance must reflect on your registration renewal.

Common Application Issues and Solutions

"My vehicle is too old" - Some comprehensive insurers don't cover cars over 10-15 years. Switch to third-party coverage.

"Premium seems too high" - Get quotes from multiple providers. Rates vary significantly. Increase deductibles to lower premiums.

"Application was rejected" - This typically happens due to poor driving history. Contact insurers specializing in high-risk drivers.

"Documents not accepted" - Ensure all documents are current and clearly readable. Some insurers require Arabic translations of international documents.

Giraffy Analysis: Online applications provide the fastest, most convenient process. Most reputable providers offer instant quote generation and same-day policy activation.

Start the process at least 3-5 days before your current policy expires. This gives you time to compare options properly without rush decisions.

Banks like SNB offer streamlined insurance applications for their customers. If you have an existing banking relationship, check their insurance partnerships for easier processing.

How to File a Car Insurance Claim in Saudi Arabia

Filing claims properly ensures faster processing and approval. The Najm system centralizes accident reporting across all insurers.

The Najm System Explained

Najm (Najm for Insurance Services) is Saudi Arabia's unified accident reporting platform. All insurance companies use this system.

How Najm works:

Officers attend accident scenes or receive reports at Najm centers
They document damage, take photos, and determine fault
Reports upload directly to insurers
Claims process based on Najm's determination

Why Najm matters:

Standardizes accident reporting across Saudi Arabia
Reduces fraud and disputes
Speeds up claim processing
Provides neutral third-party assessment

Every driver should download the Najm mobile app and understand how to use it.

Accident Scene Procedures

When an accident occurs, follow these steps:

Ensure safety first. Move vehicles to the roadside if possible. Turn on hazard lights. Place warning triangles if available.

Check for injuries. Call 997 (Red Crescent) immediately if anyone is injured. Injured parties always take priority over property damage.

Take photos. Document vehicle positions before moving them. Photograph damage from multiple angles. Capture license plates of all involved vehicles.

Exchange information. Collect names, phone numbers, insurance details from other drivers. Note their Iqama or national ID numbers.

Call Najm. Report the accident through the Najm app (for minor accidents) or call 920000560 for officer attendance. Wait for Najm assessment before moving vehicles in major accidents.

Don't admit fault. Provide factual information only. Let Najm determine responsibility.

Contact your insurer. Call their hotline within 24 hours even if you use Najm for reporting.

Minor Accidents (Under 10,000 SAR Damage)

Small accidents can be reported through the Najm app without officer attendance.

App reporting process:

Open Najm app and select "Report Accident"
Enter location details
Upload photos showing damage
Enter other driver's information
Both parties digitally sign the report

Fault determination happens automatically based on accident type and submitted evidence. The app generates a report within minutes.

Claim filing proceeds directly with your insurer using the Najm reference number.

This streamlined process works well for single-vehicle accidents, parking lot incidents, and minor collisions with clear fault.

Major Accidents (Over 10,000 SAR or Injuries)

Serious accidents require Najm officer attendance.

Call Najm hotline at 920000560 to request an officer. Provide your location details clearly.

Wait at the scene until the officer arrives. Moving vehicles before assessment may complicate fault determination.

Provide information to the investigating officer. Be honest and factual about what happened.

Receive Najm report with official fault determination. This report goes directly to all involved insurers.

Follow up with your insurer within 24-48 hours to initiate your claim.

Filing a Claim with Your Insurance Company

Once you have a Najm report, start your claim:

Contact your insurer via their hotline, website, or mobile app. Provide the Najm reference number.

Submit required documents:

Najm accident report
Your driver's license
Vehicle registration (Istimara)
Photos of damage
Police report (if any)
Repair estimates if requested

Choose repair facility. Your insurer will direct you to approved workshops. Agency repair coverage holders can choose dealerships.

Pay your deductible before repairs begin if your policy includes one.

Track claim status through your insurer's app or website. Most providers offer real-time updates.

Claim Types and Processing Times

Third-party claims (you caused damage to others):

Your insurer pays the other party directly
No deductible applies for liability claims
Processing takes 5-10 business days typically
No impact on your vehicle repairs

Comprehensive claims (damage to your vehicle):

You pay the deductible to the repair shop
Insurer covers remaining costs
Processing takes 3-7 business days for approval
Repairs typically take 7-30 days depending on damage

Theft claims:

Report to police immediately
File police report and insurance claim within 24 hours
Wait 30-60 days for vehicle recovery attempts
If not recovered, insurer pays market value
Processing takes 45-90 days total

Total loss claims:

Najm or insurer's assessor determines if vehicle is totaled
Generally applies when repairs exceed 50-70% of vehicle value
Insurer pays market value minus deductible
You surrender the vehicle to the insurer
Processing takes 14-30 days

Claim Denial and Appeals

Claims may be denied for several reasons:

Policy exclusions like driving under influence, racing, or using the car commercially. These violate policy terms.

Late reporting if you fail to notify your insurer within required timeframes (usually 24-48 hours).

Fraud suspicion if evidence suggests intentional damage or false reporting.

Coverage lapse if your policy expired before the accident date.

Excluded driver if someone not listed on your policy was driving.

If your claim is denied:

Request detailed written explanation from your insurer
Review your policy terms to verify the denial reason
Gather additional evidence if the denial seems incorrect
File a formal appeal with the insurance company
Contact SAMA consumer protection if you believe denial is unjust
Consider legal advice for large disputed claims

SAMA investigates insurance complaints and can compel companies to pay legitimate claims.

Tips for Faster Claim Processing

Report promptly. Contact your insurer within 24 hours of any accident. Delays complicate investigations.

Document thoroughly. More photos and information help, never hurt. Include environmental conditions, traffic signs, road markings.

Be honest and consistent. Contradictions raise red flags and delay processing.

Choose approved repair shops. Using non-network facilities may delay approval or reduce reimbursement.

Follow up regularly. Check claim status every 2-3 days. Proactive follow-up prevents claims from stalling.

Keep all receipts. Save documentation for any expenses related to the accident (towing, rental cars, etc.).

Understand your deductible. Have the amount ready to pay the repair shop promptly.

Giraffy Analysis: The Najm app dramatically simplifies minor accident reporting. Download it before you need it and familiarize yourself with the interface.

For comprehensive claims, expect to pay your deductible upfront. The repair shop won't begin work until they receive payment. Have 1,000-2,000 SAR readily available if you have comprehensive coverage.

Most delays in claim processing stem from incomplete documentation. When filing a claim, submit every requested document immediately rather than piecemeal. This speeds approval significantly.

Comprehensive FAQ - Car Insurance in Saudi Arabia

Basic Questions

Coverage and Claims Questions

Provider and Policy Questions

Specific Situation Questions

Technical and Process Questions

Conclusion - Making the Right Car Insurance Choice

Car insurance in Saudi Arabia protects you financially and keeps you legally compliant. Understanding your options helps you choose appropriate coverage.

Third-party insurance meets legal requirements and costs less. It suits older vehicles where repair costs exceed value. Comprehensive coverage protects your investment in newer vehicles. It covers your own car against theft, damage, and natural disasters.

Compare quotes from multiple providers. Coverage features vary significantly between companies. Don't select based solely on price. Consider claim settlement reputation and customer service quality.

Shariah-conscious drivers have excellent takaful options. Al Rajhi Takaful offers comprehensive Islamic coverage with strong features.

Most drivers don't need every optional add-on. Select coverage matching your actual risks. Frequent GCC travelers need cross-border coverage. Daily commuters in remote areas benefit from roadside assistance.

Maintain a clean driving record to keep premiums low. No-claims bonuses and better rates reward safe driving over time.

Use the Najm system properly when accidents occur. Download the app before you need it. Report incidents promptly for faster claim processing.

Action Checklist

Here's your step-by-step path to getting proper car insurance:

Immediate Actions (This Week):

Download the Najm mobile app to your phone
Check your current insurance expiration date
Request quotes from at least 3 providers
Review your vehicle's current value and age
Calculate your comfortable deductible amount

Before Buying (Next 2 Weeks):

Compare coverage features, not just prices
Read policy terms for your top 2-3 choices
Verify the insurer's SAMA license status
Check online reviews for claim settlement experiences
Confirm required documents are current and accessible

At Purchase:

Choose coverage type matching your vehicle age and value
Select only add-ons you'll actually use
Pay annually if possible to save 5-10%
Save your digital policy certificate to your phone
Verify policy activation in the Najm system

Ongoing Maintenance:

Set calendar reminders for renewal 30 days before expiration
Drive safely to maintain claim-free status
Review coverage annually as your car depreciates
Keep insurer hotline number saved in your phone contacts
Document any accidents thoroughly with photos

Key Warnings and Reminders

Never drive without active insurance. The legal and financial consequences far outweigh premium costs.

Don't let policies lapse between renewals. Even one day without coverage violates Saudi law.

Report all accidents to Najm and your insurer within 24 hours. Late reporting may result in claim denial.

Read policy exclusions carefully before buying. Understanding what's not covered prevents disappointment during claims.

Comprehensive coverage doesn't mean every situation is covered. Driving violations, racing, or commercial use typically void coverage.

Higher deductibles reduce premiums but increase your out-of-pocket costs. Only choose deductibles you can afford to pay.

Related Insurance Guides

Your car insurance is just one part of complete financial protection in Saudi Arabia. Consider these related insurance topics:

For Complete Vehicle Protection: Consider learning about mechanical breakdown coverage and extended warranties. These complement car insurance by covering engine and system failures rather than accident damage.

For Personal Protection: Health insurance covers medical expenses if you're injured in accidents. Many comprehensive car insurance driver injury add-ons have lower limits than dedicated health policies.

For International Travel: If your GCC coverage only applies to vehicle accidents, you still need travel insurance for medical emergencies and trip interruptions in other countries.

For Complete Financial Security: Life insurance protects your family if fatal accidents occur. Car insurance death benefits are limited compared to dedicated life insurance policies.

Need Help Choosing?

Every driver's situation differs. Your ideal coverage depends on your vehicle, budget, driving patterns, and risk tolerance.

For complex situations or high-value vehicles, consider consulting with insurance agents. They can explain nuanced coverage options and help customize policies.

SAMA's website provides consumer resources and licensed insurer lists. Use these tools to verify any company before purchasing.

Giraffy helps you compare options objectively. We provide data and analysis without pushing specific products. Make informed choices based on your actual needs.

Stay protected, drive safely, and ensure your coverage matches your current situation. Review annually as circumstances change. The right car insurance provides peace of mind for every journey on Saudi roads.