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The Ultimate Guide for Car Insurance in Saudi Arabia

by Busines Newswire
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Navigating the complexities of car insurance in Saudi Arabia is crucial for ensuring compliance and protection while driving in the Kingdom. This comprehensive guide explores the benefits of various types of car insurance available in KSA, delves into policy exclusions, and provides key insights specifically tailored for expatriates living or planning to move to Saudi Arabia. Whether you’re a new resident or looking to switch your insurance plan, this article offers essential information to help you make informed decisions.

Types of Car Insurance Available in KSA
In Saudi Arabia, individuals can choose between two main types of car insurance: comprehensive insurance and third-party insurance. Each type has mandatory requirements, including:

  • Payment of insurance renewal fees
  • Settlement of any traffic violations
  • Maintenance of valid car insurance and car inspection

Third-party Insurance

This is a mandatory insurance that covers costs, financial compensation, and legal claims for third parties in accidents.

Benefits of Third Party Insurance

  • Coverage of third-party’s damage costs
  • Coverage of third-party’s injury costs, which can also include compensation for death or disability
  • Coverage for legal costs if the third party files a lawsuit against insured
  • Less costly than comprehensive insurance
  • Preserves the individual’s rights in KSA because it’s mandatory

Exclusions for Third-party Insurance

  • Natural disasters
  • Accidents that occur outside Saudi Arabia

Cost Range
The price ranges between 600 & 1,500 SAR. The exact number can be determined based on the company as well as the following factors:

  • Car type and model year: Costly new cars
  • Horsepower: Cars with high performance numbers
  • Age and health condition: Older drivers or people with medical history of accidents
  • Residency area: Residing in regions with high accident rates

Comprehensive Insurance

This is a non-compulsory inclusive insurance, while the third-party insurance provides coverage for the third party’s damage. The comprehensive insurance covers the costs of both the insured & third party, it’ll also compensate for cases like theft, natural disasters, etc.

Benefits of Comprehensive Insurance

  • Full coverage for the insured’s car damage costs
  • Compensation in case of theft or fire
  • Coverage for costs caused by disasters like earthquakes, storms, or floods
  • Coverage for costs of the third party’s damages
  • Offering emergency roadside assistance like towing
  • Providing a courtesy car during the insured’s vehicle servicing
  • Coverage for damage costs caused by riots

* These benefits might vary depending on the company and policy terms.
Exclusions for Comprehensive Insurance

  • Accidents due to driving under the influence of alcohol or drugs
  • Invalid driver’s license at the time of accident
  • Car tuning without notifying the insurance company
  • Damage from improper vehicle maintenance
  • Damage from unethical or illegal vehicle use
  • Damage from wars
  • Damages from natural wear and tear over time
  • Damage from racing or motorsports

Price Range

The price varies based on the company as well as the following factors:

Car type and model year: New cars with high price tags

Residency area: High fees for those who reside in big cities

Accident history: High fees for cars with previous accidents

Comprehensive insurance typically costs between 1,500 and 8,000 SAR. But It is recommended to thoroughly research each insurance company before choosing the annual plan that suits you best.


Understanding car insurance in Saudi Arabia is essential, especially for expatriates. This guide provides a foundation, but continuous learning and adaptation to local regulations are key. It is crucial for expats and residents to thoroughly research and compare different insurance plans.