It’s a common burden for people in Saudi Arabia to find the best way to insure their cars and find that financial protection that meets their needs and their budget after buying a new or even used car. However, they seem to forget that this type of protection will not only help them to save money but it’ll actually bring them peace of mind.
In the following article, we will discuss car insurance types in Saudi Arabia and their coverage limits, along with some insurance terminology to help you to get the best car insurance for you.
Car Insurance Pricing
The insurance pricing varies from one company to another, but they all follow a set of policies that abide by their regulations, and most companies set their pricings according to these factors:
- Insurance Record
- Driver’s Age
- Vehicle’s Make & Model
- Driving City
- Vehicle Purpose of Use
Car Insurance Types
In Saudi Arabia, car owners have the ability to choose between the following insurance types:
Third-Party Liability (TPL) Insurance
It’s a compulsory coverage required by law to drive in the kingdom, and it covers the following:
- Legal liability towards others in case the accident resulted in physical injuries
- Insurance company will compensate for financial losses for private or public property
- Insurance company will compensate for financial losses in case the accident resulted in the death of others
Comprehensive Insurance
This type includes the TPL coverage limits mentioned above, as well as the following:
- Covers legal responsibility towards others in the event of an accident that caused physical injuries, death, or financial claims to the other party
- Compensate vehicle repair fees for damages caused by traffic accidents or fires
- Compensate vehicle repair fees for damages caused by natural disasters like floods, hail, storms, etc.
- Compensation for the car due to theft (without negligence)
Terminology of Car Insurance
- Policyholder: Legal person who signed insurance policy with the company and his name is shown in the document
- Additional Driver: Any person who drives the car with a valid driving license other than the policyholder is included in the document
- Deductible Value: Paid amount to insurance company on each claim for repairing your car
- Repair Method: Type of repair (agency repair or accredited workshops) chosen when you obtain your insurance
- Additional Coverages: Other compensations you can add when you purchase like extending geographical coverage to other countries
- Estimated Vehicle Value: The vehicle’s market value to calculate the compensation amount in case of total loss of the vehicle
- The Insured: Legal person who signed the insurance policy with the company and his name is shown in the document
- The Insured Vehicle: Form of transportation and its specifications registered in the document (not including Trains)
- Others: Every natural or legal person who suffers a loss or damage resulting from a risk other than Excluded in the document except for the insured and/or the driver or the person responsible for the accident
- Vehicle Driver: Anyone who drives the car above the age of 18 and carries a Driving License
- Right of Recourse: Insurance company’s right to collect the compensation that was paid for others from the insured, the driver or the person who caused the accident due to damage resulting from one of the reversals or exceptions
- Policy Schedule: Schedule attached to the document that includes all information about the deal
