Third-party vs comprehensive insurance

Third-party insurance is mandatory for every vehicle in Saudi Arabia. It pays for damage and injuries you cause to others, up to SAR 10 million per incident under the unified compulsory policy, but pays nothing for your own car.

Comprehensive insurance adds cover for your own vehicle — accidents, fire and theft — with optional extras such as agency repair, natural hazards and young-driver cover. If your car is financed, the bank will require comprehensive cover for the whole loan period.

As a rule of thumb, comprehensive makes sense for newer or financed cars, while third-party may be enough for older, low-value cars. Insurance is now supervised by the Insurance Authority, and premiums carry 15% VAT.

Official source