Car insurance in Saudi Arabia: mandatory third-party, comprehensive, and when you need each
Third-party liability (TPL) insurance is mandatory for every vehicle in Saudi Arabia: it covers damage you cause to others, but pays nothing for your own car. A valid policy in the owner's name is required to renew the istimara and to complete an ownership transfer.
Comprehensive insurance adds cover for your own car, typically costing between 2% and 5% of the car's value per year depending on driver, car and options. If your car is financed, the bank will usually require comprehensive cover for the whole loan term. When an accident happens, Najm (920000560) attends insured accidents and sends the report to the insurers.
Steps
- Decide the cover you need: third-party is the mandatory minimum; comprehensive makes sense for new or financed cars (the bank usually requires it for the whole loan term).
- Budget for it: comprehensive typically costs 2% to 5% of the car's value per year depending on driver, car and options.
- Get quotes from several licensed insurers and compare like for like: same deductible, agency vs workshop repair, same add-ons.
- Issue the policy in the car owner's own name — a policy in someone else's name does not satisfy the istimara and transfer requirements.
- Keep the policy valid all year: a lapse blocks istimara renewal and leaves you legally exposed.
- In any accident: report to Najm on 920000560 or via its app, and follow the claim with your insurer using the accident number.
Fees & costs
| Item | Amount | Notes |
|---|---|---|
| Third-party liability (TPL) | Varies by driver and vehicle | Mandatory for every vehicle |
| Comprehensive cover | Typically 2%-5% of car value per year | Usually required by the bank for the loan term |
Common questions
Is insurance mandatory for every car in Saudi Arabia?
Yes — third-party liability cover is mandatory for every vehicle, and a valid policy in the owner's name is required to renew the istimara and to complete an ownership transfer.
Roughly how much does comprehensive insurance cost?
Typically between 2% and 5% of the car's value per year, depending on driver age, claims history, city, car model and options — compare several like-for-like quotes before buying.
When is comprehensive cover effectively compulsory?
When the car is financed: the bank usually requires comprehensive cover for the entire loan term to protect the mortgaged vehicle, on top of the always-mandatory third-party cover.
Guidance only — the official authority is the final reference.