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Home / Features / What Is Third-Party Car Insurance In Saudi Arabia?

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What Is Third-Party Car Insurance In Saudi Arabia?

Every responsible driver prioritizes safety. Whether you’re on your own behind the wheel or driving with passengers, focused and defensive driving ensures you arrive without incident. Although you’re careful enough on the road, accidents will happen and other motorists might not be as careful as you are behind the wheel. It is for this reason that car insurance exists.

In the Kingdom of Saudi Arabia, minimum car insurance coverage is through third-party liability.

Mandatory Car insurance in Saudi Arabia

Third-party insurance in Saudi Arabia is a legal requirement. The mandatory insurance covers you from legal liability to third parties for bodily injuries in the event of an accident. Third-party liability (TPL) also covers you for damage to someone else’s vehicle. If the cause of the accident traces back to you, the injured party can make claims, making you liable for the cost of repairs and medical treatments.

Does third-party insurance cover injury to passengers in your vehicle? Yes, the mandatory insurance covers injuries to passengers in your car.

What TPL does not cover, however, is any damage to your own car or medical expenses for you as the driver (or anyone driving your vehicle). This distinction is important for motorists to understand, as it means you are only protected against claims others have made, not for your own losses. This is why it’s advisable to get additional auto insurance.

Comprehensive Insurance vs. Third-Party Car Insurance

What is the difference between third-party and comprehensive car insurance in Saudi Arabia? The difference between third-party and comprehensive car insurance in Saudi Arabia is in the extent of coverage.

Under TPL, you don’t have the benefit of getting roadside assistance insurance in KSA. If you frequently drive long distances and on challenging terrain, roadside assistance is a good add-on to your insurance policy. You can only get it on comprehensive auto insurance. With this add-on, you can get fuel delivery service, flat tire assistance, towing, and battery jumpstart, among others.

With comprehensive car insurance, you also get coverage for fire and theft, rain damage, windshield damage. You get coverage if your car sustains damage during an accident, which you’re not going to get with TPL.

Optional coverage under comprehensive car insurance includes:

Car replacement (while your vehicle is being repaired)
Coverage within GCC
Medical expenses for the driver injured in your vehicle
Medical expenses for the passengers injured in your vehicle
Auto repair at a dealership

What happens if you drive without valid car insurance in Saudi Arabia? Other than risking out-of-pocket expenses in the event of an accident, driving without a valid car insurance in Saudi Arabia leads to fines and penalties.

Saudi authorities use an automated system for license plate recognition technology, to identify cars without active insurance on the roads. A first offense can mean a fine of SAR 2,500 along with the impoundment of your vehicle for two months. Repeat offenses mean stiffer penalties with fines being doubled and impoundment lasting six months. These stricter measures demonstrate Saudi Arabia’s commitment to road safety.

Buying Third-Party Car Insurance in Saudi Arabia

When getting car insurance, the question isn’t whether TPL is better than comprehensive auto insurance. TPL is mandatory, so you’ll need to purchase one when driving in Saudi Arabia. Comprehensive auto insurance is ideal to have when your budget allows full coverage on the road. Eventually, you’ll need the security blanket of comprehensive car insurance because of TPL’s limitations.

Additionally, some banks or financial institutions that finance car payments require comprehensive auto insurance to protect their investments in the event of theft, a fire, or an accident. If you’ve bought a car and used bank financing, you may need to purchase comprehensive insurance.

For drivers who are not under financing agreements or simply looking to meet the minimum legal requirement, buying TPL is straightforward. The process has become much easier in recent years with digital platforms that allow you to compare providers, choose a policy, and complete the purchase online.

What documents are required to buy third-party car insurance in Saudi Arabia? When buying third-party car insurance in Saudi, you’ll need the following:

National ID
Mobile number
Vehicle registration

Enter the required information, review policy details, and complete your payment using a debit or credit card.

Third-Party Insurance Claim Process in Saudi Arabia

You can also process a claim online in minutes and wait a few days for it to be settled.

Online submission of claims is typically fuss-free, as long as you have all the necessary documents.

These documents include:

Original police report (secured within 24 hours of accident)
Medical reports if injuries were sustained
Repair estimates from approved autoshops
Copy of your driver’s licence
Completed claim form

The insurer will respond, usually within hours, to schedule an inspection appointment.

Accidents will happen even when you’re being careful on the road. It pays to have a valid third-party insurance in Saudi Arabia. With active insurance, you comply with the law and gain peace of mind knowing you’re financially covered in the event of an accident.

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