How can I buy car insurance in Saudi Arabia. Recently I purchased a car and one of the requirements is to have an insurance card on it, please advise me?

How can I buy car insurance in Saudi Arabia.  Recently I purchased a car and one of the requirements is to have an insurance card on it, please advise me?

Car Insurance is also known by various names like Motor Insurance, Vehicle Insurance.  It is compulsory to have a motor vehicles insurance in Saudi Arabia.  There are various types of insurance available in the market but the lowest or the cheapest form is Motor third party Insurance which is made mandatory by the Government of Saudi Arabia.  Motor Third Party Insurance covers liabilities arising out of usage of your car and it provides cover against bodily injuries /death and property liability.  You may also add personal accidental cover to it.  The cost or price of a typical third party insurance ranges between Saudi Arabian Riyal (SAR) 300 to 500.  For those who are buying new cars may get a temporary insurance certificate from the insurance company, which can be replaced with a permanent certificate after getting the plate number of the vehicle.  You can visit any one of the following four companies.

Top two Insurance companies in terms of Sales

• Tawuniya
• Medgulf - The Mediterranean and Gulf Cooperative Insurance and Reinsurance Company

 Two Multinational Companies operating in Saudi Arabia

• Al-Alamiya Insurance company
• AXA Insurance 

Tags – Motor Insurance, Car Insurance, Saudi Arabia, Motor third party Insurance, Third party liability, temporary Insurance Certificate, property damage, bodily injuries, death.

Basic third party (liability) insurance is the most sought after cover in the motor insurance market. In some places it is referred to as “Act” only cover, as it is a statutory requirement to have to the coverage.  It can be issued as an standalone cover or can be clubbed with the own damage section of the cover. If it is clubbed with the own damage section then it is also known as package cover or comprehensive coverage.   Here we will try to understand the standalone cover offered by the Insurers.  In most of the countries this is a mandatory or compulsory cover.  This cover is issued to different types of motor vehicles like motor cycles, commercial vehicles, private vehicles etc.  There may be minor changes in the coverage depending upon the type of the vehicle. The third party covers may be branded by different names by different insurance companies but the coverage provided is similar and where the insurance is mandatory, it provides the minimum required coverage.  Earlier, we have understood the concept of third party.  The purpose of the cover is to provide coverage to the insured against legal liabilities arising out of the accidents against third parties, hence the coverage is popularly known as third party insurance.   

Coverage

The first and important aspect of the Third party cover is that it does not cover any losses occurring to the insured vehicle.  The purpose is to cover only third party liabilities. The policy cover the death or bodily injury caused to the third parties as a result of use of insured car. It will also provide cover to the physical damage, which means any damage caused to the property belonging to the third parties. Based on the limitation of the coverage, the third party liability (TPL) coverage’s are of two major types as follows,

1)        Combined limit or Combined single limit

2)        Split limit or separate limit