Saudi-Steps
Back to motor insurance

motor insurance

How Motor Insurance Works in Saudi Arabia

Motor insurance is mandatory for all vehicles registered in Saudi Arabia. Without valid insurance, you cannot renew your vehicle registration (Istimara), and driving without insurance results in heavy fines. This guide explains how the system works, what it covers, and what every driver needs to know.

Who Is This For?

All vehicle owners and drivers in Saudi Arabia — whether Saudi nationals, residents, or visitors driving in the Kingdom.

What You Need Before Starting

Step-by-Step Process

  1. 1Understand that Saudi Arabia operates a cooperative insurance model — all insurance companies are regulated by the Insurance Authority (IA) and must offer standardised minimum coverage.
  2. 2Know that there are two main types of motor insurance in Saudi Arabia: Third-Party Liability (TPL) and Comprehensive. TPL is the minimum required by law.
  3. 3Your insurance is linked to your vehicle through the Najm platform — when you insure a car, it is registered electronically on the Najm system.
  4. 4Insurance must be active at all times — if your policy expires, your vehicle is flagged on Najm and you cannot renew your Istimara.
  5. 5When renewing your vehicle registration (Istimara), the system automatically checks Najm to verify your insurance is active before allowing the renewal.
  6. 6If you are involved in a road accident, a Najm accident report (Bayan Haadith) must be filed — this is the official document required by insurance companies to process claims.
  7. 7Insurance premiums are calculated based on the vehicle type, driver age, claims history, and coverage type. Prices vary between providers so it is worth comparing.

Common Mistakes to Avoid

  • ✗Letting insurance expire and continuing to drive — this results in fines and blocks Istimara renewal
  • ✗Not reporting accidents through Najm — without a Najm accident report, insurance claims are difficult or impossible to process
  • ✗Assuming the cheapest policy offers adequate coverage — always read what is and is not covered
  • ✗Not checking if your insurance covers additional drivers — some policies are single-driver only
  • ✗Buying insurance from an unauthorised provider — only buy from companies licensed by the Saudi Insurance Authority

Timing & Fees

Third-party liability insurance starts from approximately SAR 400–800 per year for a standard vehicle. Comprehensive insurance typically costs SAR 1,500–5,000+ depending on vehicle value, age, and driver profile. Prices vary between insurers.

Frequently Asked Questions

Is motor insurance mandatory in Saudi Arabia?

Yes. All vehicles must have at least third-party liability (TPL) insurance to be legally driven on Saudi roads and to renew the vehicle registration (Istimara).

What is Najm?

Najm (najm.sa) is Saudi Arabia's official platform for motor accident reports and insurance verification. All insured vehicles are registered on Najm and all road accident reports must be filed through it.

Can I drive in Saudi Arabia on insurance from another country?

No. Foreign insurance policies are not valid for driving in Saudi Arabia. You must obtain a local Saudi motor insurance policy.

What happens if I have an accident without insurance?

Driving without valid insurance is a serious offence. You will be fined, your vehicle may be impounded, and you will be personally liable for all damages caused to other parties.