Comprehensive vs Third-Party Car Insurance in Saudi Arabia 2026: What Each Covers and Which One You Need

Saudi Arabia: Every car in the Kingdom needs insurance. Motor vehicles must carry the applicable compulsory insurance under Saudi regulations. The choice between third-party and comprehensive cover decides one thing: who pays for your own car's damage after a crash.

All vehicles on Saudi roads must have valid insurance. The decision boils down to two policies. Third-party is the legal minimum and covers third-party bodily injury, property damage, and related expenses, subject to policy conditions. Comprehensive insurance adds protection for your own vehicle against accidents, theft, and even natural disasters, subject to covered risks, deductibles, and exclusions.

Quick read:

• Third-party insurance is mandatory and covers third-party bodily injury, property damage, and related expenses up to SAR 10 million, subject to policy conditions.
• Comprehensive insurance includes third-party cover and also pays for damage to your own car, subject to covered risks, deductibles, and exclusions.
• Najm (920000560) handles accident reports for insured vehicles; traffic police handle incidents with injuries.
• Driving without insurance brings a fine of SAR 100 to SAR 150, enforced by electronic monitoring.

Quick Comparison

What is covered	Third-Party	Comprehensive
Damage to other cars and property	Yes	Yes
Injuries to other people	Yes	Yes
Damage to your own car	No	Yes
Fire and theft	No	Yes
Floods and hail	No	Yes
Legal minimum	Yes	Includes it

Coverage is subject to the applicable policy conditions, covered risks, deductibles, and exclusions.

Third-Party Insurance: The Legal Minimum

This is the Unified Compulsory Motor Insurance Policy, the minimum required by law. It pays for third-party bodily injury, property damage, and related expenses, subject to policy conditions. The maximum payout is SAR 10 million per accident, for all costs combined. It does not pay a single riyal for repairs to your own car. Simple as that.

One critical detail is often missed. The insurer has the right to recover money from you after paying a third-party claim in certain cases. These recovery grounds are separate from policy exclusions and include driving without a valid licence, driving under the influence, running a red light, or fleeing the scene of an accident without an acceptable reason.

Comprehensive Insurance: Full Protection

Comprehensive cover includes the mandatory third-party liability up to SAR 10 million. Its main purpose, though, is to protect your own asset. It pays for repairs to your car if you are at fault in an accident. It also covers loss or damage from fire, theft, and natural disasters like floods and hail, subject to the policy’s covered risks, deductibles, and exclusions. 

A deductible applies. This is the amount you pay out-of-pocket on your own repair claim. You do not pay it if the accident was 0% your fault, provided liability is established in the authorised accident report. Key exclusions exist, so read the policy. Check the applicable policy’s exclusions and any agreed extensions for activities such as racing or desert driving on unpaved roads, and for theft if the keys were left in the running car.

The Accident Claim Process

Najm handles eligible accidents within its service remit. For accidents between insured cars without injuries, Najm is the first call. Report the incident via the Najm app or by calling 920000560. An investigator will attend the scene, record statements, and issue an electronic report with fault percentages for each driver.

Traffic police handle accidents involving injury or death. For a hit-and-run, an accident involving an uninsured vehicle, or any uncertainty about which authority should attend, confirm the reporting route with Najm or traffic police. Police involvement is not limited to the circumstances listed here. After the Najm report is issued, the vehicle is taken to an approved damage estimation centre (Taqdeer), as required for the claim. The relevant accident report and damage assessment documents are submitted to the insurance company as required; the sequence can vary by case. For individual compulsory motor insurance claims, the insurance company must settle the claim within 15 working days after receiving all required documents.

Making the Right Choice

The decision isn't about car age alone. It is about financial risk. For a new or high-value car, comprehensive cover is the standard choice. Repair costs are high, and many finance or lease agreements require it. The premium protects a significant investment from total loss.

For an older car with low market value, the maths changes. If the annual comprehensive premium is a high percentage of the car's worth, third-party might be sufficient. The question is straightforward: could you afford to repair or replace the car yourself if you caused an accident?

Pre-Purchase Checklist

• Compare the deductible amount, not just the total premium. A lower premium might come with a higher deductible.
• Check the policy for repair terms. Does it specify agency repair or only approved workshops?
• Ensure every person who regularly drives the car is named on the policy.
• Review the optional add-ons, such as a replacement car or roadside assistance, and select only what you need.

The fundamental difference is clear. One policy protects others from you, while the other also protects you from your own mistakes. The real question is how much risk you are willing to carry yourself.

Also Read: Saudi Arabia's Top Four-Wheel-Drive SUVs and Pickups for 2026: Which Fits Your Needs