4 Effective Ways to Save on Car Insurance in Saudi
Generally speaking, the pandemic has touched every aspect of life, and mostly not for the better. The situation has also sparked a major decline in car sales as well as car insurance purchases. While life returned to some sort of ‘normality’ in many countries, the financial situation still worries the minds of the majority. In this light, more Saudis grew wiser financially and adopted cost-saving solutions. So, if you are searching for smart, effective, and fairer ways to get the best car insurance prices in Saudi – This one is for you!
How Can I Save on Car Insurance in Saudi?
Does canceling or not renewing your car insurance sound tempting now? Save yourself the trouble, because having car insurance is mandatory in Saudi. Besides, canceling your car insurance is only made possible with special conditions. Consequently, if you are caught driving without insurance in Saudi Arabia, you’ll be fined between 150 to 300 SR. So, your best choice is to look for effective ways to reduce your car insurance rates without getting in deep trouble!
Here is a list of ways to get lower car insurance rates :
- Use an advanced car insurance comparison website based in Saudi.
- Chose the right and not all add-ons.
- Switch to Third Party Cover.
- Take wakeel’s advice on cost-saving solutions
Let’s get into detail!
How Can I Get Fair Car Insurance Rates?
As you will quickly learn, insurance relies on statistics to determine the risk factors for each policy. Accordingly, prices can go up or down. Most insurance companies focus on your car, age, and driving history. Evidently, Insurers classify young drivers under 21 among the highest-risk groups, because they’re more likely to be involved in accidents. Similarly, insurance companies associate high mileage with high risk. In other words, the fewer miles you travel, the less likely you are to cause/ be in accidents.
Isn’t it fair, then, to get a lower price if you spend less time on the road? Yes! that’s why we advise you to use an advanced platform to find the right insurance according to the distance you travel.
How does mileage impact car insurance?
Your car’s mileage is one of the factors that insurance companies consider when determining your car insurance rate. The more miles (or kilometers!) you drive, the higher your rate will be. This is because insurance companies believe that drivers who drive more miles are more likely to get into an accident.
Let’s break down how mileage impacts car insurance:
- First off, more kilometers driven equals more risk exposure. Simply put, the more time you spend behind the wheel, the higher the odds of getting into an accident. Insurance companies take this increased risk into account when calculating how much you should pay for insuring your car.
- Also, more kilometers driven means more wear and tear on your car. Driving your car extensively leads to increased wear and tear, making it more prone to breakdowns and accidents. These factors can hike up your insurance costs.
TPL Vs Comprehensive, which one is cheaper?
- Third-Party Insurance: This is the minimum insurance coverage you need (also called compulsory insurance in Saudi) it covers damages caused by your vehicle to others (people and vehicles) only.
- Comprehensive Insurance: Whereas the second type covers all accidents damage and loss you are involved in; like fire, theft, natural disasters, and many other extensions and add-ons.
If you want to reduce the cost of car insurance to a minimum, switch to TPL insurance! Compulsory insurance (TPL) provides basic car insurance coverage and ensures you get lower prices. However, before switching to liability-only coverage, it’s better to research your car’s value first and the average repair costs for your car model; to see if you could afford repairs on your own.
Can I Get Better Rates for Comprehensive Cover?
Who said comprehensive is exclusive? Comprehensive insurance could still be within your budget, all you have to do is re-evaluate your needs! In the meantime, consider taking out extra add-ons like fire, theft, agency repairs, or geographic extension cover.
Lower your coverage to lower your rates
When thinking about how to save on car insurance, removing extra add-ons you don’t need can be a simple solution. In Saudi, Comprehensive Insurance Rules set an obligation on insurers to offer add-ons before issuing the policy. These add-ons include the following:
- Rental car coverage
- Roadside assistance
- Bodily injury & Death liability
- Geographical extension (Claiming for a car accident abroad)
- Additional driver
Finally, use a price comparison website to shop around!
Worry not, if you don’t have the time to comb through dozens and dozens of different policies to find a budget-friendly policy! A price comparison website can make it 10 times easier to find cheap car insurance in Saudi. We guarantee you will get access to exclusive deals, discounts, or special offers from insurers that might not be available elsewhere!