How to Cancel Car Insurance & Get a Refund in Saudi

Did you sell your car or end up with 2 insurance policies by mistake? Don’t worry — you can cancel your car insurance in Saudi Arabia and claim a refund for the remaining amount.

But, you must have at least 30 days left before your insurance expiry date & the refund amount must be higher than any claims paid. The process is easy and can often be done online.

👇 Let’s break down exactly what you need to know.

When can you cancel your car insurance?

Car insurance in Saudi Arabia is mandatory, and you can only cancel it if you have a good reason. A good reason would be…

• You’ve sold your car or transferred ownership. (The new owner must get their own insurance to transfer car ownership.)
• You can no longer use the car. If the car is scrap or a total loss, insurance is useless.
• Already have another valid insurance for the same car.
• Leaving the country. If the car is being exported, its Saudi insurance policy is no longer needed.
• Didn’t complete a car purchase. No car = no insurance needed.The car never became yours, so the insurance shouldn’t be either.

When you can get a refund

Canceling is one thing, but getting your unused money back requires meeting 2 rules

1. Your car insurance must have at least 30 days remaining.
2. The refund amount must be higher than any claims the company has already paid under your policy.

🖥️ How to cancel car insurance in Saudi Arabia

No matter how you got your car insurance—directly from the company or through a comparison website—your cancellation request goes straight to the insurance company.

Here’s how to cancel car insurance with some of the biggest car insurance companies in Saudi Arabia:

• Takaful Al Rajhi. Log in to your account → Our Services → Request Service → Cancel Policy
• Malath Insurance. Go to the Malath website → E-Services → Motor Insurance → Request Policy Cancellation
• Medgulf: Log in to your MedGulf account → Choose the policy you want to cancel → Click View Details → Cancel Policy
• SAICO: Email the required documents to callteam@saico.com.sa

Here’s a list of what you’ll need to send them when you ask to cancel car insurance

• A copy of your ID.
• Your IBAN, so the refund can be sent directly to you.
• Proof of the cancellation reason, such as:
  • A copy of the car registration after ownership transfer.
  • A copy of the new insurance policy.
  • A printout from the traffic authority confirming the car was deregistered.

🤔 How much refund do you get after cancelling insurance?

Refunds are not a flat rate; they’re calculated based on how much time is left on your car insurance policy. This is the formula:

(Remaining days ÷ 365) × (Policy price – admin fee)

What to do if you don’t get your insurance refund

It’s rare, but if an insurance company didn’t issue your refund, stand your ground. The law is on your side.

• Your first step is to raise a complaint to the company and reference Article 8 from The Unified Compulsory Motor Insurance Policy. It clearly states they must refund you within 3 business days via bank transfer.
• Still no luck? File a formal complaint with the Saudi Insurance Authority. They’re responsible for protecting consumers like you and will take action on your behalf.

Always compare prices online

Sometimes you’ll find cheaper car insurance price—but only after you’ve paid to renew car insurance. Be careful! Canceling usually costs you money. Even if the new insurance is cheaper, check your refund first. You might end up paying more to switch.

The smart move is to use your car insurance renewal notice as a reminder to take action. Use it to compare car insurance prices online. There are many comparison websites in Saudi Arabia that make this easy by showing you offers from different car insurance companies at once, often with exclusive discounts. This simple step can save you hundreds, and it’s the most effective way to ensure you’re always getting the best car insurance for your money.