Cancelling your car insurance-Everything you need to know
Getting the right car insurance policy in Saudi Arabia and can be confusing. On the other hand, trying to secure a refund from an insurance company in Saudi Arabia can be a lot more confusing. So, wakeel team has broken cancellation procedures down for you:
Car insurance policies are designed to protect you and your car in the wake of a car accident. Car insurance in Saudi Arabia can help take the financial burden off your shoulders in exchange for premiums paid annually to benefit from Third Person Liability (TPL) car insurance or comprehensive car insurance to cover the costs of expensive claims when an accident occurs.
If you are looking to save more money. Or perhaps, still weighing the options, the advantages, and disadvantages, and comparing car insurance prices. We understand that finding the right car insurance policy in Saudi Arabia can be confusing. The key is to use a Saudi car insurance price comparison platform that allows you to locate the best car insurance deal by checking hundreds of detailed quotations from different car insurance providers in Saudi Arabia. Wakeel might take you by surprise and offer you a tailor-fit car insurance policy you wish to buy at a much lower price, saving you money!
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When can I cancel my Car Insurance in Saudi?
Based on the compulsory insurance policy issued by The Saudi Arabian Monetary Agency (SAMA) regarding the cancellation clause, you can cancel your Saudi car insurance and get a refund in the following scenarios:
- When your car registration is canceled.
- If you transfer your car ownership to someone else, e.g the car is sold or transported overseas.
- When you replace your current policy with another valid Saudi car insurance policy.
Contrary to common belief, you don’t have to wait 30 days to re-shop for a new car insurance policy. You can change your car insurance company or policy, send a cancellation request to the car insurance company. Next, when the company approves your request, they will start calculating your refund amount. Finally, you will receive your refund directly into the International Bank Account Number (IBAN).
How can I cancel my car insurance in Saudi?
You can ask your insurance company to cancel your policy, and get a refund if you:
- Directly calling the insurance companies customer call center.
- Online through the insurance website
- Visit your closest insurance branch.
Saudi Central Bank (SAMA) instructs all Saudi car insurance to refund the remaining balance amount. Accordingly, insurance companies calculate the refund by “subtracting the elapsed days from the total policy term (in days) and then dividing the result by the total policy term. Then, multiply the result by the insurance premium, minus administrative fees (a maximum of SAR 25)
In other words, or rather simplified formulas: (365 − elapsed days) /365 × insurance premium less administrative fees (a maximum of SAR 25) = return premium”
As a result, car insurance companies will deposit the refund amount payable for the uncovered period directly to your bank account in Saudi Arabia.
Coverage provided by the third-party insurance policy
During the validity period of the insurance policy, and if any of your claims are still pending with the insurance company. Saudi car insurance companies will still compensate the third party for any losses or damage including the expenses that are required to repair the damage arising from traffic accidents caused by the insured car.
Car insurance cancellation documents:
- Copy of the Insurance Policy
- Copy of your Personal ID.
- Policy Number.
- Copy of the Vehicle Ownership Transfer.
All parties that include the vehicle, the insurance company, and the insured should be bound by the provisions of the insurance policy regarding the cancellation.