All about leased car insurance in Saudi Arabia

Buying a car in Saudi isn’t always easy on the wallet. That’s why many people go for auto leasing: you drive the car today, pay monthly, and eventually own it.

Sounds simple, right? But once you mix in motor insurance, accidents, and end-of-contract details, things can get a little confusing. Let’s explain everything you need to know about leased car insurance in Saudi Arabia 👇

company or bank leased car, you need to know this!

1. Your installments include insurance ✅

All leased cars in Saudi Arabia come with comprehensive insurance. The amount you pay for car insurance is already included in your monthly payment.

2. What happens when the contract ends 🔄

While the lease is active, the bank or finance company handles registration and car insurance for you. When you finish your payments, you’ll need to:

• transfer car ownership to your name.
• renew car insurance yourself — and you’ll get to choose between third party insurance or comprehensive.

3. You can get some insurance money back💰

With a leased car, you’ll pay the same price for insurance every year. So, it’s a fair question to ask: “If I had no accidents, shouldn’t I get my insurance money back?” After all, your car’s value goes down while your no claims discount goes up.

The answer: yes — the rules say you’re entitled to get the extra money back if:

1. Your lease started after November 2020.
2. You didn’t have any accidents during the lease period.

4. What to do after a car accident 🚨

When you get into an accident, you must do two things:

• File a report with Najm.
• File a car insurance claim to repair the car

Here, you need to understand that the car is not under your name until you pay off everything. So, if you don’t report the accident or repair behind your lessor’s back, you could face problems later on.

5. Who can drive your leased car 👤

This is a big one. leased car insurance in Saudi Arabia only covers:

• The main driver (the person who signed the contract).
• Relatives or a personal driver, but only if they’re authorized and listed as “additional drivers.”

So, if you give the car to someone else and they get into an accident, insurance won’t pay for the accident—no matter what.

6. Your leasing contract might not include a rental car 🚙

A rental car is an optional benefit & isn’t included by default with your leased car insurance. Unless you asked and paid for it, you won’t get a rental car while your car is being repaired.

Read before you sign ✍️ save money & stress

Leasing a car in Saudi Arabia can be a smart way to get behind the wheel, but it comes with rules that aren’t always obvious. If you rush into a lease without fully understanding the terms, it’s easy to run into legal or financial headaches. To stay safe:

• Read the contract carefully, line by line.
• Ask questions to get answer about anything that’s unclear.
• Choose a financing provider that calculates insurance on a declining basis instead of a flat rate.

And when you need help

📑 Always refer to the Rules for Comprehensive Insurance of Motor Vehicles Financially Leased to Individuals to know your rights.

🤝 Contact the Saudi Insurance Authority when you face any problems.