Motives to get third party liability Insurance in Saudi

Motives to get third party liability Insurance in Saudi

Almost half of the cars in Saudi are uninsured! Adel Al Issa, the official spokesperson for the Saudi insurance sector, said that the number of insured cars does not exceed 50% of the entire fleet of private cars on Saudi roads, though motor insurance is mandatory. For many uninsured drivers, the decision to drive without car insurance often stems from a mix of reasons that range from financial constraints to misperceptions about the necessity of insurance. Many consider it as a kind of luxury or an addition to life rather than a necessity and a basic part of car ownership. And for those who can’t afford to get a comprehensive insurance policy, a basic TPL cover is still an option!

What is Third-Party Liability Insurance?

Third-Party Liability Insurance refers to the policy that covers losses and damages you might cause to another person or their property. This type of insurance is also known as “mandatory insurance” because Saudi Arabia’s traffic regulations mandate it for all cars. It aims to protect both the community and individuals from significant financial burdens resulting from road accidents in Saudi Arabia.

Quick facts about TPL Insurance in Saudi

  • TPL is cheaper, but comprehensive insurance offers wider protection.
  • Coverage is limited to compensating individuals affected by the insured vehicle for damage caused. This means TPL doesn’t cover repair costs for the vehicle or bodily injuries caused by an accident.
  • TPL covers the financial responsibility of the insured (the driver of the insured vehicle) towards third parties up to 10 million Saudi Riyals for repairing the vehicle, medical treatment, injuries, and indemnities.
  • Additional benefits can be added to TPL for an extra fee, such as roadside assistance in case your car experiences a breakdown and immediate help is needed.
  • TPL does not cover compensation for natural disasters like floods and rain.
  • You can compare prices and details of TPL policies from various companies through comparison websites.

How much does TPL car insurance cost in Saudi?

The cost of TPL in Saudi Arabia depends on several factors, including the driver’s age, driving experience, residence, claims history, and type, and model of the car, among others. To get an accurate and personalized price, using online car insurance comparison sites is essential. These sites help discover available options and compare prices among companies for suitable insurance.

What does TPL cover?

Third-Party Liability (TPL) insurance in Saudi Arabia covers:

  • Bodily injuries: Compensation for medical treatment, medical expenses, and indemnities for the injured.
  • Property damage: Covers repair or replacement costs for third-party property damaged in an accident, such as their cars or other affected belongings.
  • Legal costs: This covers legal representation and defense costs if the insured person is sued due to an accident.

TPL insurance benefits in Saudi

  • Ensures compensation for affected individuals and properties even if the car owner cannot afford the costs.
  • Contributes to protecting the community and individuals from significant financial consequences resulting from car accidents.
  • TPL is a legal requirement for all vehicles in Saudi Arabia. This means you cannot register or renew a car’s registration or transfer ownership without valid insurance.

TPL vs comprehensive insurance in Saudi

The difference between third-party liability insurance and comprehensive insurance lies in the coverage and protection they offer:

TPL insurance

Protects third parties only, covering the civil liability for damages caused by the driver to other individuals or their properties in an accident where the driver is deemed responsible. Does not protect the driver or their vehicle in case of damages resulting from an accident or incidents outside the accident, such as theft, fire, or natural disasters.

Comprehensive insurance

  • Provides protection for third parties and comprehensive coverage for the driver and the car.
  • Covers damages from car accidents, theft, fires, natural disasters, and other events apart from accidents.

In conclusion, choosing the right type of insurance depends on your needs and budget. If you own a new or expensive car, you might prefer comprehensive insurance to cover damages in case of an accident. If you’re concerned about your liability, you might opt for TPL insurance. You can determine the suitable insurance type for you by consulting insurance comparison websites, which will recommend the best options based on your driving needs and insurance requirements. Compare prices using a price comparison website and get the best offer today!

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