No Claims Insurance Discounts in Saudi Arabia

No Claims Insurance Discounts in Saudi Arabia

NCD is a percentage discount a car owner gets in Saudi depends on the number of years of no-claims by a driver has had and the type of insurance policy a driver.

A penny saved, is a penny earned. Learning how to shop wisely is always a good idea and it’s never too late to begin saving some money. Especially now, that the Saudi government has announced that the Value Added Tax (VAT) rate will increase to 15% from the current 5%, and it is compulsory to insure all cars in the Kingdom of Saudi Arabia.

Speaking of saving on car insurance, there are many things one can do to cut costs down and stretch their budget a little further — Read on for some money-saving tips!

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What is NCD?

First and foremost, a great tip is to keep offers on your radar before you make a purchase. Seasonal discounts, which are licensed by the Saudi Ministry of Commerce, are used all the time to grant consumers valuable discounts and offers throughout the year.  Another great way is to shop online. There are plenty of exclusive offers and discounts for those who shop online, all you have to do is comb through! Additionally, an absolutely guaranteed way, to reduce expenses reduce the total cost of car insurance is to take advantage of your clean driving record to qualify for a “No Claims Discount” (NCD).

How do I qualify for a No Claims Discount (NCD) in Saudi?

As a matter of fact, the Saudi Arabian Monetary Agency (SAMA) instructs insurance companies in Saudi Arabia to issue discounts to drivers with a yearly driving history free of any accidents or insurance claims. Accordingly, all insurance companies in Saudi must provide discounts ranging from 10% to 60 %.  Moreover, the percentage amount that is discounted depends on the type of insurance and how many years of no claims.

The Saudi Arabian Monetary Agency (SAMA) guidelines for the pricing criteria for the no -claims discount (NCD) directly depends on the previous years’ record.

See the below criteria to qualify for a no claims discount (NCD) in Saudi Arabia:

  • To start with, make sure no insurance claims have been made for a year or more.
  • Secondly, the interruption of insurance coverage for the car should not exceed the 30-day limit.
  • Thirdly, the car is under the name of the same owner.
  • Finally, the driver does not make any physical or engine changes to the car, the car should fit the standard traffic and road safety standards. 

How much of a discount on my car insurance will I get?

As previously stated, NCD is a percentage discount a car owner gets in Saudi depends on the number of years of no-claims and the type of insurance policy a driver. and the type of insurance policy a driver has whether it being Third-party liability insurance or comprehensive insurance. Basically, a percentage discount of the total insurance cost is calculated and discounted from the total insurance price.

Below are the percentage discounts offered by car insurance companies in Saudi Arabia:

Num. Years No Claims TPL Insurance % Discount Comprehensive Insurance % Discount
1 10% 15%
2 20% 25%
3 30% 35%
4 40% 45%
4+ 50% 55%

To sum it all up, make sure to compare costs before making a purchase buy–shop around for the best car insurance offers and compare car insurance prices online.

It is also worth noting, that Najm services enable all consumers to avail to the No Claims Discount (NCD) even when they decide to switch car insurance provider. In addition, Najm will issue a certificate to consumers that proves their coverage history and the lack of claims made under their previous insurer.