Request a refund for your car insurance in Saudi Arabia
In some situations, you might be able to get a refund for your car insurance — sometimes up to 90% of what you paid! But how much money you get from your car insurance depends on the reason for the refund.
👇 We’ll look at each of those in a little more detail, so you can find information that’s relevant to you.
When do you get a car insurance refund?
In Saudi Arabia, you can ask for a refund from your car insurance company in 2 cases:
- After you complete your car installments. This works if you
- signed your car lease after November 1, 2020.
- paid all car installations on time (or early!)
- haven’t had any car accidents or made any insurance claims.
- After you cancel your insurance. But only if
- there are 30 days or more until your car insurance expiry date.
- didn’t make your insurance pay for a claim that costs more than the money you’d get back.
How to cancel car insurance in Saudi?
The steps to cancel insurance are more or less the same for most car insurance companies in Saudi like Takaful Al Rajhi, Tawuniya, etc— you just need to:
Search for “(cancel insurance + company name)” online → Fill out the form and state why you want to cancel → Attach: your policy number, your IBAN, a copy of your ID or Iqama, and proof of why you’re canceling. The whole thing should only take a few minutes.You can cancel your car insurance for reasons like
- Selling the car.
- Car ownership tranfer to someone else in the family.
- Buying 2 insurance accidentally for the same car.
- Switiching car insurance company.
- The car is totaled and can’t be used anymore.
- Exporting the car out of Saudi Arabia.
How much money do you get back from your car insurance?
The amount isn’t the same for everyone. It really depends on your situation and the calculation method. For example, if you cancel your insurance, the refund amount is based on the days remaining until the expiration date.
But, if the car was leased, you’ll receive the difference between the insurance price before using your Najm no claims discount and after the discount for each year.
Here’s how to do the math 👇
For insurance cancellation
Refund = (Remaining Days ÷ 365) × (Insurance Price − Admin Fees)
Example: If you cancel car insurance after only one month, you should get about 90% back. If you cancel after 6 months, you might get about 50% back.
⚠️ The most they can charge for admin fee is 30 SAR
For car insurance refund after finishing installments
The refund is based on how much you saved each year with your Najm no claim discount.
Example:
- Year 1: Original price = 4,000 SAR
After Najm 30% discount = 2,800 SAR
→ Price difference: 1,200 SAR- Year 2: Original price = 3,200 SAR
After Najm 40% discount = 1,920 SAR
→ Price difference:: 1,280 SARRefund = (Price difference from year 1 + Price difference from year 2 + and so on.)
Wait 2-3 days to get your insurance money back
For people who cancelled their car insurance, you should get your money back within 3 working days after the company receives all the required papers.
But if your car was leased, expect a longer wait! It usually takes about 30 working days after the lease ends for you to get the refund.
What if you don’t get your money back?
All car insurance companies in Saudi Arabia have to follow the Insurance Authority (IA) rulebooks – and therefore, you can make a complaint to the insurance company and point out the rule that proves your right to a refund.
If you get no result, then file a complaint against the insurance company with the Insurance Authority through their website.
Need new car insurance?
There are many reasons why people sometimes need to cancel their car insurance in Saudi Arabia. Some people have sold their cars. For others, they simply found cheap third party car insurance online.
Try using a comparison site to easily check prices from different insurance companies and find the best car insurance in Saudi online.
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