Car Insurance Terms in Saudi Arabia Explained Simply

This is the offer from the insurance company that details the coverage, features, and the final price you will pay for your car insurance.

Example: When enter your details to compare car insurance prices online, you receive multiple "**Quotes**" from different companies to compare offers.

A document issued by the Saudi Insurance Authority that sets the mandatory, basic rules and requirements every company must follow when selling an insurance product.

Example: The conditions for Third-Party insurance are the same everywhere because the Authority requires all companies to follow the **Unified Policy** text.

The table attached to your policy that lists all the specific data about you (the policyholder) and your car.

The unique code used to identify your policy in all claims and interactions with the insurance company.

An extra document added to the original policy to modify or include new coverage.

Example: If you add "Roadside Assistance" after getting your car insurance, the company will issue an "**Endorsement**" to document this change.

This is the value you and the insurance company agree your car is worth when you buy car insurance. When the car is declared a "total loss," this is the maximum amount of money the insurance company will give you to replace it.

The specific amount of money you pay to buy your car insurance.

A portion of the insurance company's extra profits that is returned to customers, usually as a discount when they buy or renew car insurance.

A reward from Najm for staying accident-free for one year at least. The longer you go without claims, the bigger the discount.

A core feature of comprehensive insurance is the coverage for damages caused by severe weather, including floods, hail, and storms.

An extra feature that allows you to claim compensation if your car is damaged by fire or is stolen.

An optional feature that covers bodily injuries resulting from an accident for the driver, or for the driver and passengers.

An add-on that gives you the right to have your car repaired at the manufacturer's Authorized Dealer Service Centers instead of the repair shops approved by the insurance company.

Additional coverage under which the insurer pays a daily amount for you to rent a temporary replacement car while your insured car is being repaired after a covered accident.

An optional feature in Comprehensive Insurance that ensures you are covered for damages if you have an accident outside Saudi Arabia.

Removes minimum or maximum age limits for the driver. This matters because some insurance companies will reject covering accidents if the driver's age doesn't match their standard age limit.

Any event that causes damage to a Third Party resulting from the use, operation, or presence of your car (e.g., from driving, explosion, fire, or being parked).

The official step taken by the policyholder or the injured party to formally ask the insurance company for compensation after a covered accident.

The money the insurance company is required to pay, up to the maximum limit of your policy.

Any person or property (excluding the insured car and its passengers) that is harmed by your insured vehicle.

The official document issued by Najm or the Traffic Police detailing the accident, who was involved, and the percentage of fault assigned to each party.

A report from an accredited center that details the extent of the damage and the estimated cost of repair for the car.

Physical damage or destruction caused to the property of others.

Physical harm, including death, or permanent/temporary total or partial disability.

When the estimated cost to repair the car is higher than a specified percentage of the car's Insured Value.

When repairing the car is physically or practically impossible, regardless of the estimated cost.

The out-of-pocket amount you must pay the insurance company when filing a comprehensive claim. This is calculated based on your fault percentage in the accident.

Any person who regularly uses the car alongside the main policyholder. For financed/leased cars, insurers often require that any regular user be named, as coverage may only apply if the driver is listed in the Policy Schedule.

The insurance company's right to recover money it paid to a Third Party from the insured person if the insured clearly violated the terms of the policy.

Any essential piece of information that could influence the insurance company's decision when setting the price of your car insurance.