Third party car insurance in KSA: what’s covered & what’s not

The law in Saudi Arabia requires that every car must have third party car insurance (at least!) You need it to register or renew your car and avoid traffic violations. It’s also the cheapest car insurance you can buy in Saudi Arabia — which is why many people choose it.

But while it’s cheap, it’s also limited. Its main job is to pay for damage or injuries you cause to others after a car accident. It doesn’t do much to protect you or your car!

So before you compare third party insurance prices online, it’s important to understand what’s included — and what’s not.

Key takeaways: Third party insurance in KSA

✅ It’s legally required to register your car or renew your Istimara
✅ All third-party policies come with the same basic coverage, no matter which company you choose
✅ Some insurers offer third-party-plus with extra services like one-time car repair or free roadside assistance
✅ It covers any driver aged 18 or older with a valid driving licesne, even if they’re not the car owner.

What third party insurance does cover

If you cause an accident — and the accident reports shows you’r 25% – 100% at fault, your third-party insurance will pay for:

• Repairing the damage you caused to the others’ cars
• Injuries, disabilities, or death caused to others

This applies even if the driver wasn’t the car owner, as long as the driver is over 18 and has a valid license.

What third party insurance doesn’t cover

1. Repairing your own car

A common question: “Will third-party insurance pay to fix my car?”
The answer is no. This type of insurance only pays for damage to the other party. If your car is damaged in the accident, you’ll have to pay for the repairs yourself.

Want a policy that covers both you and others? Then comprehensive insurance is your best bet — and the best way to find a good deal is to compare prices online from different companies.

2. Fire or rain damage

Third-party insurance doesn’t cover fire or rain damage. These are only covered under comprehensive insurance, which includes protection against natural disasters like rain damage or hail.

3. Hit-and-Runs

If someone hits your car and drives off, third-party insurance won’t cover the damage either because you’re breaking the rules.

If you break the terms of your policy — like driving with an expired license or drifting — the insurance company still has to pay the other driver(s). But they can legally demand you repay them in full. Read more about it in Car insurance company wants its money back — can it do that.

4. Drivers under 18

Third party insurance cover the accident your spouse, children, or siblings if they’re 18 or older.

If a younger driver causes an accident, your insurance won’t pay for the damage — but the company will still pay the other driver(s) and then come after you for the money they paid.

🚨Third party insurance WON’T pay for every accident!

The standard third-party insurance policy includes a list of exceptions. These are situations where the company still pays the third party, but will then come after you to recover what they paid. These include:

• Running a red light
• Driving the wrong way
• Drifting or reckless driving
• Driving with an expired license

So be careful — even if the insurance pays out, you might end up paying back the insurance company for breaking the rules!

Want to know the most common exclusions? Check out this infographic👇

In summary, third party insurance may not be always enough!

Third-party insurance might be the cheapest option, but it’s also the most limited. It won’t help you if your car is damaged in a hit-and-run, by something in/on the road, after heavy rainfall — or even if you were the one to cause an accident.

If you want real peace of mind, consider upgrading to comprehensive insurance. It covers way more situations, including repairing your car, free roadside assistance, fire and theft coverage.

Worried comprehensive might be too expensive?

Here’s the good news: not all comprehensive policies are pricey. By comparing quotes from different companies — especially lesser-known or smaller car insurance companies in Saudi — you might find a great deal at a better price than you expected.

So before you renew your insurance, take a few minutes to compare your options online. You could get better deals and stay within budget.