What type of insurance do you need for a new car?
Thinking about getting a new car? When buying a car, whether it is a brand-new car or a second-hand car, getting the right car insurance and getting your car insured quick and easy is something that could easily slip off your mind. Remember, with car ownership comes great financial responsibility. In Saudi, you need car insurance to legally drive your new car after you buy it.
The importance of car insurance
Car insurance is necessary to take care of your car and protect you financially when behind the wheel. Basically, car insurance is a yearly relationship with an insurance company and it is important to get the right insurance relationship. A lot of drivers that buy cars disregard how important insurance is. Usually, most drivers will settle with what the dealer recommends or what the previous owner used.
Tips for buying car insurance for the first time in Saudi
- Before you purchase a car, have a make and model in mind. For example, here’s why your car make and model matters for insurance.
- Learn what the basic car insurance terms mean
- Understand what type of insurance coverage you’ll need.
However, really looking into a car insurance policy whether it is for a new or second-hand car you just bought, comparing and researching:
Before buying insurance, you should take these factors into consideration:
- The insurance policy price.
- Coverage benefits.
- Add-on covers.
Nonetheless, the best way to compare car insurances and add-ons is by comparing insurance online.
Choosing the right type of insurance for your brand-new car or a second-hand car you just bought can be overwhelming with so many different insurance policies to choose from.
The only two insurance policy options in Saudi Arabia are third-party insurance and comprehensive car insurance.
Let’s break them down for you:
Compulsory or Third-party liability car Insurance:
First of all, third-party Insurance or compulsory insurance helps protect the insured person by providing coverage for the damage or losses caused to third parties only. This insurance policy protects you from financial liabilities all over Saudi Arabia. Third-party insurance (TPL) provides partial coverage which is cheaper in comparison to comprehensive insurance.
As a matter of fact, third-party insurance is usually an option for drivers that buy older second-hand cars.
Fact: Car insurance is mandatory all over the gulf and Saudi Arabia and having at least third-party car insurance is compulsory in Saudi Arabia, cars and vehicles that are not insured can lead to penalties up to 150 SAR.
Comprehensive car Insurance:
On the other hand, comprehensive car insurance policy cover damages of the third party as well as the policyholders’ insured car. The comprehensive car insurance policy provides coverage for the insured car, third-party liability, cost of emergency medical care, theft, fire-related incidents, natural disasters, and tow services. Brand new car owners typically go for comprehensive insurance for their coverage and support benefits.
Besides, comprehensive car insurance is the most favorable among drivers of new cars that come out of a showroom. Also, it’s important to remember that comprehensive insurance prices and add-on differ with the value and type of the car.
Price of the insurance policy should not be the only influence in choosing an insurance policy, you should also take into account:
Comprehensive car insurance can cover the insured vehicle even for the damages caused outside of Saudi Arabia. Please note that third party liability insurance is limited to Saudi Arabia only.
Additional coverage (add-ons)
Comprehensive car insurance can provide additional coverage that can cover several losses and protection. Add-on covers is additional coverage to your insured vehicle, which helps increase your basic car insurance cover.
All in all, it is advisable to go for third party liability insurance (TPL) if the car you are buying is a second-hand car in depreciation and a standard car brand. However, if your car is brand new, and just out of the car showroom or if you transferred the ownership of premium brand car and still comparatively new then comprehensive insurance is recommended.
How to get cheap car insurance in Saudi?
For a brand-new car in Saudi, getting comprehensive insurance is a must! And to find the best deal, use a price comparison website. It’s a smart move to shop around and compare car insurance prices and options. Take the time to explore! This will help you find the most affordable yet comprehensive coverage that suits your brand-new wheels perfectly.