How To Get The Best Car Insurance Rates

Insurance may not be the first thing on your mind when you’re getting a new car. But no car owner can escape the necessity of insurance. It’s financial protection for when the unthinkable happens, like flooding or accidents.

Car insurance in KSA is mandatory, but that doesn’t mean you should pay more. Although, at one time, auto insurance costs in Saudi Arabia were considered the highest in the Gulf and among the Arab states. On average, people in KSA pay between SAR 1,500 ($399) to SAR 8,000 ($2,131 ) for comprehensive auto insurance.

The rates are not the same for everyone.

Insurance companies in Saudi Arabia apply a variety of standards to determine your policy rate, from the type of vehicle to the driver profile. To manage or even cut car insurance costs, learn about the factors that companies use when creating quotes for policies.

Factors That Affect Insurance Rates

What your friends or family members pay for their auto insurance will not be the same rate you’ll be paying. Companies factor in your age, the type of policy you’ll be getting, and the value of your car.

Here’s a list of criteria.

Type of Policy

You can choose from third-party liability (TPL) and comprehensive car insurance. TPL is compulsory since it protects the insured by providing coverage for the loss or damage to a third party. It’s only partial coverage; it doesn’t cover the damage to the insured person’s vehicle, which means it’s more affordable than comprehensive coverage.

Comprehensive coverage, on the other hand, covers the third party and the insured in the event of an accident. That means it’s pricier. Other than third-party liability, this type of policy can cover towing and storage expenses, roadside assistance, fire and theft, and damage from natural disasters (e.g., flood, hail, and lightning) as add ons.

The Add Ons

A comprehensive car insurance leaves room for additional coverage, or add-ons. Every add on can also increase your insurance rate.

These can cover the following:

• Geographical extension (if you travel frequently outside of Saudi Arabia)
• Car rental (because you may need to use a temporary vehicle after yours has been in a collision)
• Medical expenses (including your passenger, agency repair, and personal accident)
• Towing and storage expenses
• Roadside assistance
• Fire and theft
• Damage from natural disasters (e.g., flood, hail, and lightning)

Car Value

A luxury car typically means higher insurance rates since repairs will likely cost more. Specialty parts are also going to be more expensive with high-end vehicles, and that can add to your insurance cost.

Recent events, however, have prompted insurance firms to raise the rates for Asian vehicles.

People driving Chinese-made vehicles can expect a 26% increase in their premiums. Drivers with South Korean and Japanese cars will see a raise of 25%. In comparison, drivers with American- and German-made cars will see a 9% drop in their insurance cost.

According to insurers, the increase is due to the number of Asian vehicles getting higher repair costs after the devastating floods in April 2024.

Traffic Record

How’s your driving record? If you’ve been following the traffic rules, have not received any ticket for violations, or have not been in any accident, your spotless record can mean a more affordable rate.

A clean traffic record also means a no-claim discount, which means you get a discount on your insurance if you haven’t filed any claims. The discount rises as you continue to not make claims, from 10% to 15% for a year without claims, and 35% for three years without claims.

Reckless drivers can expect to get higher auto insurance rates for obvious reasons.

Driver’s Age

Insurers deem new drivers as being more prone to accidents than experienced drivers. As a result, companies provide higher insurance rates to new drivers.

Deductible

A deductible on car insurance is the amount you pay out-of-pocket before the insurer covers the damage. The higher the deductible, the lower the insurance rate. Conversely, a lower deductible means a higher insurance rate.

Business Use

When you use your personal car for a side job, like delivery or rideshare, your insurance cost may increase. You’re earning extra income from your second or third job, but you’re also going to pay more for auto insurance.

The level of risk increases when you use your car for business. You’ll be driving more often and carrying more people in your vehicle. Insurance companies consider this risk when quoting your policy.

Tips for Affordable Auto Insurance Costs

The best way to get a good price on your car insurance is to shop around. Compare prices and read the fine print. Insurance shopping may not be as fun as car shopping, but it’s a necessity that’ll help you save money and be protected in the event of an incident.

Here are more tips to help you save money on car insurance.

• Increase your deductible. You may pay more out of pocket, but it could help drive down the price of your insurance. Talk with your insurer first before determining an amount. Learn just how much you can save if you were to raise your deductible.
• Go with TPL rather than comprehensive if you’re driving an old car. It doesn’t make financial sense to get full coverage when your vehicle’s market value is low.
• When shopping for a new car, shop for insurance rates, too. The insurance rate on one car may sway your decision to buy the other car on your list. Maybe a hybrid vehicle will get you a more affordable insurance rate than a gas-guzzling SUV.
• Drive better. You might even want to go back to school and learn defensive driving. By improving your driving skills, you’ll be able to pay attention to the road and know exactly what to do to avoid a collision.

Car insurance is a necessary financial protection for vehicle owners. When you get on the road and know you have sufficient coverage, you can enjoy driving even more. And knowing you don’t have to pay a premium will make each drive all the sweeter.