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Sun 6 Nov 2016 02:43 PM

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Saudi car insurance prices said to surge 400%

Reckless driving, disruptive roadworks cited as reasons for hefty increase

Saudi car insurance prices said to surge 400%
Saudi commuters drive down a main street in the capital Riyadh. (Fayez Nureldine/AFP/Getty Images)

The cost of car insurance in Saudi Arabia has reportedly rocketed 400 percent as a result of an increase in traffic accidents, local media reported on Sunday.

Motorists have called on the authorities to intervene and bring down prices to affordable levels, while insurance providers say costs would rise further as reckless driving worsens in the kingdom, according to a report in Saudi Gazette.

It said industry experts blamed concrete blocks along the roads for a reported 15 percent rise in accidents in recent months. Persistent road works “have affected the smooth flow of traffic”, one expert was quoted as saying, while reckless driving is another significant factor.

The total number of road accidents in Saudi Arabia is expected to cross 1.1 million incidents by the end of the year, the newspaper said, citing another source who added that losses suffered by insurance companies as a result have reached 105 percent, including operational expenses.

Third party insurance premiums range between SR1,000 ($266) and SR2,000 ($533) per month, it was reported.

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Fentoni 3 years ago

$533 per month for 3rd party insurance that's insane?!? Mad Max and Domonic Toretto would get cheaper car insurance.

Wishfull thinker 3 years ago

Driving in KSA is like going to war. I have never seen anything more dangerous. The Police should remove driving licences and destroy the cars on the spot and that would improve the situation immediately

Buddy 3 years ago

I think we have to be fair to these insurance companies. The average Saudi appears to be a very unskilled and dangerous driver. This is evident on the Saudi roads, but even with the Saudi visitors in Dubai. I have yet to see here in the UAE a Saudi car driving on the road safely. If they do not tailgate, than they swerve left and right passing other traffic. It also seems many Saudi drivers cannot aim their car between the lines, instead they use 2 lanes simultaneously. If Saudi drivers do not speed, than they sit on the fast lane doing 40km/h below the speed limit blocking traffic while playing on their smartphones. They do not use indicators, park in invalid reserved parking bays, ignore road signs indicating a one way road, and it seems a majority drive cars that are lacking proper maintenance.

zakoo 3 years ago

It is clear that the comments are more personal than accurate. Most of the accidents in Arabia is caused by expats and mostly by Asians. Unfortunately, Saudis usually pay the price for such behavior.

Froggy_Goenkar 3 years ago

In one set of KSA road accident statistics, it shows that 53% were caused by Saudis. The remaining are split by various nationalities. (Another document found is an interesting read - a Thesis by a Saudi Professor correlating it to their driving behavior).

Fentoni 3 years ago

Hi Zakoo, if you're right then the insurance companies, who check the age and nationality etc would adjust their premiums accordingly. The Saudi's, who may indeed be the blameless victims, would pay a lot less then the Asian drivers who cause the accidents.