Summary of the Compulsory Motor Vehicle Insurance System for 2025

The 2025 Compulsory Motor Vehicle Insurance System is a legal document that requires vehicle owners to cover third-party liability in the event of an accident, in order to protect those affected from material and physical damage. In Saudi Arabia, the system features standardized insurance regulations and includes an obligation to compensate third parties within the limits of the policy and the stipulated conditions. Many insurance companies offer additional options for comprehensive coverage that includes benefits such as roadside assistance, replacement vehicles, and natural disaster coverage.

Summary of the 2025 Compulsory Motor Vehicle Insurance System

Objective: To cover material and physical damage that may be caused to others as a result of an accident caused by the insured driver.

Requirements: Compulsory for policyholders in the Kingdom, and it is advisable not to drive a vehicle without insurance coverage to avoid violations.

Basic coverage: Third-party insurance, which only covers damage to the other party and not injuries to the policyholder.

Renewal: The insurance policy can be renewed 14 days before its expiration date.

Transfer of ownership: Car insurance cannot be transferred between individuals, and a new policy must be issued in the event of the purchase or transfer of ownership of a vehicle.

Additional benefits (optional)

Some companies offer additional coverage options for an additional premium, including:

Roadside assistance: Towing, technical support, and fuel delivery.

Replacement car: Provision of a replacement car during the repair period.

Natural disaster insurance: Protection against damage caused by floods, storms, earthquakes, etc.

Personal accident coverage: Compensation for the driver and passengers in the event of injuries resulting from an accident.