No Claims Insurance Discounts in Saudi Arabia
When shopping for car insurance in Saudi Arabia car owners usually search for discounts or compare prices online to get the cheaper option, but there is a well-founded and consistent way to get a car insurance discount and it’s called a “No Claims Discount” (NCD).
The Saudi Arabian Monetary Agency (SAMA) instructs insurance companies in Saudi Arabia to issue discounts to drivers with a clean yearly traffic accident record (no insurance claims).
All insurance companies in Saudi must provide discounts ranging from 10% to 60 %. The percentage amount that is discounted depends on the type of insurance and how many years of no claims.
The Saudi Arabian Monetary Agency (SAMA) guidelines for the pricing criteria for the no -claims discount (NCD) directly depends on the previous years record.
How do I qualify for a No Claims Discount (NCD)?
See the below criteria to qualify for a no claims discount (NCD) in Saudi Arabia:
- No insurance claims for a year or more.
- The interruption of insurance coverage for the car should not exceed the 30-day limit.
- The car is under the name of the same owner.
- The driver does not make any physical or engine changes to the car, the car should fit the standard traffic and road safety standards.
How much of a discount will I get?
The percentage discount a car owner gets depends on the number of years of no-claims by a driver has had and the type of insurance policy a driver has whether it being Third party liability insurance or comprehensive insurance. A percentage discount of the total insurance cost is calculated and discounted from the total insurance price.
Below is the percentage discounts offered by car insurance companies in Saudi Arabia:
| Num. Years No Claims | TPL Insurance % Discount | Comprehensive Insurance % Discount |
| 1 | 10% | 15% |
| 2 | 20% | 25% |
| 3 | 30% | 35% |
| 4 | 40% | 45% |
| 4+ | 50% | 55% |
The No Claims Discount (NCD) can be obtained online when comparing and buying car insurance online in Saudi Arabia.
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