Car Rental Insurance 2024: The Comprehensive Guide in Saudi Arabia
Buying a car can sometimes be expensive due to the high costs of regular maintenance, services, taxes, and spare parts as the vehicle ages. This is the main reason why some people avoid buying a car, making car rental the best alternative.
You may find it challenging when presented with a car rental contract filled with details about insurance, which could leave you feeling confused and unsure. So, if you plan to rent a car from one of the car rental offices in Saudi Arabia, you must know what to do and what to avoid to ensure a successful agreement that protects the rights of both parties.
What is Car Rental Insurance?
Car rental insurance refers to the insurance policies that the renter or the rental company takes out on the rented vehicles to protect the renter’s rights, which Saudi Arabia is keen on safeguarding.
The purpose of car rental insurance is to protect you financially, meaning it covers the costs of any accidents that occur during the rental period, God forbid. Most rental cars come with some form of coverage, which means you’ll pay a specified amount for any damage caused by accidents, and the insurance company will cover the rest.
Car Rental Insurance Laws in Saudi Arabia
The regulation of car rentals in the Kingdom falls under the Saudi Ministry of Transport, which issued the regulations governing car rental activities and rental intermediaries, outlining the obligations of both the renter and the rental company and how rental licenses are granted.
The Saudi Public Transport Authority has emphasized the implementation of the unified electronic contract for car rentals to protect the rights of all parties involved in the contractual process, whether the renter or the lessor.
Car Rental Insurance
Is Car Rental Insurance Mandatory?
Yes, the Saudi Ministry of Transport requires all car rental offices to provide insurance that covers at least third-party liability. However, they are not obligated to offer comprehensive insurance. Therefore, the Ministry encourages car renters to ask rental offices to clarify the type of insurance covering the vehicle and to record it in the contract, along with any amounts the renter may be liable for in the event of an accident.
Generally, car rental companies automatically cover the minimum required insurance for car accidents. However, if you want more coverage for a road trip or a long-term lease, you may need to purchase additional car insurance.
Types of Car Rental Insurance
Make sure to read all the details in the insurance contract to understand what is covered and what is not. For example, the insurance may cover external damage to the car body but not the replacement of the windshield.
Here are the types of insurance specific to rental cars and the details of each type:
1. Third-Party Liability Insurance
The renter is responsible for all costs of repairing the rented car, while third-party liability insurance only covers damage to other parties. This type of insurance is mandatory for all rental cars in Saudi Arabia.
2. Non-Comprehensive Insurance with Deductible
Collision Damage Waiver (CDW) is an optional insurance policy often offered for car rentals with a certain discount. The cost of this insurance varies depending on several factors, including the type of rented car and the duration of the rental. This insurance typically covers damage resulting from loss or damage to the rented car but is unlikely to cover bodily injuries caused by a car accident.
For example, if the customer caused the accident, the car rental company would ask the customer to pay a deductible, which is the amount agreed upon when signing the contract with the rental office. If the repair costs exceed the deductible, the customer only pays the deductible, and the insurance company covers the rest.
3. Additional (Comprehensive) Insurance
In this case, the renter is exempt from paying any amount in the event of an accident. Some car rental companies offer an additional comprehensive insurance option that expands damage coverage. This means that you are not required to pay any amount in the event of an accident, and the insurance company will take full responsibility for it. It also covers the windshield, tires, undercarriage, and more.
Car Rental Insurance
Frequently Asked Questions About Car Rental Insurance
Which insurance should you choose when renting a car from a company or office?
Insurance names and terms vary from one rental company to another, so read the description and content of each option carefully and compare the types of insurance coverage before choosing. For peace of mind, consider purchasing additional insurance that ensures your deductible is as low as possible in case of any damage to the car.
What situations are excluded from rental car insurance?
- Lack of a report from Najm or the traffic police proving the accident occurred.
- Driving under the influence of alcohol or drugs.
- Driving the car by someone not authorized in the contract.
- The accident occurring after the contract period has ended.
- The accident occurring outside the Kingdom of Saudi Arabia.
- Using the car for purposes other than those specified in the rental agreement.
- Theft of the car due to the renter’s negligence or leaving it running unattended.
- Accidents resulting from traffic violations.
How should you legally act if an accident occurs while using a rental car?
- Contact Najm to obtain a report on the accident.
- Document the accident and damage with photos.
- Notify the car rental company and ensure the car is returned immediately.
- Review the insurance terms in the car rental contract.
Is comprehensive insurance mandatory at car rental offices?
The Public Transport Authority confirmed that comprehensive insurance is not mandatory at car rental offices, noting that the minimum required insurance is third-party liability.
Does the driver’s age affect car insurance rates in Saudi Arabia?
Age is one of the main factors influencing insurance costs, as insurance companies tend to consider younger drivers high-risk due to their lack of driving experience, leading to higher insurance rates for this age group compared to older, more experienced drivers.
How much is car insurance in Saudi Arabia?
Insurance prices range from SAR 680 to SAR 8,200 depending on several factors, in addition to the choice of the insurance company.
What is the expected duration to complete accident procedures?
The procedures take 7 to 10 working days.
Will insurance fees be charged to my credit card?
Many car rental companies require the customer to have a refundable deposit on their credit card, debit card, or in cash. This deposit is used to cover expenses that the customer may incur, such as late return of the car, extension of the rental period, or traffic fines. If the deposit is not exhausted by the time the car is returned, it will be refunded to the customer.
Choose Peace of Mind, Rent Your Car with Yahma
The coverage benefits provided by Yahma Car Rental depend on the selected insurance package, which aims to ensure customer satisfaction and peace of mind. Yahma offers vehicle insurance that protects you and covers all bodily and material damages resulting from a traffic accident, God forbid.
Yahma Car Rental offers non-comprehensive insurance with a deductible. In the event of an accident where the renter is at fault, the renter pays a maximum of SAR 1,750, including VAT.
Yahma Car Rental offers the cheapest car rental rates while showcasing a large fleet of luxurious modern cars equipped with the latest safety and security technologies for all types of cars, catering to all tastes and occasions. Yahma Car Rental provides multiple ways to book a car to save time and effort for its customers. You can book a car through the website, the app, or by visiting one of our branches across the Kingdom.
