Insurance Authority clarifies vehicle coverage regulations

The Saudi Insurance Authority has clarified the specific regulations regarding vehicle insurance coverage, emphasizing that comprehensive insurance does not automatically cover all drivers.

Under mandatory third-party liability insurance, any driver meeting legal driving requirements is covered for civil liability toward third parties. However, for comprehensive insurance, coverage for damages to the insured vehicle itself is more restrictive. For non-named drivers, coverage for vehicle damage is generally limited to the policyholder, their relatives (parents, spouse, children, and siblings), or employees under a formal contract.

Any individual outside these specific categories must be added to the policy as a ‘named driver’ according to the insurance company’s underwriting and pricing rules. The Authority warned that while a non-named driver may still be covered for third-party liability, the policyholder may not receive compensation for damages to their own vehicle unless additional coverage was specifically purchased. Vehicle owners are urged to review their policy schedules and exceptions carefully.