Professionals in the Saudi insurance industry are expecting lower motor insurance rates in the upcoming months. This follows the General Department of Traffic's announcement regarding the introduction of electronic monitoring of motor insurance violations.
Starting 1 October 2023, motorists who fail to insure their vehicles will be fined between 100 and 150 SAR (26.6 and 40 USD). This decision is expected to increase the number of motor insurance policies underwritten.
It should be noted that the high cost of motor insurance in Saudi Arabia [4] is due to a number of factors, including the fact that 50% of vehicles are uninsured and the ever-growing number of traffic accidents.
Read also | Updates to the unified compulsory motor insurance policy [5]