Saudi car insurance prices said to surge 400%

The cost of car insurance in Saudi Arabia has reportedly rocketed 400 percent as a result of an increase in traffic accidents, local media reported on Sunday.

Motorists have called on the authorities to intervene and bring down prices to affordable levels, while insurance providers say costs would rise further as reckless driving worsens in the kingdom, according to a report in Saudi Gazette.

It said industry experts blamed concrete blocks along the roads for a reported 15 percent rise in accidents in recent months. Persistent



road works “have affected the smooth flow of traffic”, one expert was quoted as saying, while reckless driving is another significant factor.

The total number of road accidents in Saudi Arabia is expected to cross 1.1 million incidents by the end of the year, the newspaper said, citing another source who added that losses suffered by insurance companies, as a result, have reached 105 percent, including operational expenses.

Third party insurance premiums range between SR1,000 ($266) and SR2,000 ($533) per month, it was reported.