Najm No Claims Discount in Saudi Explained

To get the best car insurance rates in Saudi Arabia, there are two guaranteed ways — comparing prices & getting a no-claims discount. What is a no-claims discount you ask? For every year you have car insurance and don’t make a claim, you’ll get a percentage reduced from the cost of your car insurance renewal, and this is also known in Saudi as Najm no claims discount.

A no-claims discount could help you get cheaper car insurance in Saudi – up to 60% of the full price! Read on to find out how it works and how much you could save. 

What’s a no-claims discount?

A no-claims discount (NCD) is a discount you can apply when you renew your car insurance in Saudi. All you have to do to get this discount is go for at least a full year without filing a claim. This discount increases over time. The longer you go without getting into accidents, the more your discount will be.

Is a no claim discount the same as Najm discount?

Yes, they’re just different names for the same thing. No claims discount is more accurate and is the term used by car insurance companies in Saudi Arabia. Sometimes, they will use the acronym NCD.

How much cheaper will my car insurance be with a Najm no-claims discount?

Najm no-claim discount is based on the number of years you’ve driven without claiming.

Let’s say that your third-party insurance costs 725 riyals and you’ve been accident-free for three years (earning a 30% discount), you’ll only pay 507.50 riyals — a saving of 217.50 riyals!

Najm No-claims discount builds up over time

Your No claims discount increases each year you don’t make a claim. You’ll get a starting percentage after your first year, and it can increase each year you remain claim-free, up to a maximum limit.

👇 Here’s a table showing how your NCD can increase each year for Third party liability and comprehensive car insurance in Saudi.

Want a no-claims discount (NCD) on your car insurance in Saudi Arabia?

To be eligible for a no claims discount (NCD) in Saudi Arabia, you need to meet the following criteria:

1. Drive safely! Remember the longer you go without getting into an accident, the bigger your discount gets.
2. Renew your insurance on time. Having a gap between your car insurance expiry date and renewal date can cost you your discount.
3. Keep all your cars covered. Make sure all cars under your name have active insurance policies. If you’re no longer using a car, you might want to consider transferring ownership, or officially writing it off.