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Insurance Companies.. and the Fairness of Damage Assessment !!

Mohammed Al-Marwani

Date of publication: July 19, 2026 00:21 KSA

Vehicle insurance is one of the most important tools for preserving rights and compensating victims, but this role loses its balance when the insurance policy becomes a financial burden on vehicle owners, after insurance prices jumped to unprecedented levels, from about 500 riyals to 2,000 riyals, and in some cases reached nine thousand riyals, even for vehicles over ten years old, an increase that is difficult to consider as a normal market development.

Although the rise in insurance prices is often due to an increase in accidents or the high value of compensations, the Kingdom has made significant progress in recent years in traffic safety, through automated monitoring systems, the spread of 'Saher' cameras, road improvements, and raising traffic awareness, which are factors that contribute to reducing accidents. Among the aspects worthy of study is the mechanism for damage assessment. Many damage estimates exceed the actual cost of repair, and old cars should not be treated in the same way as modern cars. The market value of the vehicle, its age, availability of spare parts, and the quality of parts used in repair are all factors that must be considered in the assessment process. In some cases, the compensation value is calculated according to the prices of original parts, although the vehicle may have been equipped with commercial parts before the accident, or its repair is done with similar parts; which creates a gap between the actual cost and the estimated value, resulting in differences between the compensation value and the repair cost, which may be exploited in irregular ways, borne by all insured.

Insurance sectorInsurance companies