Last updated: 26 October 2026
The no claim discount (NCD) in Saudi Arabia cuts your car insurance premium for every year you keep continuous cover without a claim. It starts at about 15% after one claim-free year and can reach 60% after five years or more. Najm keeps the record for every vehicle in your name, and insurers apply it automatically when they quote.
This guide explains how the no claim discount is calculated, what reduces or cancels it, how to check your NCD on Najm and how to protect it when you sell a car, switch insurer or let a policy lapse.
How the no claim discount works
The Saudi Central Bank first required insurers to give a no claim discount on individual motor policies from April 2017. In 2023 Najm, working with the regulator, upgraded the eligibility service so that a clean record can earn up to 60%. Insurance is now supervised by the Insurance Authority.
- It follows you, not the insurer. Najm holds the claims and cover history linked to your ID or iqama, so every insurer sees the same record.
- It covers all your vehicles. Lapses and claims on one car can affect the discount on the others.
- It applies to third-party and comprehensive policies. The saving in riyals is larger on comprehensive cover because the premium is higher.
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How much discount you can get
| Claim-free record | Typical discount | Notes |
|---|---|---|
| 1 year | About 15% | The starting level since the 2017 rules |
| 2 to 4 years | Rises each year | Najm and your insurer quote show your exact rate |
| 5 years or more | Up to 60% | The ceiling announced by Najm in 2023 |
Example: if a third-party policy is quoted at SAR 1,500 before the discount and your record earns 30%, you pay SAR 1,050. Rates differ between insurers, so compare quotes with your NCD applied. To see how the premium fits your monthly budget, add it to our cost of living calculator.
What reduces or cancels your NCD
| What happens | Effect on your discount |
|---|---|
| Claim paid where you were mainly at fault (liability over 50%) | Cut by the equivalent of two years, on all your vehicles |
| Claim where your liability was under 50% | No effect |
| Accident with no claim made | No effect |
| Policy renewed within 30 days of expiry | Discount kept |
| Car uninsured for 30 to 180 days | Discount lost on that car for one year |
| Car uninsured for more than 180 days | Discount drops to 0% on all your vehicles |
| A car registered to you left uninsured | Can block the discount on all your vehicles |
| Not named as owner or driver on any policy for 12 months | Discount lost |
To move up to the next level, the policy needs to have run for about 10.5 months of its year. If you sell a car, transfer the ownership and cancel or move its insurance so that no uninsured car stays in your name.
How to check your NCD on Najm
- Open the Najm app or the Najm website.
- Log in with your national ID or iqama number and the code sent to your phone.
- Open the eligibility service to see your no claim discount and the vehicles it covers.
- Compare it with the rate shown in your insurer's renewal quote.
- If the record looks out of date, contact Najm customer service before you pay for the new policy.
Before renewing, also check vehicle insurance validity for every car in your name, so a forgotten car does not cost you the discount on the others.
How to protect your discount
- Renew on time. Stay inside the 30-day window after expiry.
- Think before claiming for small damage. Losing two years of discount can cost more over the next renewals than a minor repair.
- Report accidents properly. A clear Najm or traffic report protects you when fault is shared. Our guide to Muroor, Najm and what to do after an accident covers the steps.
- Clean up old cars. Transfer or deregister cars you no longer use instead of leaving them uninsured in your name.
- Shop around. Your NCD moves with you, so compare insurers at every renewal. Our car insurance in KSA guide explains the cover types.
Transferring your NCD
Because the discount sits in your Najm record, it carries over automatically when you change insurer, and it can move to a car you buy later. If you are new to Saudi Arabia, your claim-free years start from your first Saudi policy; a no-claims letter from an insurer abroad is not part of the Najm record, so ask the insurer whether it will consider one.
Frequently asked questions
What is the maximum no claim discount in Saudi Arabia?
The maximum is 60% off the motor insurance premium, for drivers with five or more years of continuous cover and no claims. Najm announced the 60% ceiling when it upgraded its eligibility service with the insurance regulator in 2023. The first claim-free year usually earns about 15%, and the rate rises with each further year.
How do I check my NCD on Najm?
Open the Najm app or the Najm website, log in with your national ID or iqama number and use the eligibility service to see your no claim discount. The rate also appears in the quotes insurers give you at renewal. If the record looks wrong, contact Najm customer service before you buy the new policy.
Does one accident cancel my no claim discount?
An accident alone does not. What counts is a claim paid on your policy where you were mainly at fault. Such a claim cuts your discount by the equivalent of two years on all vehicles registered to you. Claims where your share of liability was under 50% do not count against you.
What happens to my NCD if my insurance expires?
If you renew within 30 days of expiry, you keep the discount. If the car stays uninsured for 30 to 180 days, you lose the discount on that car for one year. After more than 180 days without cover, the discount drops to zero on all your vehicles, so renew on time.
Can I transfer my no claim discount to a new car or insurer?
Yes. The discount is tied to you through Najm records, not to one insurance company, so every insurer sees it when you switch. It can also move to a car you buy later. A no-claims history from another country is not part of the Najm record, so ask the insurer directly.
Sources: Saudi Central Bank motor insurance pricing rules, effective 1 April 2017; Najm upgraded no claim discount eligibility service, March 2023 (Middle East Insurance Review); Najm statement in Arab News, 14 October 2024; Najm app and website. Read in October 2026.