It seems that the consumer is the one who bears the price increases in the local market, with a complete absence by the authorities that are supposed to protect the consumer from these crazy price hikes, or at least explain and justify them from the Ministry of Commerce or the Saudi Central Bank in the event of the insane rise in vehicle insurance prices, which jumped Recently, it is assumed that compulsory vehicle insurance is in the interest of the sector of these companies and that they have solid economic centers, as is the case with insurance and reinsurance companies in the world. These companies rarely lose or exit the market, and whoever lived or studied in the West in particular The particular went through the experience of insuring his old-made car and of little value, and the value of its insurance is commensurate with its price, and not the other way around, as is the case with us now. You can find a car whose value, for example, is up to five thousand riyals, and its insurance equals half its value, unless the aim of such a rise in insurance prices is to create difficulties. And obstacles for very low-income people from purchasing a vehicle and insuring it. In the future, the solution for this group will be to use public transportation such as buses and subway networks, which may start operating soon, as we have heard from one of the officials recently.
A spokesman for the insurance companies, Adel Al-Eisi, said, justifying the increase in vehicle insurance prices, that this is due to the increase in traffic accidents and the sharp increase in spare parts prices, in addition to the increase in costs from service providers such as workshops and agencies. Traffic Safety, which publishes statistics on traffic accidents, deaths and injuries, which indicate clear decreases due to the use of technology in traffic within cities and on main roads within the Kingdom, which means that this justification is not accurate and convincing. In most countries of the world, competition is between insurance companies in all fields on vehicles, on people, or in the medical field by reducing the value of insurance. In our country, competition increases and the consumer has no choice, as he is obligated to insure his vehicle from the official authorities, and there is no suitable option for him. Insurance for another reason, which I think is the real reason behind this increase in vehicle insurance prices, which is the issue of traffic accident fraud that may cost insurance companies millions, but in my opinion this category is few and as if the companies found an opportunity to increase prices for everyone. With a car in front of him or behind him, or deliberately burning his vehicle and then submitting to his insurance company and obtaining large amounts of money, but these remain few numbers and the final decision may block such practices, which require the vehicle owner to have the right to repair the vehicle in the workshop instead of the applicable evaluation system. Previously from more than one workshop, then he gets a large amount of cash from the insurance company, and then he repairs his car in a workshop for a profit, and this certainly harms the insurance companies.
The Saudi Central Bank, the legislator and observer of this sector, should encourage insurance companies to differentiate between the insurance policy for vehicles free of violations and accidents for many years, and there should be incentive reductions in their prices as a result of careful driving and adherence to traffic regulations, and it is not equal between a good driver and a bad driver and a fraud who is punished Everyone because of his fraud and manipulation.