Saudi Arabia's car insurance costs have skyrocketed by some 400 percent due to a steady increase in traffic accidents.
An insurance expert told the Saudi Gazette that the number of accidents would cross the 1.1 million mark by the end of this year.
An average of 17 residents die on Saudi Arabia's roads each day, according to statistics from the kingdom's General Directorate of Traffic cited by Arab News. In August, the government took steps to address reckless driving in the kingdom, raising fines for traffic violations significantly.
"Road accident rate has been growing in the kingdom at alarming levels in recent years causing human and material losses," Talal Al-Batti, the expert, said.
Insurance companies have reportedly suffered losses of more than 100 percent due to car accidents.
Batti also pointed to road work across the kingdom as having increased the rate of accidents. Other experts said that an increase in cement blocks along the roads are also a major factor.
"This has hiked road accidents by 15 percent and contributed to increasing insurance premiums,” one expert said.
“Najm [Saudi Arabia's car insurance company] should find a solution to ensure quick handling of accidents,”
Experts said that Najm is not responding to accidents in a timely manner, which can lead to more significant problems and complications. The experts also believe that insurance costs are set to rise further as nothing seems to be changing and reckless driving continues unchecked.
