What is the ruling on mandatory driving license insurance in Saudi Arabia?

If a Muslim is compelled to enter into a prohibited insurance, it is permissible for him to do so, and the sin falls upon the one who compelled him.

Therefore, if one is compelled to insure a car or a driver's license, and cannot avoid it, and finds no permissible alternative, then he may insure for the minimum legally acceptable amount—such as third-party insurance—without comprehensive insurance. This is based on the Almighty's saying: "So fear Allah as much as you are able," and His saying: "But whoever is compelled, neither desiring [it] nor transgressing, there is no sin upon him."