Sorry for the delay in replying, Lara, Christmas and all that. I hope you managed to sort out at car. You can do the trip to Khassab in any vehicle as it's all tarmac unless you go into the wadi. Even then, you can get to the acacia forest in a saloon car as long as the rains have stopped. (It was a bit flooded up there last week.) I wouldn't advise the climb up and down to Khor Najd in a 2WD however!
I'm afraid I don't know that much about 4X4 car insurance but I think it's standard that insurance policies don't cover off-roading even for 4X4s. I only have third party for my old Nissan which makes me liable for any damage I cause. It's not such an issue with a 15 year-old car but I can understand your reluctance to risk a new car off road.
Stephan
PS re: camping I've sent you a PM.
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