Car insurance in Israel is cheaper than you think

Driving is an essential part of life, but it’s also fraught with potential problems – especially when adjusting to the roads and drivers of a new country! Car insurance will protect you.

Main types of car insurance explained

Compulsory car insurance (Bituach Chova)

This is a "must" insurance, because it is illegal to drive in Israel without this important insurance. This insurance only covers damages to the driver, passengers or pedestrian companions. In most cases, this is a cheap insurance, starting at 700 NIS. The price difference depends on the car, the age of the driver, the number of years of driving, the experience of claims for "HOVA" insurance or the experience of license suspension.

For new cars, the price should be lower, because new cars are safer to drive. In addition, the size of the car will also affect the price of "HOVA" insurance, and large cars with four-wheel drive (4X4) with large engines are more expensive than small cars.

Young drivers pay more than older drivers, and if the driver has had a license for more than 16 years, he will receive a big discount.

If the owner of the car that is the subject of the insurance has had his license suspended (1 or more times) in the past 3 years, he may have to pay more (but not always). Also, if he has made a claim (one or more) on the "HOVA" insurance in the last 3 years.

Third Party Insurance (Tzad Gimmel)

This insurance defends us in case our car causes damage to other cars or property. It is an important insurance because the compensation can be very high for the simple reason that today there are more expensive cars on the road than before. Also, if we damage a new, cheap car, the compensation can be shockingly high

This insurance is usually cheap, starting from NIS 700 in some cases. If you have a letter of no claims in the last 3 years, you can get a nice discount. Also, if the driver is over 24 years old, the price will be low, and even lower if the driver is over 30 years old. New drivers (less than 1 year of experience on the license) will pay more, and if you have more than 2 years of experience on the license, in some cases you can get another discount

Comprehensive Car Insurance (Bituach Makif)

This insurance covers almost all damage to your car and other cars or property. Usually, it is more expensive than third-party insurance, but nowadays there are many options to get great discounts, such as pay-per-mile (km) - if you don't drive, you don't pay.

This no-drive-no-pay insurance is a great solution for people who work from home or for seniors who don't usually drive every day or only drive in the city. Also, claims here are expensive, and the driver's age and driving license experience reflect the insurance price

It covers car theft or damage caused by attempted theft, collision, accident, third-party damage, fire damage, weather damage such as storm or flood, etc.

Completing the mandatory car insurance

Mandatory insurance is a law in the State of Israel, and in fact, since the 1970s, any driver who hits the road without valid mandatory car insurance is guilty of a criminal offense, with a maximum penalty of several years in prison. Mandatory insurance is in place to cover situations where an accident results in the death of the driver of the vehicle himself, other passengers in the car, persons in other vehicles, and pedestrians (whether physical or anxiety injuries). Mandatory insurance allows victims to receive compensation, makes it easier for them to receive the required medical treatment, and covers temporary or permanent loss of work income.

Unlike other car insurance policies, the characteristics of mandatory insurance are that it is determined by the regulator, the coverage is fairly standard (without much flexibility in the choice and deletion of parts by the insured and the insurance company), and the maximum premium is also limited by the Ministry of Finance. Therefore, drivers interested in purchasing mandatory insurance will not find significant differences in costs and available coverage.