Israeli Government Expands Car Insurance Program to Include Career Military Personnel

Three Israeli insurance companies, Phoenix, Migdal, and WeSure, have won a Ministry of Finance tender to provide car insurance for state employees, retirees, and, for the first time, career military personnel, starting in 2027. Phoenix and Migdal will each handle 40% of the program, with WeSure covering the remaining 20%. The program is expected to insure over 70,000 private vehicles with a total financial volume exceeding 400 million shekels.

This marks the first time career military personnel are included in such a government insurance tender, with the Ministry of Finance anticipating several thousand service members will participate. The insurance covers participants' personal vehicles, not state-owned fleets. Participation is voluntary, and eligible individuals can choose other insurers.

The inclusion of Phoenix, which secured a significant portion of the tender, was unexpected given its strategy to reduce involvement in less profitable sectors like medical and long-term care insurance. The car insurance market is highly competitive with low tariffs, making it less lucrative.

Industry sources suggest the prices offered in the new tender are lower than those in 2026, attributed to intense competition, a general decline in car insurance prices, and reduced profitability in the sector. While full details are not yet public, the average insurance cost per vehicle is estimated to decrease to around 4,500 shekels, offering participants an estimated 15-25% discount compared to the private market rates of 6,000-7,000 shekels.

New tender conditions allow insurers to adjust deductibles based on client risk profiles and driving history. Low-risk drivers may receive more favorable terms, and those with excellent records could get coverage eliminating deductibles entirely. The policies will also include towing and roadside assistance, with options for young driver coverage limited to days of use.