Drivers in Israel Risk Losing Thousands Annually by Not Shopping for Car Insurance

Israeli drivers are losing significant amounts of money each year by automatically renewing their car insurance policies without comparing prices, according to a new report. While car insurance prices have dropped by nearly 18% since November 2024, many consumers fail to benefit from these savings by accepting the first renewal offer they receive. The Israeli car insurance market is valued at over 20 billion shekels annually, with six major companies controlling two-thirds of the market: The Phoenix, Direct Insurance, Harel, Clal, Menora Mivtachim, and Migdal.

Drivers must have mandatory insurance, which covers bodily harm. Comprehensive and third-party liability insurance offer additional protection. Third-party insurance covers damage to another person's property, while comprehensive insurance includes third-party coverage plus damage to the insured vehicle from accidents, theft, weather events, and vandalism. Experts suggest that while mandatory insurance is essential, third-party insurance is also highly recommended due to the potential cost of damaging expensive vehicles. Comprehensive insurance may be less justifiable for lower-value cars, but is advisable for more expensive ones.

Significant price differences exist between insurers for the exact same coverage. For example, one driver with a 2022 Hyundai Tucson received quotes ranging from 5,824 shekels to 8,404 shekels, a difference of 2,580 shekels. Another driver insuring a 2021 Toyota Corolla faced a gap of 5,411 shekels between the cheapest and most expensive offers. A Tesla Model Y policy showed a difference of 6,562 shekels between insurers.

To save money, consumers are advised to compare prices annually, as loyalty does not guarantee the best rate. Negotiating with existing insurers using quotes from competitors can also lead to savings. Other cost-saving strategies include reviewing one's insurance history, considering mileage limitations, increasing the deductible, and adjusting coverage for young drivers or when a vehicle is not in regular use. It is also crucial to accurately declare all drivers, especially young ones, to avoid claim rejections. For electric vehicles, drivers should ensure their policies cover specific needs like battery depletion and access to appropriate repair facilities.