Car Insurance Prices Drop 25% From Peak, With Varied Savings for Drivers
Translated & summarized from Maariv by baba
Car insurance prices in Israel have dropped by 25% from their peak, though savings vary by vehicle model and policy. The gap between comprehensive and third-party insurance premiums has narrowed significantly. While popular models like the Toyota C-HR saw substantial decreases, others like the Hyundai Elantra became more expensive. Factors contributing to the drop include stable spare parts costs and fewer thefts, countered by rising repair expenses.
The story in 6 lines · by baba
- Car insurance prices have fallen 25% from their peak, but savings are not uniform.
- The average gap between the cheapest and most expensive offers exceeds 4,500 shekels.
- Comprehensive insurance prices dropped while third-party liability remained stable.
- Toyota C-HR insurance fell 27%, while Hyundai Elantra prices increased 18%.
- Stable spare parts costs and fewer thefts contributed to lower premiums.
- Rising repair costs and technician shortages are offsetting some price reductions.
Car insurance premiums in Israel have fallen by an average of 25% from their highest point, offering significant relief to drivers. However, the price reductions are not uniform across all vehicle models or insurance types, with substantial gaps remaining between the cheapest and most expensive offers for the same driver profile, sometimes exceeding 4,500 shekels. Drivers are advised to consider policy terms, deductibles, and coverage in addition to the price.
A notable shift has occurred between comprehensive and third-party liability insurance. While comprehensive insurance prices have decreased over the past year, third-party liability prices have remained stable. This has narrowed the average premium gap to approximately 2,000 shekels, a reduction of about 1,500 shekels in eighteen months.
The extent of the price drop varies significantly by car model. For instance, insurance for the Toyota C-HR saw a 27% decrease, Hyundai Ioniq and Chery Tiggo 7 dropped by 22%, and Mazda 3 by 17%. BYD Atto 3 and Kia Sportage insurance fell 16%, Volkswagen Polo by 10%, and Tesla Model 3 by 5%. Conversely, the Hyundai Elantra experienced an 18% price increase.
According to Wobi, the decline in comprehensive insurance prices is partly attributed to a halt in the rise of spare parts costs, which had previously driven up insurance expenses. The company also notes a decrease in vehicle thefts. However, rising repair costs in garages, including increased labor rates due to a technician shortage and higher material costs for items like oils and fluids, are partially offsetting these downward pressures on premiums.
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