Car Insurance Prices Drop About 20% After Years of Increases in Israel

After years of sharp increases, car insurance prices in Israel have recently fallen significantly. According to the Wobi index for the second quarter of 2026, published by n12, car insurance premiums dropped by approximately 11% in June 2026 compared to June 2025, and about 20% compared to the peak in the second quarter of the previous year. The main reduction was seen in comprehensive insurance, while mandatory insurance actually rose by around 4%. Most of the price decline occurred in the second half of 2025, with a more moderate 2% decrease since the start of 2026.

Several factors contributed to the price drop: stabilization of car spare parts costs, reduced driving due to the war's impact, regulatory pressure from the Capital Market Authority, and a significant 20% decrease in car thefts according to police data. Ilan Goldstein, CEO of Pointer, noted that in the last quarter the decline was even sharper at about 33% year-over-year, partly due to increased security presence in the West Bank.

Price reductions vary widely by car model. Hyundai Venue and Toyota RAV4 saw decreases of around 29%, Mazda 3 by 25%, Mitsubishi Space Star by 21%, and BYD Atto 3 by 20%. Other models like Volkswagen Polo, Kia Sportage, Tesla Model Y, Hyundai Tucson, and Peugeot 3008 also experienced notable drops. However, some models such as Peugeot 208, Seat Leon, and Seat Ibiza saw price increases of 4% to 9%.

BDO’s chief economist Chen Herzog estimates that families with two cars could save between 1,000 and 1,500 shekels annually. Consumers are advised to compare quotes and ensure market discounts are passed on. Israeli law allows policy cancellation before term end to switch insurers, but customers should check for penalties or exit fees. Young drivers, those with claims history, or living in high-theft areas may see smaller or no reductions.