Car Insurance in Israel

Auto insurance in Israel can be confusing. We hope this article will help you better understand how the auto insurance system works in Israel. (Please note: This article is for informational purposes only. All coverages are solely according to the insurance companies policy conditions.)

 

Three Types of Car Insurance in Israel

There are three types of car insurance policies in Israel:

Obligatory Insurance (Bituach Chova – ביטוח חובה)

This required insurance covers personal injuries, both to occupants of your vehicle and pedestrians. It is illegal to drive in Israel to without valid, paid Bituach Chova.

Third Party Insurance (Tzad Gimmel – צד ג’)

Tzad Gimmel doesn’t cover property damage to your car. It does cover damages your car causes to other cars or property. Damages are covered up to the policy limit.  This type of auto insurance is mainly appropriate for older vehicles with a low market value.

Comprehensive Insurance (Makif – מקיף)

Makif covers everything covered by Tzad Gimmel. In addition it covers your vehicle for fire, explosion, vandalism, collision, and theft. You will definitely want this type of coverage if you have a newer vehicle with significant market value.

FAQS

 

Are “extras”covered?

“Extras” (leather seats, sun roof, etc…) that are not part of the standard car model need to be specifically added to the policy in order to be covered.

How to I buy or sell a car in Israel?

New cars are purchased through a dealer who does the job of registering the ownership of the vehicle in your name.

In order to register a used car that you purchased in your name (or if you sell your car – to register it in his name), both the buyer and the seller have to go the Bank HaDoar (Postal Bank) with the car registration, valid IDs, and pay a fee. If you buy a used car from a rental car company or a used car dealer, they should take care of this for you.

When purchasing a vehicle, arrange your insurance with our staff beforehand so that we can activate it immediately at the close of the transaction.

Will my car insurance cover me when I rent a car?

No! The insurance only covers the car that you insured.

Is the insurance active after the car is sold?

No! The moment the car is sold, all insurance policies relating to that car expire. Often people mistakenly think that the seller can “insure” the buyer for a short period of time. This is incorrect.

Can I transfer my insurance rights to someone else?

No! The insurance policies are private, legal agreements between you – the insured – and the insurance company. You therefore have no right to transfer any of your insurance benefits to other parties.

If people are injured, will my policy go up next year?

If they are in your car or they are pedestrians your car hit, G-d forbid, then if they want to collect damages their only recourse is to sue your Bituach Chova policy. This is because Bituach Chova is “no fault” insurance, meaning that it does not matter who is at fault in the accident. So “yes”, your policy will go up next year if injured parties claim from your Bituach Chova. Click here to see what to do in a car accident

If someone hits my car, will my policy go up next year?

If we collect from their insurance company then “no”. If we cannot collect from them and can only collect from your comprehensive policy, then “yes”. Click here to see what to do in a car accident

Do I need “umbrella” insurance?

There is no “umbrella” insurance in Israel. Regarding personal injury car claims, the law limits the amounts for which one can sue and you are covered up to the full amounts that the law allows. Regarding third party property damages, the insurance company will pay covered claims up to the limits written on the policy. These limits can be increased. Ask our staff for details.

What about “riders”

“Riders” such as towing, road-side service, fixing flat tires, windows, sound systems, and a replacement car in cases of accidents and thefts can be added – either attached to the actual insurance policy or purchased separately. Ask our staff for details.

What To Do In Case You Are In A Car Accident

  • Stop your car and turn off the engine
  • Check if anyone is injured. If there are injuries requiring medical attention Call 101 (Magen David Adom) for an ambulance then call 100 to notify the police. Do not move the cars when there are injured people requiring medical attention until the police arrive.
  • Check the damage to your car or to other cars. When safe, look under your car to see that no fluids have leaked out.
  • If you have a digital camera, photograph the position of the cars involved, their damage and the area of the accident including any relevant traffic signs. This could help you very much in a claim against the other party’s insurance company as pictures can often prove the correctness of your position.
  • Write down the following information for each car involved in the accident and give them your information:
    • Name and Teudat Zehut number of the car owner and the driver.
    • Address and phone number of the car owner and the driver.
    • Car information (License plate number, type of car, year of car).
    • Insurance information: Insurance company, policy number, and the insurance agent’s name and phone number.
    • If there were any witnesses to the accident, get their information: name, address, and phone number.
    • Do not take any responsibility for the accident and do not sign any declarations. Determining who was at fault is up to the insurance company.
  • Write down exactly what happened while it is still fresh in your mind. Include a drawing of the accident, including road signs and any other information that could be helpful.
  • Call your towing service (24 hours) if you can’t drive your car or if driving it might cause further damage.
  • Call our office to report the accident at 02-6519343