Are “extras”covered?
“Extras” (items that are not part of the standard car model) need to be specifically added to the policy in order to be covered.
How do 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 the buyer's name), both the buyer and the seller have to go the Bank HaDoar (Postal Bank) with the car registration, valid Israeli 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.
An acquaintance wants to rent my car for a few days. Will my insurance cover this?
Absolutely not! Your insurance policies allow you to lend your car to anyone you chose as long as they are allowed to drive in Israel and their age and driving experience match the category of drivers that is on your policies, but only a rent a car company is allowed to rent out a car. Rental cars have special car registrations and require special insurance policies. Regular car policies (both the personal injury policy and the property damages policy) exclude coverage if the car is rented out!
What about carpools?
There is a fine line legally between "charging passengers a fee" and a “carpool”. The difference will be explained below.
In Israel, only a taxi or a bus is allowed to charge passengers a fee for their services. They have special car registrations and require special insurance policies. Regular car policies (both the personal injury policy and the property damages policy) exclude coverage if the passsengers are required to pay a fee for the ride.
Driving people in a "carpool", on the other hand, is permitted. The term “Carpool” has a well-defined definition and, when the requirements are fulfilled, is not considered by law to be an arrangement where the driver is charging the passengers a fee for driving them, even though the driver does receive some remuneration.
All of the following conditions must be met in order for the journey to be considered a “carpool” by Israeli law:
- The vehicle must be registered as M1 on the car registration (this includes all private cars and most commercial vehicles whose weight does not exceed 3.5 tons)
-Each passenger needs to arrange his participation in the journey with the driver in advance.
-No more than four passengers – excluding the driver - are allowed in the car during the journey.
-Each passenger pays his share of the direct expenses of the journey, calculated by dividing the direct expenses of the journey by the number of people in the car, including the driver.
- The total amount of the direct expenses of the journey may not exceed 2 NIS per kilometer.
-The driver of the car may not drive more than two carpools in the same day.
-The car itself may not be used for more than two carpools in the same day.
If all of the above conditions are met, the journey is considered a “carpool”, you are not required to notify your insurance agent, and the coverage of your regular insurance policies remains in full force.
If people are injured, will my policy go up next year?
If they are in your car or are pedestrians whom your car hit, G-d forbid, then their only recourse to collect damages is to sue your Bituach Chova policy. Bituach Chova is “no fault” insurance and will pay out regardless of whether ot not the accident was your fault. So "Yes", your Bituach Chova policy will go up next year if injured parties claim from your Bituach Chova. Your other car policy (Comprehensive or Third Party) will be unaffected.
If someone hits my car, will my policy go up next year?
If we collect your damages from their insurance company then “no”. If they do not have insurance or their insurance company refuses to pay and you collect your damages from your comprehensive policy, then “yes”.
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 amount 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.
My car is old. When should I switch my coverage from Comprehensive to Third party?”
There are two approaches. The first calculates the ratio of the premium to the value of the car. As the car's value decreases, the insurance premium eventually becomes a higher percentage of the car's value than can be justified. The second approach asks "would you be able to afford purchasing another car to replace this one if it was totalled?" and, if the answer is "no", suggests you seriously consider staying with the Comprehensive coverage in spite of its high cost/value ratio. Keep in mind that even small accidents that can easily be fixed will often cause an older car to be considered "totalled", as once the cost of replacing the damaged parts and labor reaches 60% of the car's book value a shamai (loss adjustor) is required by law to take it off the road.
What “rights” does having the right of way in an intersection give me?
None, the other driver must grant them to you. Even though you may legally have the right of way, you still must make sure that it is safe to enter the intersection before you do. You cannot just take your “right” of way if the other driver does not grant it to you.
Israeli transportation regulations place 15% legal blame on the party not at fault in all accidents that occurr in an intersection.
What are some good tips to avoid getting into an accident?
-Always keep your eyes on the road and your hands on the steering wheel.
-Drive according to the road and weather conditions. Do not speed!
-Keep a safe distance between you and the vehicle in front of you.
-Don't drive close to median strip. Stay to the right.
-Remember that while Red means "you must stop, Green means "you may go", after you verified that the intersection is clear.
-Expect the unexpected.
Can a student/tourist that has been in Israel for a while drive on their foreign license?
This is a complicated legal question, and the information below is not intended to be a legal opinion. Anyone who drives in Israel and relies on their foreign driver’s license does so at the risk of being completely uninsured! If case of any doubt you should contact a qualified attorney for a legal opinion.
Israeli law requires all drivers in Israel to have valid Israeli drivers' licenses unless they are considered by law to be a non-resident. Non-residents can drive on their foreign licenses for limited periods of time. But if the law considers you a resident, then your foreign license is invalid for use in Israel, and it is illegal for you to drive.
All car insurance policies (Chova [obligatory], Comprehensive, and Third Party) exclude from coverage claims where the driver does not have a valid driving license as defined by Israeli law.
While some people will pull out their passports and claim "Take a look at the visa the Israeli authorities stamped in my passport, it says I'm a student/tourist/foreign worker/etc...", the Israeli courts consistently adjudicate that residency is based on where you actually reside, not the status of your visa.
The judge will examine the particulars of the case presented and attempt to determine your country of residency.
Do you or your family have Bituach Leumi? If you do, then you actually requested and were granted residency!
Where have you or your family physically resided for the majority of the past few years?
Do your kids go to school here?
Do you have a bank account here?
If Israel is where your life is centered, your attorney will have a hard time making the case in court that you are a "non-resident of Israel" and you can be sure that the attorneys for the insurance company will do their utmost to make the opposite case.
If the court determines that the driver is a resident of Israel, the law considers his foreign license invalid for use in Israel and the insurance company won't pay any damages, neither property damages nor personal injuries.
Getting an Israeli driver's license on the basis of your foreign one is usually quite straightforward, although the process may take some time. In most cases all you will need are an eye exam, one driving class, and a short road test to make sure you know how to handle a vehicle. Call any licensed driving instructor; his job is to take you through the process from A-Z.
