The phenomenon of the rise in thefts has already been discussed in the Knesset multiple times, and all these trends highlight the need for broad insurance protection.
Car insurance includes several types, including mandatory insurance, comprehensive insurance, and third-party insurance. It is important to understand the coverage provided by each one.
Mandatory Insurance: The Legal Basis for Every Driver
Mandatory car insurance is the only insurance required by law in Israel for every car owner. It is not only a legal obligation but also essential for maintaining your financial security.
Mandatory insurance provides coverage for victims of traffic accidents and covers bodily injuries for all parties involved in the accident, including pedestrians. The financial compensation for the victims is determined by law and includes compensation for lost earnings and disabilities. Remember: Driving without mandatory insurance is a legal offense.
Comprehensive Insurance: Broad Protection for Your Car
While comprehensive insurance is not mandatory, it offers peace of mind to car owners. It provides broad coverage against a variety of risks. Comprehensive insurance includes coverage for damage to your car from accidents, theft, fire, and even flooding. Additionally, it covers damage you may cause to others' property.
The advantages are clear: You have coverage against unexpected expenses in case of an accident or theft, giving you peace of mind on every trip. Given the sharp rise in car thefts in Israel in recent years, including new cars, SUVs, electric vehicles, and more, it seems that spending on this insurance might be one of your most worthwhile expenses.
Third-Party Insurance: A Middle Ground Solution
If you’re looking for a middle-ground solution, third-party insurance might be the right choice for you. It covers damages you cause to others' property, such as damaging another car. However, it’s important to remember that third-party insurance does not cover damage to your own car and does not cover theft.
Tips for Saving on Car Insurance Costs
To save money without compromising on the necessary coverage, it’s a good idea to consider a few simple steps. First, compare prices between different companies – the differences can be significant.
Second, if you have young drivers at home who are not at home often (for example, soldiers or students), consider not including them in the insurance, and instead, purchase temporary driver insurance for them as needed.
In any case, remember that what’s just as important as the price of the policy is the coverage provided. When you compare car insurance prices, don’t forget to ask about the deductible amount or what the policy extensions include.
Innovations and Trends in the Car Insurance World
The insurance world is rapidly changing with the introduction of new technologies. Today, there is the option for usage-based insurance (Pay-per-mile), where you pay only for the kilometers you actually drive.
Additionally, there are smart devices that monitor your driving style and offer dynamic pricing based on your behavior on the road. Clal Insurance offers a comprehensive insurance plan called Clal BEHAVE, which provides good drivers with a further discount each month, based on the quality of their driving and the distance traveled.