Car Insurance

Car insurance in Israel may work slightly different to car insurance in your country of origin. (And we don't just mean the need for it because of Israeli drivers!!!)

There are two categories of Insurance.

1. The Compulsory Insurance - Chova
2. Comprehensive or 3rd Party Insurance - Makif or Tzad Gimmel

The Chova is a legal requirement, and the cost is governed by the type of vehicle, age of drivers, accident history, air bags and usage. The Chova covers unlimited liability coverage for bodily injury to the driver, passengers and pedestrians. Each car covers its own passengers irrespective of who is at fault.

The Makif covers any damage to your vehicle and any 3rd party vehicle up to a value of approximately 400,000 NIS. It also covers any depreciation on the market value of your car as a result of an accident.

Tzad Gimmel just covers damage to a 3rd party. It does not cover damage to your own vehicle.

In Israel, as part of the insurance policies, you can also obtain roadside and towing assistance, replacement car coverage and windscreen cover, much cheaper that if you were to buy it separately.

Car insurance premiums can be reduced if you fit into certain categories:

• Age groups: e.g. 24-29, 30+ (premiums reduce with age)
• Whether or not you drive on Shabbat
• The number of people insured to drive your car (Up to two drivers reduces the premium)
• Number of claim-free years of driving

An Oleh, Toshav Chozer or Tourist who has had car insurance in another country, should obtain a letter from their insurer stating the number of years no claims they have had (preferably 3 years or more) in order to qualify for a reduced premium. Without this letter, the Oleh, Toshav Chozer or Tourist will be insured as a new driver!!

Goldfus Insurance and Investments takes no responsibility for changes in Israeli legislation that may alter the accuracy of the above information.

For clarification of any changes, please contact us nearer the time of your arrival.