Car insurance in Israel is based on different parameters to insurance in other countries, often causing confusion for new immigrants who recently made Aliyah. While the basic concept of car insurance remains consistent, there may be subtle nuances that are unique only to Israel.
There are three categories of Car Insurance in Israel:
Bituach Chova - Compulsory Car Insurance
Bituach Makif - Comprehensive Car Insurance
Tzad Gimmel - 3rd Party Insurance
Bituach Chova (Compulsory Insurance) is a legal requirement, and the cost is determined by the type of vehicle, age of drivers, accident history, car safety features and usage. Bituach Chova offers unlimited liability coverage for bodily injury to the driver, passengers and pedestrians that may be involved in an accident. Each car covers its own passengers irrespective of who is at fault.
Bituach Makif (Comprehensive Insurance) covers any damage to your vehicle and any 3rd party vehicle up to the sums insured specified in your car insurance policy. It also covers any depreciation on the market value of your car as a result of damage caused by an accident.
Tzad Gimmel (3rd Party Insurance) only covers damage to a 3rd party. It does not cover damage to your own vehicle.
When purchasing Bituach Makif or Tzad Gimmel with Goldfus Insurance & Investments, roadside assistance & towing services, replacement car coverage and windscreen cover, is automatically included.
Car insurance premiums can be reduced based on the following:
Whether or not the car is driven on Shabbat
The number of people insured to drive the car- fewer drivers reduces the premium
Number of claim-free years of driving
An Oleh Chadash, Toshav Chozer or tourist who has had car insurance in another country, should obtain a letter from their insurer overseas stating their claims history, which may qualify the driver for a reduced premium. Without this letter, they may be insured as a new driver, with a higher premium.
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.