In many countries, a single policy covers your liability to others. In Israel, car insurance is made up of two separate policies, and many olim find out after a minor collision that their compulsory insurance pays nothing for the bodywork. Here is how it works.
The three levels of insurance
| What is covered | Compulsory (Hova) | Third-party (tzad gimel) | Comprehensive (Makif) |
|---|---|---|---|
| Injuries to the driver, passengers and pedestrians | Yes | No (already covered by Hova) | No (already covered by Hova) |
| Damage caused to someone else’s car | No | Yes | Yes |
| Damage to your own car (accident, theft) | No | No | Yes |
| Required to drive | Yes | No | No |
Compulsory insurance: injuries only
Compulsory insurance is required by the Motor Vehicle Insurance Ordinance. It compensates injuries to the driver, passengers and pedestrians, regardless of who is at fault. Its policy terms are set by the insurance regulator: from one insurer to another, the cover is the same, and only the price and service differ. It never pays for damage to property.
Third-party or comprehensive?
Third-party insurance pays for the damage you cause to others. Comprehensive cover also protects your own car: accident, theft, and sometimes broken glass depending on the policy. For a new car, and especially a financed one, comprehensive is the most common choice.
What affects the price
- the driver’s age and how long they have held a licence (a converted licence counts according to the insurer’s rules);
- the authorised drivers (you only, you and your partner, any driver);
- the model, its value and its safety systems;
- your past claims: ask your insurer abroad for a claims history letter, as many Israeli insurers take it into account.
Insured from delivery day
A new car must be insured before it goes on the road. For a car bought with John Auto, we can put you in touch with an insurer so the car is insured on delivery day; you can also choose your own insurer.
Frequently asked questions
Does compulsory insurance renew every year?
Yes, like the car’s annual licence (rishayon rechev): without valid compulsory insurance, the car must not be driven.
Does my no-claims record from abroad count in Israel?
Not automatically. Ask your insurer abroad for a claims history letter: many Israeli insurers take it into account.
Do I need an anti-theft device for comprehensive cover?
Some insurers require one depending on the model and value of the car. Ask before you sign.
Sources: Motor Vehicle Insurance Ordinance (compulsory insurance); 2010 regulations on the terms of motor insurance policies (standard policy); 1981 Supervision of Financial Services (Insurance) Law; Tax Authority, guide for new immigrants (authorised drivers). Practical points to be confirmed with your chosen insurer.