Car Insurance — Comparison & Guide

Types of car insurance (comprehensive, third-party, mandatory), price comparison, savings tips, and what to check.

Car insurance in Israel (Bituach Rechev) is divided into two main categories: mandatory insurance (Chovah) that is legally required, and comprehensive insurance (Makif) that covers damage to your own vehicle. Understanding both helps you avoid gaps in coverage and overpaying.

Mandatory Car Insurance (Bituach Chovah)

Israeli law requires every vehicle on the road to have mandatory third-party bodily injury insurance. This policy covers medical expenses for anyone injured in an accident involving your car — including you, passengers, pedestrians, and people in other vehicles. Without it, you cannot legally drive, and your annual vehicle test (Test) will fail.

Comprehensive Insurance (Bituach Makif)

Comprehensive insurance covers damage to your own car from accidents, theft, vandalism, fire, and natural events. It is not legally required but is highly recommended, especially for newer or more expensive vehicles. The premium depends on your car's value, your driving history, your age, and the coverage level you choose.

Third-Party Property Insurance (Tzad Gimel)

There is a middle option called third-party property insurance that covers damage you cause to other people's vehicles and property but not your own car. It is cheaper than comprehensive but leaves you exposed if your car is damaged. Many drivers of older, lower-value cars choose this as a compromise.

How to Save on Car Insurance in Israel

Compare quotes from at least three insurers every year — premiums vary significantly. Install safety features that qualify for discounts. Increase your deductible (Hashtatfut Atzmit) to lower the premium. Maintain a clean driving record. Bundle car insurance with other policies from the same company for a multi-policy discount. Consider whether comprehensive coverage is still worth it as your car ages and depreciates.