Every car owner in Israel runs into three names: mandatory (Hova), third-party (Tzad Gimmel) and comprehensive (Makif). The labels sound similar, but in practice what they cover is very different. This article walks through what each cover usually includes, what it does not, which questions to ask before buying — and as always, subject to the specific policy terms.
Mandatory insurance (Hova) — bodily injury under the law
Mandatory insurance is a statutory cover based on Israel's no-fault road accident compensation law. It is intended to pay bodily injury benefits to the driver, passengers and pedestrians in a road accident, regardless of fault. Payment is made through the insurer of the vehicle involved. Mandatory cover does not include property damage — not to your car and not to anyone else's.
- Covers: bodily injury to driver, passengers and pedestrians in a road accident.
- Does not cover: damage to vehicles, theft, fire, natural-disaster damage or loss of value.
- Required for lawful use of the vehicle — its status appears in the vehicle's official records.
Third-party insurance (Tzad Gimmel) — property damage you cause to others
Third-party insurance is designed to cover property damage you cause to others in an accident — usually a third-party vehicle, and sometimes other non-vehicle property — subject to the policy terms. It sits between mandatory and comprehensive: because it focuses on liability for others' property and not your own, the premium is usually lower than a comprehensive policy.
- Covers: damage to someone else's vehicle or property, subject to the policy terms.
- Does not cover: damage to your own car, unless a dedicated extension is added.
- Does not cover: theft, fire and natural-disaster damage to your own car.
Comprehensive insurance (Makif) — your car plus third-party
Comprehensive insurance is a broader additional layer. It usually covers accident damage to your own car, theft, fire and natural-disaster damage, as well as property damage caused to third parties — subject to the policy terms and to the deductible amounts. It is more expensive than third-party, but provides broader protection — especially for higher-value cars or for cars used daily by the family.
- Covers: accident damage to your own car, subject to the policy terms and the deductible.
- Covers: theft, fire and natural-disaster damage where included in the policy.
- Covers: property damage to third parties, similar to a third-party policy.
- Does not cover: events excluded by the policy, costs not listed, and add-ons not purchased.
Common mistakes I see with clients
- Assuming mandatory cover also handles damage to the car — in practice it is for bodily injury only.
- Choosing comprehensive cover for an old car whose market value is below the annual premium — sometimes mandatory plus third-party is more balanced.
- Hiding who actually drives the car to reduce the premium — this can ground a claim rejection.
- Comparing policies only by the monthly premium without checking the deductible and the exclusions.
- Assuming replacement car or towing are included by default — these are often separate add-ons.
Questions to ask before signing
Before locking in a policy, get clear answers to a few basic questions:
- What is the standard deductible and what is the theft deductible?
- Does the policy restrict drivers by age or experience? If so, does it reflect actual use?
- Are towing and a replacement car included, or are they add-ons?
- Which natural-disaster events (storm, flood, earthquake) are included, and which need an extension?
- What will the premium look like at the next renewal after a claim?
- What cover applies when the car is abroad or loaned to a friend?
What affects the price
The premium is set by the insurer based on a risk profile. Main factors: driver age, experience, claim history, car make and model, cover type, deductible, driver restrictions, safety and anti-theft systems, and how the car is used. Different insurers can price the same profile differently.
The car insurance hub on the site
The car insurance hub explains all three cover types in detail, includes a comparison and walks through what to do at the scene of an accident.
Open the car insurance hubFrequently Asked Questions
What is the substantive difference between mandatory and comprehensive cover?
Mandatory insurance covers bodily injury under the law, regardless of fault. Comprehensive insurance is a broader additional layer that usually covers damage to your own car, theft, fire and sometimes natural disasters — along with property damage to third parties. The exact cover depends on the policy terms.
Is third-party cover enough for a relatively new car?
Not always. Third-party cover addresses damage you cause to others and does not cover your own car. For a relatively new car whose market value is still meaningful, most clients consider a comprehensive policy, subject to the policy terms and the deductible. A personal review with an agent helps reach the right decision.
Can the policy be restricted to an older driver to lower the price?
Yes, subject to the driver-restriction clause. The restriction must reflect actual use of the car. If a driver not listed in the policy causes an accident, the insurer may reject the claim. Hiding a regular driver is not a legitimate way to lower the premium.
What is the difference between the standard deductible and the theft deductible?
The standard deductible is the amount you pay in a normal claim covered by the policy. The theft deductible is a separate, usually higher, amount defined in the policy for vehicle theft. Both amounts appear in the policy schedule and in the policy text.
Does one policy cover all the drivers in the family?
It depends on the policy. The default sometimes restricts cover to drivers of a certain age or with minimum driving experience. Adding another driver can increase the premium. To make sure everyone who actually drives the car is covered, read the drivers section of the policy and confirm correct registration.
What happens if an accident occurs when the car was loaned to a friend or family member?
The outcome depends on the policy terms. If the driver meets the policy's 'authorized driver' definition (age, experience, no restrictions), cover usually applies. If they fall outside the definition, there may be exclusions or a claim rejection. Check before loaning the car.
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