What affects the price of car insurance?
The premium is set by the insurer based on a risk profile. Below are the most common factors — without promising any specific rate.
Driver age and experience
Young and new drivers usually face higher rates because their statistical accident risk is higher.
Claim history
Past claim frequency and severity affect the premium and your eligibility for a no-claims discount.
Car make and model
More expensive cars or cars more prone to theft are usually more expensive on comprehensive cover. An old, low-value car may not justify a comprehensive policy.
Cover type
Mandatory alone is cheaper than mandatory plus comprehensive. Third-party sits in between.
Deductible
A higher deductible may reduce the premium but increases what you pay at claim time.
Driver restrictions
A policy limited to older or more experienced drivers may be cheaper, but must reflect actual use of the car.
Safety and anti-theft systems
Approved anti-theft, alarm systems, dashcam and similar features may affect the rate, subject to the insurer's requirements.
How the car is used
Use for work, high annual mileage, street vs. private parking — all of these may influence the premium.
Young or new drivers — what to keep in mind
A policy for a new driver is usually more expensive, but that does not mean cutting back on meaningful cover. You can reduce the premium with driver restrictions, a higher deductible or by choosing a less theft-prone car — but every choice must reflect actual use. Hiding the real driver can void a claim.
- Driver restrictions: only useful if the new driver really does not drive the car. Hiding it can ground a claim rejection.
- Deductible: choose an amount you can comfortably absorb after an accident before going for a high deductible.
- Vehicle choice: a less expensive or less theft-prone car directly affects the premium.
- Young-driver tracks differ between insurers: the same profile can be priced differently from one company to another.
- Mandatory insurance: must be in force for lawful use of the vehicle.
What to do after an accident — the basic steps
Basic civic and insurance steps after any accident. The order may vary depending on severity and on the policy terms.
- 1
Safety and medical care first
Check that nobody is injured. In emergencies, call Magen David Adom (101) and the police (100). Moving the car or exchanging details can wait until immediate medical needs are handled.
- 2
Exchange details with the other party
Collect names, phone numbers, license plate, insurer and policy number. Do not accept or deny liability at the scene — that is the insurer's decision.
- 3
Document the scene
Photograph the vehicles from every angle, their position on the road, skid marks, traffic lights and signs. Visual documentation helps establish what happened.
- 4
Witnesses where relevant
If anyone saw the accident, ask for their name and phone. Independent witness statements can support a claim later.
- 5
Notify your agent or insurer
Report the event quickly to your agent or the insurer's claims centre. They will guide you on the forms required and the time frame.
- 6
Police report when required
Where there is bodily injury, public-property damage or an ongoing dispute, a police report is required. An online traffic-accident report service is available on gov.il.
- 7
Keep documents and invoices
Save documentation of repair, towing, replacement car and any medical treatment. These may be needed for the claim.
When to claim — and when to think twice
Not every event justifies a claim. The question depends on repair cost versus deductible, on the impact on your no-claims discount and future premium, and on whether the policy or law requires reporting. Never avoid reporting where it is required by the policy or by law.
- Compare the repair cost against the deductible.
- Check whether a claim would affect the no-claims discount at next renewal.
- Always report bodily injury, public-property damage, pedestrian impact or significant damage.
- Always report theft, fire and natural-disaster events.
- For very minor incidents below the deductible, discuss the reporting decision with the agent.
