Buying expensively, insuring even more expensively - Walla! Of money

2022-01-19T14:37:10.227Z

Comparing insurance prices between several models in the same segment reveals astronomical price differences. Why is this happening and why do you have to take it into account?

Buy expensively, insure even more expensively

Comparing insurance prices between several models in the same segment reveals astronomical price differences.

Why is this happening and why do you have to take it into account?

Keenan Cohen

19/01/2022

Wednesday, 19 January, 2022, 16:06 Updated: 16:25

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So you bought a car, congratulations.

At the moment less than a year if it is new or used: you have been debating, you have done a comparison of the trunks, you have asked the "friend who understands this", maybe you have taken a loan, bargained, signed and now it's time to go.

But a moment before - something else needs to be done - insurance.

And here, too, you went and compared prices at several agencies, you chose the one with the best coverage and the best price, but you still missed something - you may have just thrown a few hundred shekels in the trash at best and a few thousand shekels at worst just because you bought a certain car.

It turns out that not only the new car market is booming, but also insurance, with price increases in a very large proportion of models on the market (https://finance.walla.co.il/item/3479890).

Increases that, among other things, "correct" the price declines of 2020 and part of 2021, but in part are due to an increase in car thefts recorded since the second half of 2021. (https://cars.walla.co.il/item/3478952)

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Besti CEO Tamar Gerzon: "A consideration that should be included in the decision-making process before purchasing a car" (Photo: Lem Welitz)

Using the insurance comparison engine of the "Besti" website, which examines and compares dozens of offers from insurance agencies (but does not sell insurance itself), we examined the insurance costs of some prominent cars in the popular segments in Israel.

The results indicate very significant price differences.

Besti CEO Tamar Gerzon

: "Most customers purchase car insurance immediately after purchasing the car, insurance costs do not always fall into the basket of considerations, it is a consideration that should be included in the decision-making process before buying a car, not just car model, engine power or level of finish.

Sometimes it is possible to reduce the current expenses associated with buying the car by thousands of shekels

. "

Kia Picanto (Photo: Keinan Cohen)

Mini vehicles:

• Hyundai i10 - Price: NIS 2,522

• Chevrolet Spark - Price: NIS 2,690

• Kia Picanto - Price: NIS 3,745

Seat closet (Photo: Manufacturer's website)

Small crossovers:

• Kia Niro - NIS 3,596

• Hyundai buys NIS 3,996 - NIS

• Skoda Kamik - NIS 4,021

• Seat Arona - NIS 5,492

Peugeot 3008 (Photo: Joel Schwartz)

Medium crossovers:

• Kia Sportage - NIS 4,055

• Hyundai Tucson - NIS 4,136

• Chevrolet Equinox - NIS 4,332

• Peugeot 3008 - NIS 4,508

• Toyota Rav 4 - NIS 4,757

Skoda Octavia (Photo: Keinan Cohen)

Family:

• Hyundai Ionic - NIS 3,048

• Toyota Corolla - NIS 3,797

• Skoda Octavia - NIS 4,407

Tesla 3 (Photo: Keinan Cohen)

Electric:

• Hyundai Ionic 5 - NIS 4,532

• Tesla 3 - NIS 4,869

So what causes these price differences between the car? Several reasons can lead to this.

Adv. Tal Alon, director of the UMI insurance agency,

explains: “Every insurance company does its actuarial calculations and it is a complex process that includes a lot of data and variables. But, industry estimates say there are a number of factors that can affect the pricing of the basic insurance price of those models.

Country of manufacture of the model, cost of original parts of the manufacturer, in some brands the cost of parts is higher than others, the likelihood of the vehicle being stolen, in "stolen" brands usually higher insurance cost, maintenance costs and care of a specific brand ".

In other words, if you thought a stolen car was a problem that only interested those who woke up in the morning to an empty parking lot and broken glass (https://cars.walla.co.il/item/3479844), forget about it.

Demand for a particular model in the territories or demand for very expensive parts of a particular car - are the fuel of the car theft industry, an industry for which you pay the price in your car insurance as well.