43% of thefts in Gush Dan, another 24% in Sharon / official website, Pointer
The wave of price increases of the past year has not spared any field and has reached auto insurance as well. Citizens who examined renewing their car insurance in recent months discovered a tens of percent increase in the prices of comprehensive car insurance, and flooded social networks on the subject.
Adva (full name on file) from Tel Aviv, for example, who drives a Kia Picanto, told Walla! "It was time to renew my car insurance and I was shocked to discover that even though I've been driving flawlessly for 11 years, I received an offer about 66% higher than what I paid for the same insurance, to the same insurance company, the year before.
"The compulsory and comprehensive insurance I paid last year was about NIS 3,450, and the price quote from the insurance company is currently about NIS 5,720. Asking for quotes from other companies has already raised the amount to NIS 6,000 or more."
Car slaughterhouse. Within two years, there was a 230% increase in the number of thefts/seagull palms
Adva's brother, Shoham, who is currently enlisted as a reserve soldier, says, "Last year I paid NIS 3,590 for compulsory and comprehensive insurance, which was divided into NIS 1,795 compulsory and the same amount as comprehensive.
"The offer I recently received from the same insurance company, and with no change in my personal data except for an additional year of driving experience and a car that became obsolete by a year, was already about NIS 6,100, of which NIS 1,950 is mandatory and NIS 4,150 is comprehensive. After checking quotes from other insurance companies, this is the cheapest offer I've received."
Alongside them, other drivers complained about the insurance prices of several car models, such as 24-year-old Erez Rotgen, who has owned Hyundai Ioniq for the past three years and has had no accidents, and shared that the quotes he received to renew car insurance were about NIS 3,8, and that "I have never paid similar amounts."
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Car insurance. The car insurance price index in Israel has risen by 18.2% annually, while the EU average has risen by about 3%/ShutterStock
A survey by the Knesset Research and Information Center, presented during a discussion on the subject in the Economy Committee at the beginning of July, confirms consumers' feelings that they are required to pay significantly higher sums. The survey shows that between May 2022 and last May, the car insurance price index in Israel jumped by about 18.2% compared to the EU average, which rose by about 3%.
The first tendency of insurance consumers is to point the finger of blame at the insurance companies themselves, the high interest rate, the state of the economy or the war. But none of the latter was the factor that led to the sharp rise in prices.
The Capital Market Authority, which oversees insurance companies and whose data were incorporated into a survey presented to the Knesset Economic Affairs Committee, attributes most of the increase in car insurance prices to the distortion of the existing car parts market and the rising wave of car theft in Israel.
The distortion of the spare parts market comes in the form of the nature of the industry's conduct. The State Comptroller has already addressed this in the past when he presented differences of tens or even hundreds of percent between spare parts that come from car importers (some of whom also own garages that handle the brand) and spare parts importers only.
An examination by the Capital Market Authority found that the prices of spare parts, on the basis of which an insurance claim is paid and which affect the price of repairing the vehicle on the one hand, and the number of vehicles that will be disabled following complete loss on the other, are taken from the importers' price list from which the parts are purchased and not from the market price of the necessary part.
The prices, therefore, may be tens of percent higher than the price at which an identical spare can be purchased, and this phenomenon is one of the reasons for the increase in the cost of claims, and with it the increase in the policyholders' premium.
Jeeps and jeeps account for 46% of vehicles stolen / Ronen Topelberg
A major reason for the rise in insurance prices is the rising wave of car thefts. In the third quarter of this year, for example, there was a 94% increase in car thefts from Israel compared to the same period last year, and a 230% increase compared to the same period in 2021. This is according to Ituran research data on car theft from Israel.
The more sought-after the vehicle, the higher the level of risk in its insurance, and with it the price of insurance. Ituran data also show that jeeps and jeeps account for 46% of stolen vehicles, family vehicles and other private vehicles account for 32%, motorcycles 11%, commercial vehicles and trucks 5% each, and heavy equipment vehicles 1%.
The geographic region that suffers the most from the plague of car thefts, according to Ituran's research, is the Dan region, with 43% of all theft incidents, followed by the Sharon region with 24%, the southern region with 12%, the Shfela region with 8%, Jerusalem and Modi'in 9%, the north 3% and Judea and Samaria 1%.
This is not surprising in light of the main target of car thieves, as presented in Ituran's study, which is the Palestinian Authority areas of Tulkarm, Qalqiliya, Ramallah, and Hebron, where it is estimated that there are about 35 car slaughterhouses operating there, along with other areas controlled by the PA.
The data therefore show that the reduction in car insurance prices is mainly due to stopping the wave of car theft from Israel, and changing the nature of the spare parts market activity in Israel.
The Ministry of Transport responded at the time to the comptroller's report, among other things, by describing its activity to expand parallel imports.
The Israel Police said in response: "The Israel Police employs many resources and the best means at its disposal to eradicate the phenomenon of vehicle theft, including the use of technological means and focused activity on the covert and overt levels. We will continue to work at all times to arrest car thieves and bring them to justice."
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