Fuel prices have risen significantly recently, but now another factor may adversely affect the cost of living: the rise in car insurance prices.
According to Tamar Gerzon, CEO of bestie, the digital platform for finding car insurance: "2021 was a record year for vehicles that hit the road - more than 300,000.
"The Corona has reduced the number of trips, but with a return to the routine that is characterized by an increase in the number of new vehicles on the road, and with them also the increase in road accidents - premium prices have soared."
These increases, which, among other things, "correct" the price decreases of 2020 and part of 2021.
Depending on the number of cars on the road, the prices of insurance policies also went up.
According to data from the Besti website, the price comparison site for insurance, there has been an increase in compulsory and comprehensive insurance prices for leading vehicles.
Thus, for example, the mandatory and comprehensive insurance price of the Skoda Octavia 2015 is NIS 3,863 in February 2022, compared to NIS 3,344 in September 2021 - an increase of 13.5%.
The mandatory and comprehensive insurance price of the Hyundai I-20 from 2014 in February 2022 is NIS 2,542 compared to NIS 2,348 in September 2021, an increase of 7.5%.
When it comes to the Toyota Corolla from 2017, it is NIS 3,338 in February 2022 compared to NIS 3,118 in September 2021, an increase of about 7%.
Shai Sadeh, chairman of the General Insurance Committee at the Bureau of Insurance Agents, told Israel Today: "The main reason for the increase in insurance prices is the spare parts crisis in the car industry in the world.
Once there are no spare parts in the world, spare parts in Israel become more expensive.
Insurance companies pay more for spare parts - and that rolls over to the consumer.
At the same time, because of the crisis there is a significant increase in car thefts, for spare parts.
However, because the insurance market is competitive, competition moderates the price increase.
Revenues from the car insurance industry are the largest in the insurance market, so no company will give up its market share. "
Vehicles on Israeli roads // Photo: Avishag Shear-Yashuv,
Increase also in compulsory insurance
By field, the price increase may be volatile.
"The increase can range from 5% to 10% in some companies, and it varies from vehicle to vehicle. There can be a significant jump in 'problematic' vehicles, such as 'stolen' vehicles or with more expensive spare parts. However, I estimate prices will stop at some point Because of the competition. "
Field emphasizes that there is also an increase in compulsory insurance prices which stands at 8% -5% last January.
"Here it is due to a decrease in profitability. Due to the increase in road accidents the insurance companies pay significant compensation, which makes them increase the cost of compulsory insurance."
And how can prices be lowered?
Gerzon: "You should invest in the search, use digital tools and not compromise on one phone call to a company or agent. Be exposed to as many offers as possible. There are parameters that should be emphasized during the search, such as low mileage and children under 15. If not driving on Saturday it can significantly reduce The policy. Even if there is a company car, it can lower the policy. "
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