This is bad news for drivers: last June, insurance policy prices rose by an average of 1.5 per cent compared to last May. This is an increase of about 30 per cent compared to June last year. On average, in the past year the cost of car insurance has risen by about NIS 1,500.
This is according to data from Wobi, the digital insurance agency that operates a platform for comparing and purchasing insurance products, which compiles the comprehensive car insurance price index and compulsory insurance every month. An examination shows that the prices of car insurance policies continue to rise. For example, insurance for Honda Jazz increased by 5.4 per cent between May and June this year and between June last year and June 2023 by 40.7 per cent.
Nissan Eco-Micra insurance increased by 4.9 per cent between May and June this year and 35.8 per cent in one year. Suzuki crossover insurance has risen 4.6 per cent between May and June and 31.8 per cent this year.
Meanwhile, car thefts reached an all-time high this month – according to government databases, compared to the same period in 2022, this is an increase of 14 per cent, compared to any average quarter over the past five years, an increase of about 82 per cent.
The plague of thefts amounts to about 18,500 car thefts a year, causing financial damage estimated at NIS 1.85 billion.
In the first quarter of 2023, there were 4,884 vehicle thefts, compared to the same quarter in 2018, when there were 2,763 vehicle thefts.
Photo: Joshua Yosef // New Cars,
Wobi's assessment is that the price increase will continue until a solution is found and the number of car thefts decreases significantly, only in this situation will insurance companies succeed in stabilizing the negative balance in the car insurance industry.
The consequences of the plague of thefts, which the authorities are unable to prevent or at least curb their scope, are expressed on several levels. First, with a significant increase in insurance prices, in addition, due to the toughening of the requirements and conditions for vehicle protection on the part of insurance companies as part of their attempt to reduce risks, drivers are asked to install dedicated tracking devices whose cost reaches thousands of shekels. Beyond that, insurance companies are now conducting a deeper examination of the drivers' profile, thereby increasing the price gaps in premiums between the policies offered. The overall result of this situation is that many families in Israel are forced to spend thousands of additional shekels each year on car maintenance.
According to Nadav Shreibman, Director of Research and Analysis at Wobi: "The economic damage caused by the increase in car thefts is being absorbed by the Israeli consumer. Starting with the increase in insurance prices, which continue to climb consistently, dealing with higher price gaps in premiums between the policies offered according to the drivers' profile, and also with the toughening of insurance companies' requirements for vehicle protection. The cost of tracking devices such as Pointer and Ituran reaches thousands of shekels, but in the absence of their installation, the price of insurance will be significantly higher. As stated, a range of factors that is reflected in an increase in the cost of maintaining the vehicle, which amounts to thousands of shekels a year.
In the current situation, comparing car insurance prices can save thousands of shekels per household each year, so it is worthwhile to do it thoroughly and correctly, to carefully examine the terms of the proposed policy, in all its clauses."
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