An average family will be required to pay an additional NIS 4,000-5,000 once the son or daughter passes the test/ShutterStock
Insurance for young drivers is a serious financial blow to parents and a good source of profit for the insurance companies, which charge a large price increase to the cost of comprehensive insurance when they are required to cover drivers aged 17-23.
Libra launched today a new insurance for new drivers, independent of the company that insures the vehicle.
The parent can purchase it for a daily fee, without changing the terms of their much cheaper insurance, using the service app known as Chik.
The price: NIS 30 per day, with no limit on kilometers and no limit on the number of sessions per year.
The insurance covers up to 3 drivers who will drive the vehicle in the same period of time, at no additional charge. And unlike other insurances, it does not require the installation of an external component that monitors the driving, or require the purchase of insurance for several days consecutive, with a cost accordingly.
Libra's insurance pays off if the new driver drives up to 3 times a week/ShutterStock
A Walla Car inspection shows that adding a new driver to the policy of veteran drivers usually makes them more expensive by 60 to 100 percent, an average increase of 4,000 to 5,000 shekels per year.
There are also companies like Phoenix, which offers the Phoenix Smart service, which for an additional NIS 600 allows a new driver to drive 500 km in the same vehicle, and he and his parents can purchase additional kilometer packages at a cost of NIS 1.2 per km.
So Libra's new service is worthwhile as long as it is used up to 3 times a week, or 12 days a month.
Most of the new drivers do not drive every day, certainly when the new drivers at home are soldiers, who only drive on weekends, and long drives, the kind that will quickly deplete the mileage bank in the Phoenix insurance.
Some insurance companies offer, for example, adding coverage for a new driver for NIS 180 for three days, without a kilometer limit, which would cost only NIS 90 in Libra.
On the other hand, for a new driver who is expected to drive more than four times a week, it is better to pay the full amount already and add it to the parents' policy regularly.
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