Compulsory car insurance rates are currently NIS 1,098-2,530.
Compulsory car insurance rates are currently NIS 1,098-2,530, after rates were slashed in recent years. The Ministry of Finance reports that compulsory car insurance premiums have fallen 40% since January 1998. Despite the fall in premiums, there are wide differences in the premiums charged by difference insurers. The ministry’s website provides a special table to calculate these differences.
According to the Ministry of Finance, compulsory car insurance premiums are based on seven criteria, including engine volume, the age and gender of the driver and how long he or she has held a license, and so on.
Only Bituah Haklai Central Cooperative Society Ltd. calculates premiums on the basis of all seven variables. Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), Menorah Holdings Ltd. (TASE: MORA1;MORA5), Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5) and Shirbit Insurance Company Ltd. do not take engine volume into account. Except for AIG-Golden Insurance Company Ltd., Bituah Haklai, and IDI Israel Direct Insurance Ltd. (TASE: IDI), no other insurance company takes the driver’s gender into account. The only common variable in calculating compulsory car insurance premiums is the driver’s age.
Published by Globes [online], Israel business news - www.globes.co.il - on July 5, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006