Test Yourself: Is Your Car Insurance Really Comprehensive?

 (photo credit: SHUTTERSTOCK)
(photo credit: SHUTTERSTOCK)
Israeli law does not require car owners and drivers to insure their vehicles with a comprehensive insurance, but only a compulsory insurance that covers body injuries. However, almost all Israeli drivers choose to add comprehensive insurance to their car insurance package.
The rationale is simple - most of the vehicles on the road today are relatively new vehicles with high market value, and damage to them can lead to heavy expenses. Purchasing a comprehensive insurance guarantees coverage in the event of an accident or theft and prevents you from large and unexpected expenses, which can at times come close to the price of a new vehicle.
What is a comprehensive insurance coverage?
A comprehensive auto insurance guarantees coverage for damage to vehicles caused by theft, accident or as a result of natural disasters and fire damage. In addition, a comprehensive insurance includes third party liability coverage, which covers property damage caused to a third party due to use of the insured vehicle.
How do you make sure your insurance is as comprehensive as possible?
The various insurance companies' comprehensive insurance policies include many extensions, some of which are provided as part of the policy terms and some can be added at an additional premium on the base price. The basic policy clauses may also vary between the various insurance companies.
Do you want to be certain that your insurance is truly comprehensive? There are a few points to consider:
Scope of Liability
A comprehensive insurance policy includes liability for a third party that covers property damage caused to a third party due to use of the insured vehicle. To make sure your insurance is truly comprehensive, check the scope of third-party liability – what is the actual maximum amount of money the insurance company promises to pay in the event of a third-party damage.
Take into account that any amount beyond the scope of liability will be paid by you, so you may want to consider extending the scope of liability in case of third-party damages to cover all damages, including in the event of damage to expensive vehicles, or choose a comprehensive car insurance policy with a high scope of liability, such as, for example, a comprehensive The Phoenix Insurance Company’s insurance plan, in which the scope of third-party liability is increased to ₪2,000,000.
Coverage for Add-Ons and Accessories
Most of the vehicles available on the market today include many accessories and add-ons, from computerized control systems to multimedia and audio systems, whose cost is extremely high. Check if your comprehensive insurance policy covers accessories and car extensions and what percentage of coverage it provides in case of damage. A comprehensive the Phoenix' insurance, for example, covers additions and accessories up to 10% of the vehicle value (as of the day of the event).
Another important coverage includes damages to the car's lights and side mirrors.
Coverage for Earthquake, Strikes and Riots Damage
In times of strikes and riots, we are exposed to the sight of a mob that vent its anger on moving or standing vehicles. Photos of smashed, inverted and even burnt vehicles immediately raise the question of insurance. Images of vehicles submerged in a road sinkhole, which was opened following an earthquake, are not as common over here, but it is important to remember that Israel is located in an earthquake-prone area and it is impossible to know when the next earthquake will strike.
Coverage for damage caused by earthquakes, strikes or riots will ensure you receive compensation in the event of a car damage during this type of events.
A Stolen Vehicle or a Total Loss Vehicle Notice
The comprehensive insurance helps the driver in cases of car theft or total loss, two scenarios that leave the insured without a vehicle.
All comprehensive insurance policies include insurance coverage in the event of a total loss or theft of the vehicle and offer compensation for the full value of the vehicle; however, when is the damage defined as a total loss and when is a vehicle defined as a stolen vehicle? In the Phoenix's comprehensive insurance policy, 50% damage is considered a total loss and will give you the full compensation. In case of theft the vehicle will be defined as a stolen vehicle if it is not found after only 14 days.
Exemption from Installing Vehicle Protection Solutions
Many insurance companies condition the comprehensive insurance purchase in the installation of various vehicle protection solutions, which can cost thousands of shekels. The Phoenix's comprehensive insurance policy exempts a vehicle protection installation for vehicles that are worth up to ₪300,000.
Occasional Unlisted Driver Coverage
The driving of a person who is not included in the insurance policy eliminates the coverage provided by the policy, so it is important to include in the policy all drivers using the vehicle. However, there are cases where random drivers drive the vehicle for a short time, such as valet parking services in a car park or upon delivering the vehicle to the garage. Therefore, it is important to check if your comprehensive insurance policy includes coverage for the occasional unlisted driving of service providers.
Legal Protection
The comprehensive insurance includes third party liability coverage that covers property damage caused to a third party due to use of the insured vehicle. In the event of claims against a third party, the comprehensive insurance policy covers legal protection expenses. It is important to check the scope of the liability in this section as well.
Examining and comparing the sections and extensions included in your comprehensive insurance policy will help you understand whether your insurance is truly comprehensive and how much your vehicle is protected.