The insurance companies' trick: A thief caused an accident - the driver pays
Drivers whose cars were stolen and damaged in an accident discover that the claim is recorded in their insurance history, even though they were not driving the vehicle. The result: an increase of about 15% in the policy and even a risk that companies will refuse to insure them.
One of the cynical tricks in the insurance industry has surfaced in recent days following an investigation by the Israel Insurance Agents Association. The Association received complaints from drivers whose vehicles were stolen and later recovered, but during the theft, the thief caused an accident and damage to the car.
It has come to the attention of 'Maariv' that in cases where the driver has comprehensive insurance, the insurance company covers the damage, but for some reason, it records the accident in the car owner's driving history as a claim filed by them. The claim can involve bodywork damage, damage to the chassis, the ignition system, the car's computer, and more.
Therefore, even though the driver is not at fault for the accident (since it was caused by the thief), the insurance company requires them to pay an additional premium of about 15% for the comprehensive insurance upon renewal of the policies, which increases the cost of the policy by hundreds of shekels per year.
If, heaven forbid, the vehicle is stolen again and damaged once more, the premium payment upon renewal could be doubled at best, or the insurance company might not agree to insure the driver at all. To qualify for the maximum discount on a policy, a driver must not have accumulated any claims in the last three years.
Another absurdity in the behavior of insurance companies is that if the vehicle was stolen, no accident occurred, and it was found, the insurance company does not require an additional payment for the policy.
This behavior is causing much resentment in the Capital Markets, Insurance and Savings Authority at the Ministry of Finance. The Authority believes that profitability in the auto insurance sector is higher than usual, and in light of the decrease in the volume of auto claims, they were required to lower rates. When 'Bituach Yashir' initially refused to comply with the guidelines, the Ministry of Finance prevented it from marketing new policies until it lowered the rates.
The auto insurance market is very competitive, partly thanks to the entry of direct companies such as 'Libra', 'Wobi', and others. Upon learning of the problem, Moshe Ben Porat, President of the Israel Insurance Agents Association, appealed to the head of the Capital Markets Authority at the Ministry of Finance with a request to address the problem and prevent the continued fleecing of the insured. According to him:
'There is no reason in the world for a driver to go to sleep, for his car to be stolen in an accident, and for the insurance company to damage his insurance history. What is insurance for?'
