Insurance companies are counting on your laziness: how to save hundreds of shekels when renewing your car insurance
Between 2021 and 2024, car insurance premiums jumped by an average of 42%, but since early 2025, rates have decreased by about 10%. Many companies still offer renewals at last year's prices, which often leads to significant overpayment for consumers.
Between 2021 and 2024, car insurance premiums saw an average jump of about 42%, and for some models, price increases even reached about 70%. The rising cost of spare parts and an increase in theft rates, in addition to gaps in existing regulation that inflate the prices of spare parts and which Minister of Transport Miri Regev refused to change, were the main factors for the price increases.
But after the wave of price hikes, since the beginning of 2025 the trend has changed and rates have recorded an average decrease of about 10%. Although this is not full compensation for the expensive wave that preceded it, since mandatory and comprehensive car insurance costs thousands of shekels, the price reduction should save at least hundreds of shekels.
However, the market structure shows that this discount does not always reach the consumer automatically. While the car insurance market is considered competitive and dynamic due to the mandatory annual renewal and the multitude of players, many insurance companies continue to offer existing policyholders a renewal at the same price as last year — an offer that looks worthwhile on paper, but in practice embodies an overpayment relative to updated market prices.
Competition in the industry, it turns out, is effective mainly for consumers who do not settle for the first offer: contacting competing companies, receiving price quotes online, and using them as leverage for bargaining with sales representatives often lead to an immediate cut in the policy price — without compromising the scope of insurance coverage or the amount of the deductible.
These gaps between theoretical tariffs and prices on the ground have not escaped the regulator's attention either. As you may recall, just a few months ago, the Commissioner of the Capital Market intervened and ordered eight insurance companies to resubmit reduced tariffs for approval.
The bottom line: if your insurance policy is up for renewal and you have been offered a policy at the same price as last year — it is likely that you are paying too much. A quick price comparison and refusing the initial offer online may save you hundreds of shekels.
