There are 3 types of car insurance: Laibility Insurance (Bituach Hova) – Which is mandatory by law. This will cover you and third parties in case of a bodily injury that has been occurred during a car accident. As stated this is a mandatory insurance any car owner needs to purchase.
Under the Israeli law – the liability regime that applies in case of a car accident is a strict liability. Meaning that even if you are not guilty in causing the accident. You are the one to blame and your insurance would be sued. This doesn’t mean that your insurance premium would increase on the renewal. However, if you have 2 liability claims In 3 years you may be declined by some insurance carriers.
Comprehensive Car Insurance (Bituach Mekif) – This covers damage done to your car from scratches to a total loss/ car stolen as well as third party coverage in case you damage third parties property with your car.
Third Party Car Insurance – in case you want to save some money, you belive you’re a good driver, or if your car is already old ( who will steal this car? : ) ) you can purchase third party liability that will only cover you for damages done to third party property. Make sure the policy includes towing services for you in case you are stuck and glass replacement in case It's broken.