Comprehensive car insurance – what the insurance companies do not tell you – if you have sued the insurance company twice in three years (even if you are not at all guilty) the insurance company will not insure you.
Comprehensive insurance is insurance that drivers take out to insure third party vulnerabilities. Comprehensive insurance is activated both when the driver is at fault and in general – when the driver’s vehicle is damaged. This is insurance that limits your exposure to expenses arising from an accident. For example – you hit a luxury car in which the damage is NIS 100,000, this cost is passed on to the insurance, when your payment is up to the level of the deductible.
People’s fear of exposure causes most of us to purchase comprehensive insurance – a form of protection. But insurance companies are having difficulty getting comprehensive insurance for drivers who have had two claims in the past three years. The claims can be regardless of the cause of the accident and the culprits – even if another vehicle hit your vehicle at a traffic light, this is considered a claim, and two such (or similar) cases that are not your responsibility, will cause you not to be insured.
Against this background, the Knesset Finance Committee convened. Finance Committee members expressed severe resentment over the conduct of insurance companies, in relation to drivers who have had two claims over three years. The hearing revealed that insurance companies refuse to insure with comprehensive insurance, drivers who have been involved in two accidents for three years, even in cases where they are not at fault, or minor or hit-and-run accidents, in which they have no choice but to claim insurance to repair damage to their vehicle.
“These are the narrow economic interests of insurance companies and even drivers who have been paying insurance for many years may find themselves without insurance coverage in case they are involved in even minor accidents over a three-year period,” said Knesset members who participated in the committee. The chairman of the Finance Committee, MK Moshe Gafni, demanded that the Insurance and Capital Market Authority return to the committee within a month with explicit answers – what is the authority’s policy, when is a driver defined as negligent and is there no solution such as raising the premium, as was the case in the past? We accept that a driver will be left without insurance coverage. “
The hearing is an initiative of MK Aliza Lavi, who said: “Dozens of drivers are left without insurance and are exposed to enormous financial risk because they were involved in two road accidents, whether through their fault or not. There are many complaints that insurance companies refuse to insure drivers even in the case of only two claims over three years and there is no distinction between minor and serious accidents, degree of guilt or whether a claim could have been filed against the offending party in case of hit and run accidents. This is a broad phenomenon of pursuing narrow economic interests. I understand that there is a need for an economic model for insurance companies, but from here to such a severe injury to drivers, that there are no other alternatives – expose drivers to great dangers. I was approached by a man who had been insured for 30 years without any claims and then he had two minor accidents in three years and he was left without third party insurance. It is a failure that must not be allowed to continue. “
The representative of the Insurance Authority and the Capital Market, Danny Tzur, gave partial answers to the committee – “Insurance companies have a risk management policy according to which they operate. We have authority and define parameters in light of which it is possible to consider accepting or uninsured. “
President of the Bureau of Insurance Agents, Lior Rosenfeld – “What are two claims? It could be that someone parked his car in the mall and someone hit it and did damage but ran away and left no details missing. In that case if a person wants to activate his insurance to repair the damage This is called a claim. Natural damage is also called a claim. Lightning strikes a vehicle and the insured repairs a body repair, this is also called a claim. Two claims in three years can occur in the first month of the first year and in the last month of the third year. A driver who has a problem with property damage remains without risk. Anyone with a bodily injury gets a solution in Paul. In electricity companies, civil servants, members of collectives do not check even if 8 accidents in three years, ordinary vehicle remains without insurance. The same third party insurance – especially students and the weak “They stay without insurance.”
Member of the Chamber of Insurance Agents, Israel Gerty – “This is a problem that started with one company and expanded into the phenomenon. Today there is only one company that is willing to insure drivers with 2 accidents in three years (Shlomo Insurance Company) but the condition that each claim does not exceed 10,000 shekels. A lawsuit? NIS 2,000 is a lawsuit? Whoever came to court and in the end came out right, is this considered a lawsuit – it turns out that sometimes it takes two – three years and in the meantime is blocked. Insurance companies do what they want. We run into a problem and have to beg for coverage. Manage to get a special approval, so can not argue about the premium that can be 100% more.
“Even a driver over the age of 26 without an insurance history will not receive insurance, for example someone who first bought a car at the age of 30 when he was driving his parents’ car, has no insurance history and is therefore denied insurance on the grounds that he is hiding his insurance history.”
MK Gafni, commented on such cases and said – “It is not possible to prevent insurance from someone who did not have any accident and did not have claims because he simply did not own a car. I demand from the representatives of the Insurance Authority and the Capital Market to return to the Finance Committee with answers within a month from today. They need to answer us on how to deal with the phenomenon that whoever has a number of claims filed with the insurance companies, stop giving him comprehensive or third party insurance? We want to know what a definition of a claim is and whether each claim justifies withholding insurance. Is there a decision that anyone who files claims with the insurance company will not be able to insure their vehicle? And yes, is there a claim that can be defined as being the result of driver negligence and then leaving a driver without the option to take out insurance?
“This is something that is not acceptable to us as a Knesset, as a finance committee. We do not abandon a person even if he is negligent. There have been solutions in the past, including through the premium. The insurance authority and the capital market must provide clear answers in this matter. This is a real injury to the public.