Three Types of Insurance, Three Different Outcomes
When you move to Israel, your existing insurance policies behave differently depending on the type. Car insurance, home contents, and life insurance each follow their own rules. Understanding them before you leave saves time, money, and potentially coverage gaps.
Car Insurance: No-Claims History May Not Transfer
Israeli car insurance companies operate independently from foreign insurers. Your no-claims bonus (NCB) — sometimes called a no-claims discount — accumulated in the UK, US, or elsewhere does not automatically transfer to your Israeli policy.
Some Israeli insurers will consider a letter from your foreign insurer confirming your no-claims history, but this is at their discretion and the discount offered is typically smaller than what you would have received after building a claims-free history locally. Expect to pay higher premiums for your first 1-2 years in Israel until you establish a local record.
What to do before you leave: Request an official letter from your current insurer confirming your no-claims bonus and the number of years without a claim. Have it translated to Hebrew or at least to English, and bring it when you approach Israeli insurers. Some will give you partial credit.
Israeli car insurance (Bituach Rechev) has two components:
- Mandatory insurance (Bituach Chova): Covers third-party bodily injury. Required by law. Administered through the Road Accident Victims Compensation Fund.
- Comprehensive insurance (Bituach Mekiph): Covers damage to your own vehicle, theft, and third-party property. Optional but strongly recommended.
Home Contents: Available from Day One
Home contents insurance (Bituach Tachtonim or Bituach Dira) in Israel is straightforward and can be arranged immediately upon taking possession of a rental or purchase. Israeli policies cover theft, fire, water damage, and liability.
Your home-country contents insurance ends when you vacate the property. There is no portability question here — you simply need to purchase a new Israeli policy. Prices are reasonable (500-2,000 NIS/year for a typical apartment depending on coverage level) and several major Israeli insurers offer English-language customer service.
If you are bringing valuable items from abroad — electronics, jewelry, musical instruments — declare them specifically when taking out your policy. Standard contents policies may have per-item limits that do not cover high-value single items.
Life Insurance: Keep What You Have If You Can
As discussed in the previous article, term life insurance from your home country is generally portable. If your policy allows you to continue paying premiums from abroad (which most do), keep it. Your premiums are locked at the rate you were underwritten for — switching to a new Israeli policy means new underwriting at your current age and health status, which is almost always more expensive.
Israeli ביטוח חיים (Bituach Chaim) is a standard product available from all major Israeli insurers. If you need life insurance and do not have a portable home-country policy, Israeli coverage is readily available. Coverage begins from the day the policy is issued after medical underwriting.
Disability Insurance: A Gap to Address
Home-country disability insurance (income protection) typically covers your income based on your home-country salary and is designed to pay benefits in your home currency. Once you are earning in NIS, these policies become less useful and may explicitly exclude coverage once you are no longer resident in the issuing country.
Israeli ביטוח נכות (Bituach Nechut) (disability insurance) can be purchased through Israeli insurers or as a rider on your pension arrangement. Once you are employed in Israel, your employer's pension contribution typically includes a disability component through the pension fund itself. Check this with your pension fund representative.
Practical Insurance Setup Timeline
Here is the recommended order for insurance setup around your aliyah:
- Before leaving: obtain no-claims letter from car insurer, confirm life insurance portability in writing, purchase gap health travel insurance.
- Day 1-7 in Israel: register with Kupat Cholim, add supplemental insurance within the 90-day window.
- When you get an apartment: purchase home contents insurance immediately.
- When you get a car: purchase Israeli mandatory + comprehensive car insurance (prices vary significantly — compare via yad2 insurance comparison or use an independent broker).
- After 3-6 months: review whether existing home-country ביטוח חיים (Bituach Chaim) and disability policies remain appropriate, and whether any need to be replaced with Israeli alternatives.