Bought a new car? Going overseas? Essential insurances not to skip

Behind every insurance we purchase, whether life insurance, health insurance, or car insurance, always stands the same principle: we pay the insurance company every month, so that in case we need to spend a large sum of money due to an unexpected event, the insurance company will cover the expense. The variety of insurances available to us is vast—life insurance, car insurance, home insurance, health insurance, travel insurance, and more. Each one is important, but only car liability insurance is mandated by the state, and hence the importance of this insurance.

This is insurance that covers bodily injuries that may result from the use of a car in the event of an accident, whether it's to the driver, passengers in the car, or pedestrians. In this way, the state ensures that anyone involved in a road accident and injured will be able to obtain funding for medical treatment, even if they cannot afford it. The state, in fact, prevents a situation where a person might choose not to purchase insurance and then be faced with a large expense they cannot afford.

However, it's important to remember two things regarding mandatory car insurance. First, although it is a standard policy and the law requires its purchase, there is still a difference in the prices of mandatory insurance offered by insurance companies, and therefore it is recommended to do an annual price comparison. Second, mandatory insurance only covers bodily and psychological damages. Damage to property, including car theft, is not covered under mandatory insurance, and therefore, anyone who truly wants to be covered should also purchase comprehensive car insurance, which will give them peace of mind in the following cases: if the car is damaged, if the car or other people's property is damaged, or if the car is stolen. Comprehensive insurance indeed involves an additional expense, but the cost of car repairs is very high today, and at the same time, the phenomenon of car theft is not subsiding, but on the contrary.

Flying abroad? Don't forget to insure yourself.

Another insurance worth expanding on is travel insurance abroad. Unlike mandatory car insurance, this insurance is not compulsory for purchase, but before you decide to waive travel insurance abroad, it's important to know that the moment you leave the borders of Israel, the National Health Law does not apply to you, and any medical expenses you may need to pay abroad will come out of your personal pocket, sometimes amounting to tens if not hundreds of thousands of dollars. Of course, no one likes to imagine a scenario where the dream vacation you planned goes awry, but it's important to be realistic. There are plenty of cases where we might need medical treatment or assistance abroad, ranging from a toothache to hospitalization due to illness or accident, so where is the question at all? For a few shekels, you can purchase travel insurance abroad and travel with peace of mind.

Let's remember that travel insurance abroad provides not only a necessary medical safety net but also covers additional aspects – from coverage for the case of cancellation or shortening of the trip under certain circumstances, to coverage for the loss or theft of suitcases. Each of these situations indeed does not happen often, but for the time it does occur, it's worth being covered. The cost of travel insurance abroad is relatively negligible compared to the total cost of the trip, and the benefits of this insurance are very great.