Car rental insurance in Israel: what is mandatory, what your card covers and what to add

Every Israeli rental includes compulsory insurance for bodily injury, and almost all include or require collision damage waiver and theft protection, with an excess.

• Compulsory insurance (bituach chova): covers bodily injury to people, required by Israeli law for every vehicle.
• Third-party property: covers damage to other people's property. Eldan states a third-party limit of 600,000 ₪.
• CDW (collision damage waiver): limits what you pay for damage to the rental car to the excess.
• TP (theft protection): limits what you pay if the car is stolen to the excess.

Sixt states that CDW and TP are mandatory for all vehicles in Israel, and Eldan includes them in its rental price with a deductible. A few international brands allow you to decline CDW and TP with written proof of credit card coverage, but then oblige you to buy extra third-party liability cover. In practice, assume CDW and TP are part of the price.

The excess is the maximum you pay for damage or theft under the basic cover, and it typically ranges from about 2,000 to 4,000 ₪ at Israeli suppliers.

• Eldan: a deductible of 2,000-4,000 ₪ depending on the vehicle group.
• One international brand in Israel: $500-1,000 depending on the vehicle type, with optional Super CDW and Super TP to reduce it to zero.
• Young drivers: the excess and deposit can be higher under 24 or 25; check your rental terms.

The deposit is different: it is an amount blocked on your credit card at pickup to guarantee the excess, fuel, tolls and fines. Eldan states a minimum of 2,700 ₪ and requires a credit card in the driver's name. If you buy the supplier's own excess waiver, the deposit is usually reduced; if you buy third-party full coverage elsewhere, the desk still blocks the full deposit. Make sure your card limit can absorb it.

Often not: several major card programmes exclude Israel from their rental car coverage, so check your card's terms in writing before relying on it.

• Visa (US): Visa's auto rental collision damage waiver page states that coverage is not available in Jamaica, Ireland or Israel.
• Other cards: benefits depend on the issuer and the exact card. Some premium cards have added Israel over the years and others exclude it. Call your issuer and ask for a letter or the benefit guide page that confirms Israel coverage.
• If your card does cover Israel: Israeli suppliers may still require their own CDW and TP. Where a supplier allows you to decline, it typically asks for written proof of coverage and makes extra liability cover mandatory, as one international brand's Israeli terms do.
• Secondary vs primary: some cards only pay after other insurance; read whether yours is primary or secondary.

Bottom line: do not plan your budget around credit card coverage in Israel unless you have it in writing.

You can reduce your excess in two ways: buy the supplier's excess waiver at the desk, or buy a full coverage option when you book on a comparison site. Both work, but differently.

• Desk excess waiver (Super CDW, SCDW, EW): sold by the rental company. It reduces your excess, often to zero, and usually reduces the deposit. It tends to cost more per day, and its own exclusions still apply. Eldan's waiver, for example, does not cover tyres, roof, undercarriage or missing accessories.
• Full coverage bought when booking: sold with the booking by the comparison site, through an insurance partner. If the car is damaged, the rental company charges your excess from the deposit, and you then claim a refund from the coverage provider with the rental agreement, the damage report and the receipts. It is usually cheaper per day and can cover items the desk excludes, such as glass and tyres; read the policy wording.
• Do not buy both: if you have full coverage from the booking, you can politely decline the desk's excess waiver. The agent may insist; you are not obliged.

DiscoverCars offers a full coverage option at booking, and lists Israeli suppliers such as Shlomo Sixt, Eldan, Avis/Budget Israel and Hertz with free cancellation up to 48 hours before pickup. Check Economybookings for a second quote. These are affiliate links: we may earn a commission, and your price is unchanged.

Standard CDW in Israel usually excludes tyres, windscreen, roof and underbody damage, plus anything caused by breaking the rental terms.

• Tyres, glass, roof and underbody: an international brand's Israeli terms state that its CDW does not cover tires, windscreen, rooftop and underbody; Sixt says its cover does not include tyres or undercarriage.
• Keys and accessories: lost keys, documents or accessories are usually charged in full.
• Negligence and misuse: wrong fuel, driving under the influence, unauthorised drivers, off-road driving.
• Prohibited areas: rental cars may not enter Palestinian Authority Area A or leave Israel. Eldan explicitly excludes Area A, and insurance does not apply there.
• Fines, tolls and towing: not insurance matters; the rental company charges them to you with a handling fee.

Most insurance disputes are won or lost at pickup: document the car before you drive.

At pickup:
- Walk around the car and photograph or film every panel, the wheels, the windscreen and the roof, with timestamps.
- Make sure all existing damage is marked on the check-out form.
- Photograph the fuel gauge and the odometer.
- Check the spare tyre and the reflective vest.

In case of an accident:
- Call the police on 100 if anyone is injured, and an ambulance on 101.
- Call the rental company's emergency line immediately; Eldan, for example, runs a 24/7 line (except on Yom Kippur) and a WhatsApp number for accident reports.
- Exchange details with the other driver: name, ID number, licence, plate and insurance company.
- Take photos of the scene, the cars and the documents.
- If you have third-party full coverage, keep every document; you will need them to claim the excess back.

Your cover only works if the person driving is on the contract and meets the supplier's conditions; most claim refusals come from these details.

• Young drivers: drivers under 24 or 25 usually pay a daily surcharge and can face a higher excess. One international brand in Israel charges drivers aged 18-23 an extra $12 per day; Eldan limits under-24s to certain car groups.
• Extra drivers: every driver must be registered on the rental agreement and show a licence at the desk. An unregistered driver is not insured.
• Licence conditions: if your licence is not in English, bring an International Driving Permit; a rental with an invalid licence can void cover.
• Fuel errors: putting diesel in a petrol car, or the reverse, is treated as negligence and is not covered by standard CDW.
• Unattended keys: theft with the keys left in the car is generally excluded from theft protection.
• Late reporting: report any damage or accident to the rental company immediately, not at return; most contracts require prompt notification.

For most visitors, the simplest safe option is the included CDW and TP plus a way to reduce the excess, either through full coverage at booking or the desk's waiver.

• Short trip, low budget: included CDW/TP, accept the excess risk, drive carefully and document the car.
• Families and longer trips: full coverage at booking is usually the best value; make sure your card can carry the deposit.
• You want zero deposit hassle: buy the supplier's own excess waiver at the desk, which often reduces the deposit too.
• Your credit card covers Israel in writing: check whether the supplier allows you to decline CDW/TP and what liability cover it will then require.

Whatever you choose, read the coverage terms of the exact offer before you pay, and check your rental terms when in doubt.