What You Need to Know About Insurance When Renting a Car in Israel

sixt rent a car in israel

Israel offers travelers a wide variety of attractions such as the Dead Sea, the Wailing Wall of Jerusalem and the nightlife and restaurants of Tel Aviv. Renting a car from Sixt can help you to experience Israel your way, without adhering to the schedules of public transportation. However, you need to understand the insurance options when renting. Making a mistake when purchasing coverage can be a financial disaster and put a damper on your vacation.

Here is what you need to know about your insurance options for rental cars in Israel

  • Required Coverage: Limited Damage Waiver (LDW)

This insurance is required for all vehicles. It will cost 40 percent of your rental fee, so make sure to factor this into your budget. If you decide to only take this liability insurance, you will also be required to leave $2,500 as deposit against any damage done to the vehicle.

  • Comprehensive Coverage: Collision Damage Waiver (CDW) and Theft Protection (TP)

These additional insurances cost between 10 and 15 dollars a day, which may be waived if they are covered by your credit card company. Check with your credit card issuer to check what is covered before you decide to rely solely on them. If you have comprehensive coverage through your credit card and plan to use it, bring documentation to the rental office with you. This insurance does not cover any damage to the tires or undercarriage of the vehicle, so drive carefully.

If your credit card company offers coverage, you need to call them and advise them of your rental. While you are on the phone, take the opportunity to ask the representative about any aspect of the coverage you do not understand. This is not the time to be in a hurry or have a misunderstanding, so call before you leave home.

  • Limitations of Coverage

Your rental car is only covered within the state of Israel, Taba and the territories of the Palestinian Authority. If you want to leave these areas, we can help you make other arrangements. Should you go outside of the covered area, your insurance will be voided and you will be fully responsible for any and all damages that may occur.

Ways to Save Money on Your Rental in Israel

  • You can avoid paying the 16 percent Value Added Tax (VAT) if you have a foreign passport, meaning, a passport from any country that is not Israel (this applies only for those who don’t have Israeli citizenship)
  • Reserve your vehicle and pay in advance. This is the least expensive way to rent a car and can save you a lot of money. You can pick your car up from the airport and be on your way quickly.
  • Return your rental car with a full tank of gas. Fuel costs can be expensive and you will be charged if you return the vehicle with the gauge sitting on E.

Tips for Navigation in Israel

  1. You may feel intimidated at the thought of driving in Israel, but you will be just fine if you keep cool and don’t allow yourself to get flustered. Many Israeli drivers may honk their horns,  but do not allow this to concern you in the slightest and just keep driving carefully.
  2. Israel posts signage in English, Hebrew and Arabic. Don’t worry if a sign is in a foreign language, as it is often posted farther along in English. You should use a GPS or an app for your phone to navigate, but have a passenger read the directions to you or use the voice function. It is illegal to use a phone while driving anywhere in Israel.
  3. If you encounter a circle, otherwise known as a roundabout, keep in mind that the car to your left always has the right of way. In other words, the car closest to the center of the circle. If you are traveling in an outside lane in a round, allow those closer to the center to merge into your lane to exit the circle.
  4. Under no circumstances should you turn on a red light. This includes right turns.
  5. Highway Six is the main toll road in Israel. You can use this road in a rental car, but be aware that there are no toll booths like those found at home. The toll is charged to the license plate number. Since you are driving a rental, the toll will be added to your rental bill and charged to your credit card. Keep in mind that using Highway Six can save you a lot in fuel and time, so the toll is often a value.
  6. Always lock the car when you park it, and do not leave personal items inside. Expensive electronics or pricey luggage left within view on the other side of a pane of glass is an invitation to destruction and petty theft in virtually every country in the world.

In summation, car rental insurance can be easy with Sixt. Once you have successfully rented a car with Sixt in Israel, you can enjoy the beauty of the country at your own pace, without being forced to adhere to the dictates of public transportation!

Book with Sixt in Israel today from anywhere in the world. Drive safe with Sixt!

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