Car rental coverage: how it works?

Car rental coverage is completely different from your private car insurance. In most countries, every single car rental car needs a basic package of coverage types, but the way you get them is different.

Here's what you need to know about car rental insurance.

All rental cars must have three main types of coverage in order to be eligible to drive on Israel:

CDW/LDW Loss Damage Waiver - basic mandatory protection, that covers primary damage to the body of the vehicle (scratches, dents, accidents, etc..) except the minimum deductible based on car group.

CDW/LDW does not cover damage caused to the Tires, Windows, Roof and underbody damage to the car.

THW Theft Waiver - basic mandatory protection that covers theft of the vehicle(own stuff not included).except the minimum deductible based on car group.

An Excess Charge of  $475 - $1000 will apply in case of damage according to vehicle type.

LIA - liability insurance (third party). Mandatory for customers that decline CDW/LDW & TP, provided these are covered by the credit card company. Required to cover items not covered by the credit card company as blowout’s, tire/trim damage, underbody damage and vandalism caused not as a result of vehicle collision and third party damage.

CDW/LDW & TP can be declined for example if renter has sufficient coverage by a US issued World Master Card or Canadian issued Gold/Platinum Visa/Master Card or France issued Visa Premier.

Written letter from credit card company must be provided to confirm valid damage and theft coverage's apply for car rentals in Israel.

Maximum security guarantee is up to the full value of the vehicle if CDW/LDW & TP (Damage & Theft coverage's) are declined.

There are what you need to know about damage, theft, and third party coverage:

CDW (Collision Damage Waiver) - this type of coverage will protect you from damage caused to the body of the car. In this case the maximum risk of $475 -$1000 will apply in the case of an accident. The amount of the deductible usually depends on the car category and may vary slightly from country to country and from the car rental supplier company.

There are few Exceptions: windows, tires, roof and underbody of the car. These four are not covered even with Full coverage.

THW (Theft Waiver) - this type of coverage will protect you from car theft(not include private stuff).

The most that you risk is the so-called "franchise". The amount of the deductible usually depends on the car category and may vary slightly from country to country and from the provider.

Exceptions are cases of car theft due to negligence. For example - if you leave your keys in the ignition or it is stolen from the area you were not allowed to drive in, the theft protection will not cover you and you will be responsible for the full amount of the car.

LIA (Liability) - this type of coverage is usually included in the CDW/LDW and will protect you from damage caused to third party.

It is recommended that you carefully read the rental conditions of a particular company and the country in which you plan to rent a car in order to find out the maximum LIA coverage.

Many car rental companies also offer additional coverage such as:

Super CDW/LDW is optional and will reduce the renter’s responsibility to Zero in case of damage to the vehicle. Can be purchased only in conjunction with CDW/LDW & TP.

SCDW does not cover damage caused to the Tires, Windscreen and Rooftop.

Super THW (TP-Theft Protection) is optional and will reduce the renter’s responsibility to Zero in case of theft of the rental vehicle. Can be purchased only in conjunction with CDW/LDW & TP.

PI (Personal Insurance) - covers personal damage to the health of authorized drivers or passengers of the vehicle you have rented. This type of insurance can only be purchased at the company's counter at the time of the rental agreement.

Roadside Assistance - roadside assistance covers the following:

Keys are lost, broken or locked in the vehicle.

The car won't start

Out of fuel

Assistance in wheel replacement in case of flat tire, etc.

Any coverage purchased for a car rental  is valid only if you follow the basic road rules and the rental agreement that you sign upon picking up the car.

In the event of damage while illegal driving for example: through a red light, speeding or drunk driving, the coverage is not valid and will not protect you, both with basic and full insurance. You will be liable for the full amount of damage.

Can You Use Credit Card Coverage To Cover Your Car Rental Costs?

Certain credit cards in the USA and Canada (MasterCard World, Chase, Visa Infinite etc ...) provide insurance (CDW & THHW) for car rental.

If you have checked with your credit card company and your card is one of them, be sure to bring your credit card coverage letter that describes your vehicle's coverage and the country in which it is valid.

If you are not sure about credit card coverage rules, please check with the cc company in advance to avoid unpleasant situations at the rental desk.