Renting a car in Israel can be a wonderful experience that allows you to explore the country at your own pace, but it’s important to be aware of the limitations, restricted areas, and numerous small details that can cost you dearly. This guide will save you money, prevent frustration, and help you get the most out of your journey in the Holy Land.

Choosing the Right Rental Company

When selecting a car rental company in Israel, there’s a wide range of options, from large international rental companies to small local firms. Hertz, Avis, and Budget lead the market thanks to their relatively young fleet, professional service, and extensive presence throughout the country. Eldan, which serves as a partner for Enterprise and National, is highly regarded for its personal service and competitive pricing.

On the other hand, local companies like Tamir and Europcar sometimes offer more attractive prices, especially for long-term rentals. Tamir in particular is highly appreciated by tourists for its friendly service and flexibility in rental terms. Europcar often offers unlimited mileage, which can be a significant advantage for those planning to travel throughout the country.

Companies to Avoid

Shlomo Sixt consistently receives negative reviews, with numerous complaints about hidden charges, poor customer service, and problems with vehicle returns. The main issue is that the company tends to charge customers additional fees that weren’t explained upfront, and sometimes even imposes fines for imaginary damages. It’s recommended to invest a bit more money and choose a more reliable company.

Where and How to Book – The Money-Saving Secret

The Smart Way to Book

Here lies one of the most important secrets: always book through the Israeli websites of the companies, not through international websites. Instead of using budget.com, go to budget.co.il. The difference can be significant – Israeli websites display all taxes and charges upfront, while international websites might surprise you with additional charges when picking up the car.

The reason for this is the differences between various markets and local regulations. When booking through a foreign website or travel agency, the initial price looks attractive, but at the moment of truth at the rental counter, additional fees may pop up that can double the cost. It’s not just about money; often, bookings from foreign sites aren’t even found in the system, creating unnecessary delays.

Required Documents and Vehicle Pickup Process

To pick up the car, you’ll need three basic documents: a driving license from your home country (American or international driving license), passport, and tourist visa. Most tourists arrive with a B2 visa, which allows stays of up to 90 days, providing VAT exemption on car rentals. If you have a different visa or if you’re an Israeli resident, you’ll be required to pay 17% VAT on the rental.

The Mileage System – The Limitation That Surprises Tourists

How Many Kilometers Is It Really?

Unlike what we’re accustomed to in most of the world, in Israel, unlimited mileage is not common. The system works according to three levels: rentals of less than 72 hours provide 250 kilometers per day, rentals of 3-29 days give 4,000 kilometers for the entire period (regardless of whether it’s 4 days or 25), and rentals of 30 days and above allocate 4,000 kilometers per month.

These numbers sound generous, but when planning a trip that includes the Upper Galilee, Jerusalem, the Dead Sea, and Eilat, the kilometers run out faster than expected. The drive from Tel Aviv to Eilat is about 350 kilometers, and from Jerusalem to Gan HaShlosha in the valley is about 120 kilometers. Any excess over the quota costs 50 agorot per kilometer and can accumulate to a significant amount.

How to Plan Wisely

The solution is to carefully plan the route, and sometimes even return the car in the middle of the trip and pick up a new one. It sounds complicated, but in certain cases, it can save hundreds of shekels. For example, if you’re spending 3-4 days in Jerusalem and its surroundings, where you mainly walk or use public transportation, it’s worth considering returning the car and picking up another before moving to the Galilee or the south.

Insurance – Why You Should Take Local Insurance

The Trap of Foreign Insurance

Car insurance is one of the most confusing topics for tourists. Although it’s possible to purchase travel insurance or credit card insurance, the Israeli reality is different. Foreign insurance typically doesn’t cover damages that occurred in Israel, and claims can be complicated or impossible when you’re already back home.

While the price of local insurance is 80-150 shekels per day (about $20-40), it sounds like a high amount but can save you thousands of shekels in case of an accident or damage. What’s important to understand is that Israel has many minor damages – scratches from tight parking, damage from stones on the road, and even damage from extreme sun. Local insurance covers everything and allows you to drive with peace of mind.

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Territorial Restrictions – Where You Can and Cannot Go

Israeli car rental companies categorically prohibit travel to the Gaza Strip, most areas of the West Bank, and any foreign country. The restrictions on the West Bank are particularly complex – you’re allowed to drive on main roads, but forbidden to deviate from them or enter Palestinian cities.

The permitted roads are Route 60 (the main road from north to south through Bethlehem, Jerusalem, Shiloh, and Nablus), Route 1 (from Jerusalem to the Dead Sea and toward Tel Aviv), and Route 90 (along the Jordan Valley from the Dead Sea northward). You can visit Masada, Qumran, and the northern Dead Sea beaches like Ein Gedi and Kalia Beach without any problem.

Checkpoints and Security Checks

There are permanent checkpoints at the entrance and exit from West Bank areas. The soldiers usually identify tourists and let them pass without problems, but it’s important to be prepared with a passport and visa. The golden rule is to cooperate, not to joke around, and under no circumstances to give rides to unknown people from the territories into Israel.

Alternative for Trips in the Territories

If you still want to visit cities like Bethlehem, Jericho, or Ramallah, there are two rental companies in East Jerusalem that allow travel throughout all territories: Dollah Car Rental and Jerusalem Rent Car. Their vehicles aren’t always in perfect condition like those of the major companies, and the service is more limited, but it’s the only option for visiting all territories.

The Uniqueness of Israeli Driving

Signals and Traffic Rules

While traffic lights operate according to the Vienna Convention, like in most of the world except the United States, they display yellow and red together before turning green. This signals that the green light is about to come, and drivers behind start honking. Don’t take these honks personally; it’s a kind of national sport in Israel.

Signs in Israel appear in Hebrew, Arabic, and English, and navigation is relatively simple. Roads outside major cities are similar to those in America, with gas stations, malls, and free parking lots at tourist sites. The main problem is in large cities, where streets are narrow, directions are confusing, and parking is expensive or nonexistent.

Parking and Transportation Challenges in Cities

In the Old City of Jerusalem, drivers must present special permits to park, and tourists need to find parking outside the walls and continue on foot. In Tel Aviv, parking costs 15-25 shekels per hour, and lines are long. The best solution for large cities is to leave the car at the hotel, which usually offers limited parking, and use public transportation or light rail.

Fuel Prices and Service Stations

Fuel Costs and Differences from Abroad

The current price of fuel in Israel ranges between 7-7.4 shekels per liter, which translates to about $1.9-2.1 per liter. Although this may sound expensive compared to the US, there’s an important point: regular fuel in Israel is octane 95, compared to octane 87 in America. This means you’re getting higher quality, but paying more.

The refueling process in Israel can be confusing for tourists, as the screens at gas stations are only in Hebrew. However, Google Translate app can instantly translate the camera, but there’s a simple trick: the system asks for the vehicle number (7 digits) and Israeli ID number (9 digits). As tourists, you can simply type 1234567 for the vehicle number and 123456789 for the ID number.

Car Usage Strategy – When It’s Worth It and When It’s Not

Where a Car Is Essential

There are areas in Israel where a car is almost necessary. The Upper and Lower Galilee, with sites like Rosh Pina, Safed, Capernaum, and the Sea of Galilee shores, are very difficult to explore without a car. The same is true for the Dead Sea, Ein Gedi, Masada, and the Judean Desert. While Eilat is accessible by train and bus, touring the south – Yotvata Hai-Bar Nature Reserve, Ramon Crater, and Mitzpe Ramon – requires a car.

Where Public Transportation Is Better

In contrast, major urban centers are less suitable for car travel. New Jerusalem is connected by convenient light rail, and most sites in the Old City are accessible on foot from light rail stations. Tel Aviv-Jaffa is an ideal walking city, with an efficient bus network and bike sharing. Haifa is well connected by train to Tel Aviv and Jerusalem, and the Carmelit connects the seashore to the Carmel.

Cost-Saving Strategy and Cost Assessment

Car rental in Israel averages $30-50 per day for a small car, $50-80 for a medium car, and $80-140 for a large car or SUV. Prices include mandatory insurance but not comprehensive insurance.

Smart Saving Methods

One important trick is to consider renting for a longer period to avoid one-way return fees. Sometimes it’s cheaper to rent for a whole week and return at the same location, rather than rent for 5 days and return in another city. The fee for returning at a different location can reach 200-300 shekels.

Another trick is to check prices of local companies like Tamir or Blue Sky alongside international companies. Sometimes the difference can be significant, especially for long periods. It’s also worth paying attention to special deals that are very common in the Israeli market.

What to Check Before Picking Up the Car

Always photograph the car from all angles before departure – this can save you unnecessary arguments when returning. Specifically check that the air conditioning works (critical in the Israeli summer), that there are water reserves, and that all dashboard indicators are working. If there are existing damages, insist that they’re documented in the contract.

It’s also important to make sure you understand the locking system – many Israeli cars have a code-based locking system, which can be confusing at first. Insist on receiving a detailed explanation of all car systems before departure.

In Conclusion – Making the Experience Successful

Car rental in Israel can significantly enrich your trip and provide freedom and convenience that can’t be achieved in other ways. The key to success is good preparation – understanding the limitations, planning the route accordingly, and choosing a reliable rental company. When done right, driving on Israeli roads becomes an unforgettable experience that allows you to explore hidden corners and enjoy the stunning landscapes the country offers.

Car rental in Israel averages $30-50 per day for a small car, $50-80 for a medium car, and $80-140 for a large car or SUV. Prices include mandatory insurance but not comprehensive insurance.

Remember that the goal is to enjoy the trip and not stress about every small detail. With proper preparation and smart choices, the rental car will become the most enjoyable and convenient part of your trip to Israel.

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