I know this is always a popular question in the forums so I wanted to give some good news to US tourists looking to rent a car in Israel. Chase just recently changed some benefits on their credit cards. All their credit cards that provided Car Rental CDW (Collision Damage Waiver) insurance coverage now offer this coverage worldwide with no exclusions for the typical countries (even for Israel, Jamaica, Northern Ireland, etc - the countries that were previously excluded). This applies to all Chase cards (both Visa & MasterCard). Of course please call the number on the back of your Chase credit card to confirm that this is the case for your card. Also you should get a letter from Chase stating that coverage applies in Israel as a confirmation for yourself and also to have in case the car rental company in Israel demands proof that the card provides insurance.
(Keep in mind some Chase credit card do charge a foreign transaction fee but they do offer some cards that don't).Edited: 05 November 2013, 01:45