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I don't understand the abbreviations: CDW, TP and LI

Switzerland
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565 posts
7 reviews
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I don't understand the abbreviations: CDW, TP and LI

A friend (she lives in Haifa) and I want to rent a car in Haifa for touring Galilee (2-3 days). As I am not an experienced driver my friend will drive. My questions:

- Is it better when I book the car (because of VAT) or it's better when she books (because she is the driver)?

- What is the meaning of CDW, TP and LI (I don't understand the abbreviations)?

- What has third-party liability to cover?

- Should I check with my credit card company and my insurance, if I have already all needed "pieces" or shall I just buy the whole package?

- Which insurances does my friend need?

- What else to think about?

Thank you for helping.

Edited: 06 August 2014, 20:20
NJ
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552 posts
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1. Re: I don't understand the abbreviations: CDW, TP and LI

If she is listed as a driver on the contract I believe you will be subject to VAT even though you are the primary person on the contract.

CDW is Collision Damage Waiver. This covers damage to the vehicle you are renting if damaged.

TP is Theft Protection: This covers if the vehicle you are renting if stolen

LI - Liability. This protects you for damage to other cars and/or people.

You for sure need to pay for Liability coverage. CDW/TP can waived if your credit card provides such coverage. Many credit cards that do provide this coverage exclude a few countries. Israel is one of these countries so be sure to check with your credit card issuer if they offer this coverage for Israel. If they do have them send you a letter confirming that offer coverage in Israel. This is a good confirmation of coverage for you and also the car rental company may ask for proof that your credit card provides coverage in Israel.

If your friend is doing the driving it may be worth it for you to have her rent the car. Even though she'll have to pay VAT she may save some money on the Insurance if she has an Israeli personal auto insurance policy (maybe one of the Israeli posters can confirm).

Edited: 06 August 2014, 20:38
Israel
Destination Expert
for Israel
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15,838 posts
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2. Re: I don't understand the abbreviations: CDW, TP and LI

If your friend is Israeli and will be listed as a driver on the rental you will definitely have to pay VAT. If you are not going to drive at all, there is no benefit for you to even be on the contract as you will be paying for your friend to be an extra driver, while you won't be driving.

Switzerland
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565 posts
7 reviews
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3. Re: I don't understand the abbreviations: CDW, TP and LI

Thank you very much for taking time to answer so quickly my questions.

I think I will not drive at all this time. I have the license but am planning to take some driving lessons during my stay in Eilat - which is probably after the tour in Galilee.

NJ
Level Contributor
552 posts
24 reviews
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4. Re: I don't understand the abbreviations: CDW, TP and LI

If you are not driving just have your Israeli friend take the car rental. You can always pay her if you wanted to pay for the rental.

5. Re: I don't understand the abbreviations: CDW, TP and LI

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