just returned from a wonderful trip to Isreal. Have had a great time. The only real negative issue was the rental car. I booked with DOLLAR CAR RENTAL through http://israelairportcarrental.com/ inclusive insurance.
When picking up my car the rental car company in Tel Aviv mentioned that the insurance is invalid and my rental agreement has to be redone. Result...I was charged 40% more (USD 340 instead of 240) and the service was extremly harsh and rude (while picking up the car and dropping it off). I had no chance to go elswere sind Dollar/Thrifty is outside of the Airport and with Family and Kids the last thing you want to do is run around a city finding a car at the start of your vacation. Not even talking to the manager helped.
Bottom Line....I highly recommend not to book a DOLLAR CAR or THRIFTY Car in Tel Aviv.