I applied for and received a Chase Sapphire Preferred World MasterCard based on the recommendations here for my trip to Israel. No issue at all with my rental. The hertz folks were aware of the coverage and auto-declined the coverage for me and explained it was covered by my card at the rental counter. No fuss at all.
Before leaving, I did call and request a letter for proof of coverage. No issues there either. They emailed it to me within an hour, though I never needed it, in the end.
I was apprehensive as to how difficult it would be to get the rental with the insurance declined, but it was very simple. I was expecting a hard push to pay for it!