In NYC there are no taxes and fees at all when using points. But relying on credit card insurance coverage is not an issue for me because I have my own. (And I'd recommend everyone does too, even a non-drivers policy.) Just an FYI that no credit card insurance coverage or LDW will cover damage to another vehicle. It only covers damage to the rental vehicle itself...
Hertz denies that this new redemption option is intended to replace the free days option, yet nobody will get back to me about why I don't see a free days option anymore at the HLEs in Manhattan. Frustrating that I am a Presidents' Circle member and a member of the Hertz Hub too. Tells you a lot about how how they treat their most loyal customers...