Car rental insurance explained
Every EU rental includes third-party liability. Basic rates add collision (CDW) and theft cover, but leave an excess - often €800–2,000 - that you still owe and that is blocked on your card. The counter then sells you an excess waiver to remove it. An all-inclusive, zero-excess booking includes that waiver up front, so there is nothing left to buy at the desk.
The terms, in plain language
| Third-party liability | Covers damage you cause to other people and their property. In the EU it is included by law in every rental. |
|---|---|
| Collision Damage Waiver (CDW) | Caps your liability for damage to the rental car - but usually leaves an excess you still owe. |
| Theft Protection (TP) | Caps your liability if the car is stolen - again, typically with an excess. |
| Excess (deductible) | The amount you pay yourself before cover kicks in - often €800–2,000, blocked on your card at pick-up. |
| Excess waiver / Super CDW | The counter upsell that buys the excess down to zero. With an all-inclusive booking you already have this, so you can decline it. |
Where the surprise costs hide
Two things catch people out. First, the excess: even with CDW and theft protection, a basic rate leaves you liable for the first €800–2,000 of damage. Second, exclusions: tyres, glass and the undercarriage are often not covered on basic rates, so a windscreen chip or kerbed wheel becomes your bill.
How all-inclusive cover removes both
An all-inclusive Cardamar booking, handled by Sunny Cars, includes comprehensive cover with zero excess, plus tyres, glass and undercarriage. Because the excess is already zero, the desk’s excess-waiver upsell is redundant - you can politely decline it. You also avoid the card deposit that secures the excess, which is what makes renting without a credit card possible at many locations.
Car rental insurance - FAQ
What insurance comes with a rental car by default?
In the EU, third-party liability is always included. Basic rates usually add CDW and theft protection too - but with a significant excess you still owe after damage or theft.
What is the excess and why does it matter?
The excess (or deductible) is the amount you pay yourself before cover applies, often €800–2,000. It is the single biggest hidden cost in car rental and is blocked on your card at pick-up.
What does “zero excess” actually mean?
Your liability for damage and theft is reduced to €0. With an all-inclusive booking the excess waiver is already included, so a scrape or stolen car does not cost you the excess.
Are tyres, glass and the undercarriage covered?
On basic rates these are often excluded - a common source of surprise bills. Comprehensive all-inclusive cover includes them, which matters on gravel roads and tight city streets.
Should I buy the counter “excess waiver”?
Not if your booking is already all-inclusive - you would be paying twice. The desk’s excess-reimbursement product is exactly what zero-excess cover replaces.