car rental liability insurance

Becky,

This seems to be a frequent question on this board and you'll probably get a barrage of responses. Here's my two cents' worth. I've rented cars for over 10 years in most European countries. For maximum peace of mind and minimal hassle, just tell the Avis agent in Granada that you want maximum liability coverage with minimal deductible. He'll sell you "super CDW" or "excess liability" coverage (same thing). This will probably cost you in the range of 10-12 euros a day. As others will tell you, there are cheaper ways to buy such coverage other than thru the rental company, but super CDW thru the rental company offers the least hassle & the most coverage.

I think both Rick and Steve need a little more real world experience before making such sweeping condemnations. In the article Steve lists, Rick claims car rental firms start their CDW coverage at $15-25/day plus, he says, another $10-30 for super CDW (excess waiver) to bring the deductible down to $0. Yet the article points us to a company whose insurance may not be acceptable to the car rental company (I hope they tell you BEFORE you have an accident,) so you might be still stuck buying CDW at the counter, which is always more expensive. This policy would still leave you with a $250 deductible and, like those offered by credit cards, will reimburse you only after you've put up the money for the damage repair. So it's up to you to fill out all the paperwork, and hope your insurer pays out. Using the rental firm's super CDW means you just point out the damage and walk away.
With credit card coverage as well, note that they might cover CDW and super CDW. With most rental cars these days, you are getting some sort of CDW coverage included in the price....but by accepting that, you're credit card coverage now becomes null and void...it won't cover the extra cost for super CDW.
I've always found it difficult to get information on what CDW and super CDW is necessary when dealing with American car rental firms overseas. The company I use, carjet.co.uk, will rent me a car in Granada for a week in March for about $400 U.S., CDW down to zero. The company is very clear on what is covered, what is not, and how much it'll cost if you want to consider bringing down your exposure.
In fact, if you can rearrange your trip a bit, you can cut that bill even further...the same company (which is a broker, so it looks for the best deal) can give you an equivalent car at Malaga Airport for a week for about $105 (yes....$105!) including CDW to zero! Competition out of Malaga airport is very tough, so there are lots of deals available.