The first time I watched a cousin from Boston sign a rental agreement at Dublin Airport, he paused at the insurance section, looked up at me, and said: "Malachy, I have no idea what any of this means."
He was staring at acronyms — CDW, Super CDW, TP, PA, Excess — and a number that made him flinch: €2,500. That figure, printed beside the word "excess," is the amount the rental company would hold on his card if he skipped their additional cover. And it is the moment most North American travellers realise that car rental insurance in Ireland works differently than at home.
This article is what I told him that morning.
What the Rental Desk Is Actually Selling You
When you walk up to a rental desk in Ireland, the conversation always starts with CDW — Collision Damage Waiver. This is not insurance in the traditional sense. It is a waiver that limits how much you can be charged for damage to the rental car. The catch is the excess, or deductible: the amount you remain liable for before the waiver kicks in.
At most Irish rental desks, that excess sits between €1,500 and €3,000. The desk then offers you Super CDW, also called Excess Waiver, which lowers that liability for an additional daily charge — typically €15 to €30 per day. Theft Protection (TP) covers the vehicle if stolen. Windscreen and tyre cover may be offered separately.
Here is the part that catches North Americans off guard: the rental company places a hold on your credit card for the full excess amount. That €2,500 is not theoretical. It reduces your available credit for the duration of your trip. If you do not have sufficient available credit, you may be refused the car entirely.
My Irish Cousin's insurance does not follow this model. The insurance included in every rental carries zero excess and zero deductible. There is no hold on your card for the excess — we request a €1 pre-authorisation for tolls and parking. The price you see on the quote covers everything. There is no daily upsell at the counter because there is nothing to upgrade to. The highest level of protection is already included.
Why Your Credit Card Insurance Will Not Cover You Here
Many North Americans arrive believing their credit card's rental car coverage will protect them. In most cases, it will not.
Credit card insurance is secondary coverage. You must first pay for any damage, then submit a claim for reimbursement. The rental company still places the full excess hold on your card at pick-up. If damage occurs, you pay upfront and spend weeks navigating paperwork. The rental company has no obligation to help you — their obligation is to their own insurer, not to your credit card provider.
Beyond that, the hold on your available credit is immediate and firm. For visitors relying on a single card for the whole holiday, that hold can tie up precisely the funds you need for accommodation, fuel, and meals. Some credit card policies also specifically exclude Irish rental companies or vehicles over a certain size. The desk will not accept a letter from your credit card provider as proof of coverage. If you reject their insurance, they hand you the keys but the excess hold stays on your card regardless.
The practical problem: You arrive jet-lagged, and the agent tells you the excess is €2,500. You know your credit card covers it — eventually. But you still need €2,500 of available credit free for the hold. That is €2,500 of your holiday budget sitting frozen. When you are standing at a counter in Terminal 1 after an overnight flight, that is a lot of money to have locked away.
Third-Party Insurance — The Annual Policy Trap
A growing number of visitors arrive in Ireland having bought annual rental car insurance from a third-party provider — typically a UK-based company. Pay a flat fee of €50 to €100 and your excess is covered for the year, anywhere in the world.
In theory, this saves the daily upsell. In practice, it comes with the same catch: you still pay the excess upfront. The third-party policy reimburses you after you file a claim, often weeks later. The rental company places the full excess hold on your card regardless. And some Irish rental companies refuse to accept third-party insurance at all — their agreements state that only the insurance sold at the counter is valid. I have seen this happen at Cork Airport. The driver paid twice.
What I tell people: If you buy a third-party policy, check whether the rental company you have booked with accepts external policies. Do not assume that because a policy covers "Europe" it covers Ireland — some policies treat Ireland separately.
CDW vs Super CDW — What Each Actually Covers
The names sound similar, so let me break down what you are actually paying for at the counter.
CDW (Collision Damage Waiver) — Included in virtually every base rate. It covers damage to the rental car in a collision, with an excess of €1,500 to €3,000. CDW does not cover windscreen damage, tyres, the undercarriage, or the roof. It does not cover theft — that requires separate Theft Protection.
Super CDW (Excess Waiver or Super Cover) — Sold at the counter. Reduces the excess from €1,500–€3,000 to approximately €300–€500. Daily cost: €20–€35. Over ten days, that is €200–€350 to reduce — not eliminate — your liability. Same exclusions as CDW.
Windscreen and Tyre Cover — The most common exclusion from CDW. A cracked windscreen on an R-road costs €200–€500 to replace. This cover costs €5–€12 per day.
Theft Protection (TP) — Covers the vehicle if stolen. Daily cost: €10–€15. Often sold alongside CDW.
The My Irish Cousin position: The insurance in every rental covers collision damage, third party, roadside assistance, glass and tyre replacement, and theft. There is no CDW to upgrade and no Super CDW to buy. The excess is zero from the start. If the windscreen cracks, it is covered. If the car is stolen, it is covered. The price you see on the quote reflects this.
How Excess Works in Practice — a Real Scenario
You are reversing into a parking space at a hotel in Killarney. The space is tight — town-centre hotel car park designed for smaller cars than the saloon you booked. You clip a low stone wall. A scrape on the rear bumper, the size of two fingers.
Standard rental with a €2,000 excess: You return the car, the agent notices the damage, the repair is assessed at €800, and it is charged to your card immediately. If you have third-party insurance, you file a claim and hope to be reimbursed in four to six weeks. In the meantime, the €800 is gone from your holiday budget.
My Irish Cousin with zero excess: You return the car. The agent notices the scratch. The repair is covered. Nothing is charged to your card. No claim to file. No paperwork.
That is the difference. It is not about whether you are a careful driver. It is about what happens on the one day when you are tired, the space is tight, and a stone wall meets your bumper.
That said, no Irish rental insurance covers lost keys (€150–€300), misfuelling (€500–€1,000), or a burnt clutch from inexperienced manual drivers (up to €2,500). These are driver responsibility items.
The Practical Difference for a Two-Week Trip
Here is what a standard fourteen-day rental looks like with and without zero-excess insurance.
Standard rental with Super CDW upgrade:
- Base rate: €400
- Super CDW: €25/day × 14 = €350
- Windscreen and tyre cover: €10/day × 14 = €140
- Additional driver: €12/day × 14 = €168
- Card hold: €2,000 frozen for the duration
- Total out-of-pocket: €1,058 + €2,000 frozen
My Irish Cousin with zero-excess insurance included:
- All-inclusive rate: €550
- Super CDW, windscreen, tyre cover, one additional driver, cross-border: all included
- Card hold: €1 for tolls and parking
- Total out-of-pocket: €550
The difference is not subtle. And the second number does not change at the counter.
For visitors who want the full package — car, accommodation, and route planning — without layering separate insurance policies, Celtic Vacations build self-drive packages where the insurance is part of the arrangement. The driving is still yours. The logistics are not.
How to Read a Rental Insurance Policy Before You Sign
When you look at a rental agreement in Ireland, these are the sections that matter.
1. The excess figure. If it says €1,500, €2,000, or €3,000, that is your liability. If it says zero, you are covered.
2. The exclusions list. Windscreen, tyres, undercarriage, roof damage, unsealed roads — check whether each is covered or excluded before you drive mountain passes.
3. The cross-border clause. If you plan to drive to Northern Ireland, the agreement must explicitly permit it. "Republic of Ireland only" means you cannot cross.
4. The card hold. The amount of the temporary hold should be stated clearly. If it says €2,000 and you have a single card with a €3,000 limit, two-thirds of your available credit is consumed for the rental duration.
For a broader view of the full process, Renting a Car in Ireland: Complete 2026 Guide covers everything from booking to drop-off. If you are looking at the documents needed at the desk, What Documents Do You Need to Rent a Car in Ireland? lists exactly what to bring. And for understanding the fees beyond insurance — one-way drop-off charges, fuel policy traps — Hidden Car Rental Fees in Ireland: What to Watch For walks through every line item.
What My Irish Cousin Insurance Covers — the Full List
The insurance included in every My Irish Cousin rental covers:
- Collision damage — zero excess, zero deductible
- Third party liability and property damage
- Theft protection
- Windscreen and glass replacement
- Tyre repair and replacement
- Roadside assistance
- Cross-border travel to Northern Ireland — included as standard
What is NOT covered: lost key replacement, misfuelling (ring us before calling roadside assistance if this happens), burnt clutch in manual vehicles (book an automatic if you are not confident), and personal belongings stolen from the vehicle.
Beyond the insurance, the package includes a €1 pre-authorisation (not a €1,500–€3,000 hold), no upper age limit, one additional driver free, and a toll device with all charges included as standard.
The practical outcome: You arrive at Dublin Airport, we hand you the keys, you drive away. The price on your confirmation is the price. Nobody asks you to upgrade anything at the counter because there is nothing to upgrade to. Get a quote from My Irish Cousin and the insurance conversation is over before it starts.
