Coverage names and defaults shift from country to country, which is exactly why rental insurance overseas trips up so many travelers.
Third-party liability is typically built into the base rate and covers damage you cause to others. Collision and loss damage waivers cut what you'd owe for damage to the rental itself, usually sold as a daily add-on at the counter.
Check whether your existing auto policy extends overseas before you go — many domestic policies don't by default. Some credit cards bundle rental coverage as a cardholder perk, which can mean skipping the agency's waiver altogether.
Read the excess, or deductible, carefully: a cheap daily add-on sometimes hides a steep excess if something actually goes wrong. When it's unclear, ask the agent to walk you through what's covered before you sign.