February/March 2015 saw the majority of Spanish car rental companies introduce an insurance excess. Prices which had previously included CDW (collision damage waiver) without excess, no longer included the excess and, as a consequence, the deposit required on collection increased from around 600€ - 800€ to around 900€ - 1900€ (amount depending on vehicle category). The optional extra cover (which, prior to the introduction of the excess, was just a top-up cover for tyres, glass etc.) became a combined excess waiver and top-up cover and also increased in price, from around 9€ - 13€/day extra to around 15€ - 20€/day extra.
Whilst contracting the excess cover direct with the car rental company offers excellent peace of mind, it's clearly not cheap. A much more economical alternative is to contract a 3rd party car hire cover, either for your particular dates or as an annual policy. We wholeheartedly recommend the leading UK provider of car hire insurance Questor, whose rates are as low as £2.50/day or £40 for an annual policy (with cover for up to 180 days).
Get a quote here: Questor car hire insurance
Note that if you do contract car hire insurance from Questor or from another 3rd party, you will be required to leave the excess deposit with the car rental company. In the event of loss of any of this deposit, you would claim it back from the 3rd party cover. Questor have fantastic customer satisfaction ratings so we're sure this will be a painless process!