Each policy is different - but it can and the easiest way is to check with the company that you are going to rent the car from or that Untours is renting from and see what is covered. Note the deductible, which always comes into play in Europe. We always bought full coverage - including the policy option that covered the deductible. It certainly costs more - but on our trip to Spain it was worth every penny! Check the IdyllChat archives for lively discussions on this subject.