It likely won't cover your excess unless stated. Autoeurope quite often offer two rates with a slightly higher one covering refund of excess. Don't pay for extra cover when you collect the car asit is much more expensive than arranging it seperately with the likes of insurance4carhire.

Popsy try a quote with http://www.economycarhire.co.uk their rates are all inclusive:-

Our Car Hire rates for Pisa Airport (PSA) are completely all-inclusive, with no insurance excess so there's nothing to pay in the event of theft or collision damage! The insurance cover is fully comprehensive and all taxes and surcharges are included. An extra driver is FREE of charge! The vehicles are all latest models and there is a FREE 24HR English language backup service. Additional charges may apply.

Thanks Spike and Glynis - I've also found another site which is part of insurance4carhire - dailyexcess.com which reduces the price if it's for a single trip

Hello,

I am trying to find a good deal on a car for when we are in Italy this May but I am a bit confused over this insurance excess issue. I have looked at the dailyexcess.com website and it does look like a very good deal at €20 for our 4 day trip which is much cheaper than what the car hire companies are offering. However, I have never bought the insurance seperately from the car hire company and I am not sure how it works. When we hired a car in the UK last year they gave us the option of buying excess coverage and for those who didn't, they charged something like £700 to your credit card which was then refunded if you brough the car back in one piece! I just want to be sure that if I take out excess insurance independently, would the car hire company just acknowledge my insurance or would they still charge a large amount of money on to my credit card because I am not taking out insurance with them?

Hope it makes sense
Thank you!

Only just seen this and too late to help Hayal but as it may be of interest to others, the answer is that even if you have your own excess insurance, the car hire company will still charge your credit card the excess amount as the excess insurance covers you as the policyholder, not the rental vehicle. After paying the excess, you then claim it back from your insurance company.