Third party car excess insurance - CDW v excess?

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I used the MSE comparison site listed on their page to get a quote for our trip to Portugal.

I note that some quotes cover "European Excess" and others cover "European Excess and CDW Insurance"

I'm a bit confused by this. As I thought any rental has insurance and you pay the excess in case of an issue - the CDW insurance being the extra you pay to reduce your excess. I likely have it wrong - but not sure how this applies to third-party excess insurers.

Thanks
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