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For years going to Europe I was constantly declining all rental car insurance coverage because I thought erroneously that I was covered under ICBC roadstar (Only US in reality). I'm pretty sure I was covered by my Mastercard in case anything happened, which never did apart from a few traffic tickets (knock on wood).
But it sounds like agencies in places like Ireland, Iceland, and the UK are at another level when it comes to forcing their insurance on you.
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