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Potakas, I have had similar experience with Avis/Budget in France and I have the same questions you do. The car they gave me already had damage. I added a small scratch on lower front bumper. The want to charge me approx USD400. When I complained they instantly dropped it to 200. Seemed suspect. The collision insurance they originally offered me was an additional 200% of the cost of the car rental. It seems like this insurance coverage/damage costs thing is a profit center for them.