It's particularly rough since the rental company also charges me 1.75% on both the debit and the credit (which is their fee that they pay to the credit card companies for using their service).
And, the credit card company changes me 2.5% on both the debit and the credit (which is their fee for making a currency transaction, which is already in addition to the commision they made on doing the currency exchange).
In total, I'll be paying $510 in fees for the rental company to debit and credit that $6000 to my card.
The problem with their CDW is that even if I pay the $1250, that only limits my liability in the event of an accident to $2,000.00 (instead of $6,000). But, it does not cover overhead damage, windscreen, tyres or under body damage. I am also not covered if the accident occurs on an unpaved road. You may not have noticed, but I see a lot of unpaved sections of road in Australia, particularly in the National Parks which is where we intend to spend a lot of time. So, it'll cost us $1250 to reduce our liability by $4000. That means I'm paying them 31% ($1250) of that $4000 and I still have to additionally pay the first $2000 in any damages. It just doesn't seem like a good deal to me and my husband is used to driving much larger vehicles here in North America, as the combined length of our truck and trailer is 46 feet, and he's never had an accident in the 100,000 km of driving we've done in the past 10 years. I guess in the end, I'll let him decide. He's just feeling very uncomfortable about handing over $6000 to someone with no recourse if they decide not to give it back. It'd be pretty hard to sue them from Canada.