I told the agent at the counter that I had comprehensive and collision through my insurance company that covers me when I travel to Canada. He said it didn't matter It was required that I purchase rental coverage for their area. After leaving I called around and found out this was not true. He should have been able to take my insurance information and not charge me for his coverage. After looking at reviews online the same location has done this too many people. They have 1 star reviews and people are very angry.
Possibly - there would have to be a direct prohibition on requiring insurance coverage or some impropriety in doing so that is deceptive or unfair - such as they get kick backs from or own the insurance company. Other than that- if they refuse to accept your insurance with your promise that driving in a foreign country is fully covered - it is their right to refuse rental and your right to take your business to a competitor. If that competitor profits from that - or goes bankrupt with piles of wrecked car losses in Canada, the market will tell.
Responses provided represent entirely un-researched, casual opinions and cannot be relied upon in any way or manner as legal advice. No communication here is intended to establish an attorney-client relationship.
Your question is better answered by the consumer panel. Even so, you should consult with a Canadian attorney.
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