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Car rental insurance woes

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First, I am astounded by how challenging it's been to get a clear answer to my question.

It seems that if I rent in Germany and use a Chase Sapphire
Preferred or an AMEX Premium Extra card for my rental, I have good coverage as far as damage to my own rental car or injury or loss of limb or life (as well as for return of remains to the U.S.) for me or for passengers in MY car.

BUT, what if one is at fault and injures another person or vehicle---- someone at a crosswalk, say, or who's a driver or passenger in another car?

I have read that if a car has a license plate, it by law includes third party liability insurance, and at a huge number of Euros at that. Does this mean we could not be left "holding the bag" if we were at fault and caused damage to someone in another car/not a passenger in our car?

For many years we have been happily relying on our "preferred card" insurance when renting in Europe. Were we unwittingly subjecting ourselves to massive liability? Can we comfortably rely on the above-mentioned U.S.- issued charge cards?

Can ANYBODY supply a link that deals simply and clearly with this query?

THANK YOU SO MUCH!

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