Originally Posted by TRAVELSIG
I would rent in Germany- it is FAR cheaper. As per the border- there are no border guards between Germany/Austria/Italy- they are all Schenegen countries. You should be allowed into Italy- if you check the Avis website it will tell you- typically you are permitted into Schenegen countries and also Slovenia (which is becoming Schenegen shortly). Make sure they note on your rental agreement you are traveling into Italy- this will eliminate any problems. As I live in Italy- I would recommend you take the coverage. 29 EUR sounds like a lot per day- but the chance of something happening to your car is not insignificant. I would NOT take a mercedes into the south (below Rome) BTW- too much chance of a hassle. Ensure you leave no valuables in your car- especially if you park near train stations. Dont be alarmed- Italy is wonderful and very safe overall- but a foreign plated car can be a target for a smash and grab. Let me know if you have any questions.
I would be *very surprised* if Avis would have eliminated the restriction on taking high end cars into Italy.
True that prices are typically higher in Italy. However, one never knows, and rates that include insurance, which are common in Italy, might be cheaper than a low rate elsewhere plus extra insurance.