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Warks,So two completely different answers but both equally useful!
I just bit the bullet and rang them and ended up getting the girl who sent your email.
I have sent her my query and she will get back to me when their servers are up again. The short answer though was it has to do with the proximity of Seattle to the Canadian border and the cost of car hire in each country. To allow a cross into Canada they would have to substantially raise their prices to where 'Dollar' etc are. They believe that they are better situated in the market at the lower price and restricting the border crossings by limiting insurance. It is allowed from further away as the extra distance and consequential hire time compensates them adequately.