Do people rely on rental vehicle excess coverage on credit cards?

I always use my Westpac Altitude Qantas for rental excess. In September, I scraped the side of the car rented in Pisa from Avis. Allianz paid the damages bill almost immediately minus the $300 deductible however excluded the Loss of Use charge of 84 euro. I am currently in a dispute with Avis as they bumped my location surcharge from 95 euro + 22%Vat to 220 euro + Vat as they informed me after numerous emails:
“The surcharge is applied in the same way as VAT, whereby a percentage (variable dependent upon the location) is applied to the rental costs. Therefore, the initial reservation quote is inclusive of the surcharge amount for the details of the reservation. However, upon addition of extra items at collection of the vehicle ( in this case the damage ) , the associated surcharge amount would increase.” This does not appear anywhere in the terms & conditions.
I highly doubt Allianz will pay up on this.
 

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