While different insurance companies may have different rules and guidelines, yes, in general this is correct. While your auto insurance may follow you if you rent a car this coverage normally only extends to your rental cars in the United States and perhaps in some instances in Canada, depending upon your insurance guidelines.

Even with your own vehicle your auto insurance will normally only extend to you and your car while you are driving it in the US or Canada. The US Department of State even notes that in general, your U.S. auto insurance does not cover you abroad and states that a good rule of thumb when renting a car overseas is to purchase insurance coverage that is at least equivalent to that which you carry at home.

Sometimes your credit cards will include auto insurance coverages to rental cars so if you used a credit card to rent the vehicle in Germany you may want to check with your credit card company to see if there are any car insurance coverages that would have covered this rental vehicle and the accident you were found at fault for.

Before traveling our of state and especially out of the country we would advise you check with your insurance provider to find out if your coverages will extend to you and the vehicle you will be using. If they will not, as in this case and your trip to Germany, then you will know if you will need to purchase auto insurance coverage from the rental agency.