You must connect the inverters - and + to your 12v source. You can certainly use the frame as that connection.
The chassis ground terminal on the inverter should also be connected to the frame even though the inverter will function without it. It's a safety feature. It will connect the ground pin of the 120v AC outlet on the inverter to the chassis ground.
By the way, how big is a medium size inverter to you? I doubt the extra fuse in your block is rated for more than about 20 or 30 amps. That translates to about a 200 to 300 watt inverter. Any larger than that and you will need to connect it directly to your battery with large cables and large fuses.