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Aruba Rental Car

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We will be stopping in Aruba for one day on a cruise. This will be our third one-day visit, but the first for a couple of our traveling companions. A friend told us that they rented a car for the day to drive around the island, rather than taking a "tour." An article I found on the internet indicated that if you have an accident, even if you have purchased the collision insurance, you are liable for the first $300-$500 worth of damage. Does anyone know if this is true? Would renting a car for the day be easier/cheaper than a half-day tour? Thanks for any help.

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