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Car Rental in Italy--incredibly basic question

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I have just arranged to rent a car in Italy, through AutoEurope. There is a deductible of 1000 Euro in case of damage, and 3000 euro in case of theft of the vehicle. The AE person told me that I could buy "super CDW" that would eliminate this deductible; this can be purchased at the rental counter (EuropCar).

Is this something I should buy, or is this an instance when one should decline all insurance? I am using Amex to pay for the car; will they cover me in case of damage or theft?

Thank you for any help.

BTW: As I reported on another thread, the price for the rental on the AE Italian site was LESS THAN HALF of the price on the US site.

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