We always rent cars in Greece and always pay the extra 6/8 euros per day for full damage waver. Tyres and underbody are still excluded but if someone damages the car while its parked for instance you dont get charged. Body repairs in Greece are similar to the UK, i.e. expensive, so for peace of mind we think its worth it.
I hear very often about similar experiences.
I have done this every year since my first trip to Kos in 1988, with no problems. You just show them your passport.
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