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Covers damage to the rental vehicle because of accident, vandalism or if it is stolen. If you have full coverage on your own car you will likely not need this. Liability only coverage alone on your vehicle consider buying or another option.
Many people carry only state minimum liability coverage which in a serious accident may not be enough. If you have an umbrella liability policy with your homeowners or renters it may cover you here as well.
Homeowners and renters policies may cover your personal property if stolen from you vehicle but make sure before you travel.