Wonderful experience.
We chose the full insurance, which diminished the deposit to a minimum of 160 euro (for a small car). We had a nice car, and we managed to drive around the island for 5 days with only 35 euro in fuel cost.
The best thing was that we didn't pay a "one way" fee, because we took the car from Larnaca airport and left it at Paphos Airport. Super nice staff also, and the communication was just right!
And if you're driving for the first time on the left side, I recommend you choose a automatic car.