You can’t decline CDW insurance in Italy. You can only choose to have or not to have the NO DEDUCTIBLE coverage to cover the 1,000€ deductible, but that option is just a few dollars extra a day.
Go to www.autoeurope.com (a broker/consolidator) and rent from them. I do so every year. This year I have a Jeep Renegade Limited for $956 (for 20 day rental), which is in the Compact SUV/Wagon category. It would have been over $100 less if I had picked it up downtown Rome instead of the airport, but since I was going to the Tuscan coast I didn’t want to bother to get a taxi to the city center.
The rental is with Hertz and is inclusive of everything, including NO DEDUCTIBLE insurance option. But on AutoEurope they have deals also with Europcar, or Avis, or Budget, etc. just choose the one that is best for you.
It is unlikely that you will spend over $60 a day, all inclusive, unless you rent a van or a luxury car. In September it should be even cheaper than now in July. I just tested on www.autoeurope.com two random weeks in September for a compact SUV like a Jeep Renegade in Rome and the price with NO DEDUCTIBLE insurance option is under $700 for the whole two weeks, no matter if one chooses Hertz, or Europcar, or Budget.
