The answer is you are unlikely to be able to hire without it so yes you need to bring it with you - but if it's essential that someone drives and they have forgotten to bring their licence see our faq: What happens if I forget my driving licence?
You should also check that your driving licence is accepted by the car hire company. Some may not accept a licence without a photocard. In some cases you may be required to have an International Driving Permit (these can be purchased at the Post Office). You can also use the 'Share your licence' scheme which enables hire car companies to see your driving record if required.
Remember in most countries you need to have your licence with you when you drive - unlike the UK where you can produce your licence at a police station at a later date.
Additionally, ensure your rental agreement is also in your possession, as this is both proof that you are entitled to drive the car and that you are insured to drive it.
Reading your car hire terms and conditions is key to making sure you have the necessary documents when you pick up your hire car.
If you have any queries do call a member of the MoneyMaxim car hire insurance team.