car insurance offers more protection
car insurance Uninsured and underinsured motorist coverage: This coverage reimburses you if you (or a covered driver) is hit by an uninsured driver or a driver who doesn’t have enough coverage to pay for your total loss. This also protects you if you are a victim of a hit-and-run or you are struck by an uninsured or underinsured motorist as a pedestrian.
Choose a policy that meets your needs
Once you’ve compared rates and coverage limits from a few different insurers, you’ll want to select the policy that—at the very least—meets your state’s minimum requirements. Although Stuart says that if your budget allows, you may want to spend a little extra on additional coverage.
While first-time drivers will likely face a higher premium because they’re new to the road and tend to pose a greater risk to insurers, you can still look for discounts to lower your costs by asking about low-mileage discounts or good student discounts, or bundling your insurance policies.
“Be willing to learn; we have insurance for a reason,” says Stuart. “You can certainly let the agent know that you are price-conscious and want the best deal, but it is even more important that the agent is able to recommend the right coverage for you. The last thing you want is to get the cheapest policy and then find out later you aren’t covered when you need it.”
This story was originally featured on Fortune.com
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In addition to the bare minimum required by the state, rental car insurance offers more protection. Generally, prices range from about $31-$60 per day for rental insurance from popular providers like Budget and Enterprise Rent-A-Car. At Enterprise Rent-A-Car, Loss Damage Waiver costs around $30; liability coverage costs about $15; and personal accident insurance costs roughly $13, bringing the total daily rental car insurance cost to $60.
On the more cost-efficient side, Budget Rent-A-Car charges $9 for loss damage waiver, $15 for liability coverage, and $7 for personal accident insurance, making daily rental car insurance $31. The collision damage waiver covers the cost of repairs for vehicular damages caused by accidents, fire, vandalism, theft, and other similar cases, according to NAIC, the U.S. regulator for insurance commissioners.
Liability insurance covers medical bills and damages to another person’s property. Similarly, personal accident insurance covers the renter’s and passenger’s medical bills, while personal effects coverage covers theft of personal belongings stolen from the rental.