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CNBC
3 days ago
- Health
- CNBC
Why travel insurance is a must for seniors
Travel insurance can be a huge help to anyone, especially older travelers who may have a greater risk of health issues or unexpected travel disruptions and greater concerns about protecting their finances. CNBC Select explores why travel insurance is so important for seniors and the policies to consider if you're over 65. Whether you have private insurance or Medicare, your U.S. health care plan probably isn't valid abroad. That's where your travel insurance policy's medical coverage is invaluable. It will cover the cost of doctor's visits, hospital stays, prescriptions and more. If you need to be flown somewhere for treatment or get back home, a good policy will also cover the cost of medical evacuation. We recommend buying a policy with at least $100,000 in emergency medical coverage and $250,0000 in evacuation coverage. If you're visiting far-flung locales or are particularly concerned about your health, however, look at policies with higher limits. Travel Insured International has some of the highest limits we've seen. Plans cover up to $250,000 in emergency medical expenses and $1 million for evacuation or repatriation. Single-trip and multi-trip/annual policies and cruise insurance. Add-ons include Cancel for Any Reason coverage and a travel inconvenience benefit Add-on to Worldwide Trip Protector Deluxe or Platinum plan that reimburses 75% of nonrefundable costs when purchased within 21 days of initial trip payment Available if policy is purchased within 21 days of initial trip deposit. A standard travel insurance policy won't cover pre-existing conditions if they force you to change your plans or seek medical treatment. A pre-existing condition is any injury, illness or chronic condition that requires treatment or medication, including diabetes, arthritis, cardiac disease or COPD. If you file a claim, your provider will typically look back 60 to 180 days before you enrolled to see if there were any changes in your medical status. You can get a pre-existing condition waiver, however, which prevents your insurer from reviewing your records when processing a claim. Many companies offer waivers but require travelers to be medically able to travel and to buy their policy within two weeks of booking. We like Nationwide for its more generous 21-day window in which you can buy coverage and still receive a waiver. Single- and multi-trip plans and cruise insurance, plus add-ons like CFAR and rental car coverage. Add-on to Prime plan that reimburses 75% of nonrefundable trip costs if purchased within 21 days of booking (Not available in New York or Washington state) Available with single-trip plan purchased within 20 days of initial trip deposit (14 days for cruise insurance) Even if you don't have a medical issue on your trip, you might have to cancel your plans because of a health condition, death in the family or other emergency. Trip cancellation and interruption coverage are among the best reasons to get travel insurance. A comprehensive plan will reimburse up to 100% of your nonrefundable costs if you need to cancel and up to 150% if you need to cut your trip your policy's terms to see what events are covered, but common scenarios include: If you're concerned about your situation being covered or don't want to have to submit proof, a Cancel For Any Reason (CFAR) policy will refund a portion of your expenses, regardless of why you scraped your plans. Most CFAR plans limit you to 50% to 75% of your nonrefundable costs, but Allianz reimburses 80% of expenses. Single-trip and multi-trip/annual policies and a rental car plan. OneTrip Prime and Premier plans include coverage for one child 17 or younger when accompanying a covered adult. Reimburses 80% of nonrefundable trip costs if you cancel at least 48 hours before departure. Included if policy is purchased within 14 days of initial deposit Read our review of Allianz Travel Insurance Cruises are particularly popular with retirees, who enjoy the convenience, entertainment and relaxing atmosphere, and have the funds and free time to devote to an extended excursion. Viking, Holland America and Cunard all market cruises aimed at older come with specific risks, though, including the ship breaking down or you missing your connection. We love Seven Corners' cruise insurance policies, which include up to $250 a day for missed connections, $5,000 for an itinerary change and $250 each time the ship is disabled or misses a port of call. Plus, Seven Corners gives you 20 days to buy a policy with a pre-existing condition waiver and covers travelers up to age 99. The best way to estimate your costs is to request a quote Policies provide missed and delayed tour/cruise connection coverage. Cancel for any reason coverage and pre-existing conditions waiver are also available if you buy your plan within the specified time. ***CFAR and IFAR are subject to certain eligibility criteria and are not available in all states Yes Many travel insurance companies put age restrictions on their policies, limiting coverage to travelers under 79 or even 65. The cost of a policy can also be much more expensive for older travelers. Seven Corners will approve coverage for travelers up to age 99 and Faye and Travelex don't have any age restrictions at all. One single-trip plan with optional add-ons for pet care, adventure sports and damage to vacation rentals Up to 75% reimbursement of nonrefundable trip costs if purchased within 14 days of initial trip deposit. Available if policy is purchased within 14 days of initial trip deposit. Essential, Advantage and Ultimate policies plus last-minute Travel Med Go plan and standalone plans for emergency medical and flight coverage. Upgrades include rental car, pet and adventure activities coverage Upgrade with Ultimate plan covering 75% of nonrefundable trip costs if purchased within 21 days of initial deposit and 31 days of departure. Included with Ultimate plan if purchased within 21 days of initial deposit Travel insurance averages between 4% and 10% of your total nonrefundable trip expenses. Because of increased risk, seniors pay on the higher end of that range. CNBC Select gathered rate quotes for a 65-year-old traveler and a 30-year-old traveler taking the same one-week $3,000 excursion to London and looking for $250,000 in medical coverage and $1 million in evacuation coverage. While the 30-year-old's rate was about 4.4% of their nonrefundable trip expenses, the 65-year-old was quoted a rate of about 7.3%. There can be a significant difference in price among carriers, so using a travel insurance marketplace like Squaremouth can help you compare rates in minutes. SquareMouth is a travel insurance marketplace that allows you can compare top-rated providers, including Berkshire Hathaway, Nationwide, Seven Corners and Tin Leg. Yes Read our SquareMouth travel insurance review The best policy for any traveler depends on your specific needs, the length and location of your excursion and other factors. Our top picks for travel insurance for seniors includes Travel Insured International, Nationwide, Seven Corners, Allianz and Faye. Some companies allow you to buy a policy up until a day or two before your departure, although enrolling within two weeks of booking ensures you have access to a pre-existing condition waiver and other benefits. Travel insurance typically costs between 4% and 10% of your nonrefundable trip expenses. For seniors, a policy will more likely be on the higher end of that range. We found coverage for a 65-year-old on a one-week vacation in London was 7.3% of the total expense. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every travel insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of travel insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
CNBC
6 days ago
- Business
- CNBC
What happens when my 0% APR period ends?
A 0% APR credit card can be a helpful financial tool when you need to finance a large purchase or consolidate outstanding credit card balances. You can get up to 24 months of zero interest, making it easier to make payments over a longer period without going into debt. But these types of credit cards are really only best utilized when you have a payment plan in place so that when the introductory 0% APR period ends, you're not then collecting interest on a large balance. Here's more on what happens when your interest-free period ends, plus how to manage a possible ongoing balance when that happens. Whether you're using a 0% APR card that offers an interest-free period on new purchases, balance transfers or both, that grace period doesn't last forever. Some credit cards offer introductory 0% APR periods for as little as 12 months while some offer periods for as long as two years. If you're looking for a card with a shorter 0% APR window, the Wells Fargo Active Cash® Card offers an intro APR for 12 months on purchases and qualifying balance transfers (after, 19.24%, 24.24% or 29.24% variable APR) and earns unlimited 2% cash rewards on purchases, plus the card has a $0 annual fee. On Wells Fargo's site On Wells Fargo's site Good to Excellent670–850 19.24%, 24.24%, or 29.24% Variable APR $0 Earn a $200 cash rewards bonus See rates and fees. Terms apply. The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual balance transfer fee of 3% for 120 days from account opening, then up to 5%, min: $5 3% If you'd prefer one that gives you a bit more time, the U.S. Bank Shield™ Visa® Card has an intro 0% APR on purchases and eligible balance transfers that's double the length, lasting 24 billing cycles (after, 17.74% to 28.74% variable APR). The card comes with 4% cash back on prepaid air, hotel and car reservations booked directly in the Rewards Center and a $20 annual statement credit for 11 consecutive months of purchases. Personal and small business credit cards issued by U.S. Bank are currently not available on CNBC Select. Click "Learn More" to review other credit card offers. Personal and small business credit cards issued by U.S. Bank are currently not available on CNBC Select. Click "Learn More" to review other credit card offers. U.S. Bank cards are currently not available on CNBC Select but you can check out our marketplace to compare offers from other issuers including American Express and Chase. Good to Excellent670–850 See terms See terms See terms *See rates and fees, terms apply. Information about personal and small business credit cards issued by U.S. Bank has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication. Regardless of the time frame, once your APR period ends, you'll begin accruing interest on any unpaid balance at the rate listed on your card's agreement terms. (You can often find this rate via your online account or contact your issuer directly.) This is why we always suggest having a specific plan in place to pay off your balance by the time the 0% APR period ends. One example is dividing how much you owe over the number of months in the APR period, so you know how much to pay each month to get to zero before interest kicks in. Otherwise, you'll be stuck with a ballooning balance now due that's going to start collecting double-digit interest. And don't forget that even with a 0% APR card, you still have to make monthly minimum payments at the very least. An issuer can end the interest-free period if you miss a credit card payment. So, you weren't able to tackle the entire balance by the time your 0% APR period ended; now what? While this seems like the obvious answer, with how high credit card interest rates can be, this type of debt should almost always be your priority. This is sometimes referred to as the avalanche method, which entails paying off the debt that has the highest APR first. If you're at a point where you're considering outside help, exploring some debt relief companies can at least provide you with some more information. These companies negotiate with your creditors to help get your balance lowered, but the negotiation can come with some hoops you have to jump through, and success isn't always guaranteed. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent Debt Relief has resolved over $19 billion in outstanding debts since 2002. It offers free credit card debt relief in 2011, Accredited Debt Relief has helped clients resolve over $1 billion in debt. While you can request an extension via your financial institution, it's unlikely that this would be approved, but there are some credit card fees you might be able to waive. Yes, it's generally recommended to keep the credit card open to help boost your available credit and credit history, with an exception being for high-annual-fee cards that you don't intend to use. The length of your exact 0% APR period is determined by the card you're approved for, but six to 24 months, or billing cycles, is a common range. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
CNBC
7 days ago
- Business
- CNBC
3 popular credit card benefits for active military personnel
If you're an active service member, you're entitled to some financial protections. This is thanks to the Servicemembers Civil Relief Act (SCRA) and the Military Lending Act (MLA), both of which address the consumer debt that military members and their families may carry. These laws provide financial safeguarding like interest rate caps, protections against mortgage foreclosures and from eviction, ability to terminate leases, no loan prepayment penalties and credit card relief. Below, CNBC Select dives deeper into active-duty military members' financial protections when it comes to their credit cards. One of the most valuable benefits is the cap on interest rates for many different types of loans, including credit cards. The interest rate on debt covered by the SCRA is capped at 6%, while the rate on interest and fees under the MLA is capped at 36% in order to protect service members from predatory lending practices. Some issuers openly offer waived fees on credit card accounts for active military personnel, and others may still offer them, you just have to ask. Being able to waive an annual fee of potentially hundreds of dollars, or even avoiding a late payment charge, can add up both in the moment and over time. All the available card benefits stay the same, so you can get premium credit card perks for no annual fees. Often, the perks that the active service member receives will also be available to their spouse. Sometimes this will be due to the letter of the law, other times as a courtesy extended by a financial institution. Many banks will have special phone lines or email addresses for questions military members might have about benefits so reach out and ask. Some issuers offer additional benefits that go above and beyond those required by law. With Capital One, customers eligible for the SCRA will receive an interest rate cap of 4% and no annual fees or other fees on their Capital One credit card accounts. These benefits apply to the spouses/dependents of eligible service members and that coverage extends for one year after the end of their active-duty service. Chase offers SCRA benefits, including waived fees on all Chase credit cards and 4% APR on eligible balances during active duty and one year afterward. Other issuers have indicated that they provide relief that meets or exceeds the requirements. Since each issuer may handle military benefits differently, it's always best to reach out directly with any questions or if you're looking for specific details. If you're eligible for any of these active military benefits, it's worth reaching out to your bank to see how you could save. Taking advantage of the interest rate cap you have on credit card debt can save you a large amount of money, especially if you qualify for the 6% interest rate cap. If you're paying $250 a month on $5,000 in credit card debt with 25% interest, it will still take you over two years and more than $1,500 in interest payments to pay it off. With a 6% interest rate cap, those same $250 monthly payments eliminate your debt in under two years with just under $300 worth of interest payments, saving you over $1,200. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent Debt Relief has resolved over $19 billion in outstanding debts since 2002. It offers free credit card debt relief in 2011, Accredited Debt Relief has helped clients resolve over $1 billion in debt. With many credit card issuers waiving fees for active military service members, this can lead to some pretty great value from the higher-tier cards. With Chase waiving their fees on all its cards, you could get the Chase Sapphire Reserve® (see rates and fees) without its typical $550 annual fee, giving you access to a $300 annual travel credit, entry into over 1,300 airport lounges and more. On Chase's site On Chase's site Points are worth 50% more when you redeem them for travel booked through Chase Travel℠. Excellent740–850 20.24% - 28.74% variable $550 Earn 60,000 bonus points See rates and fees. Terms apply. Member FDIC. Read our Chase Sapphire Reserve® review. The Chase Sapphire Reserve® is a standout premium credit card with plenty of luxury perks and statement credits to justify its annual fee. Either $5 or 5% of the amount of each balance transfer, whichever is greater Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.$0With over 4,700 branches, Chase has the largest branch network in the U.S. plus access to more than 15,000 ATMs. JPMorgan Chase Bank, N.A. Member FDIC Terms apply.$0Bank from anywhere with access to more than 15,000 Chase ATMs, more than 4,700 Chase branches, the Chase Mobile® app and JPMorgan Chase Bank, N.A. Member FDIC Terms apply. One aspect of some of these military benefits that can get overlooked is whether they apply to spouses or dependents, as this can be a nice addition. With Capital One extending its credit card benefits to the spouses and dependents of service members, they could also qualify for a premium travel card like the Capital One Venture X Rewards Credit Card without paying the $395 annual fee. The card offers a $120 statement credit for either Global Entry or TSA PreCheck® and a 10,000-mile bonus on each account anniversary. You can add up to four authorized users to your account no fee and they can each receive their own Priority Pass airport lounge membership (enrollment required). Excellent740–850 19.99% - 29.24% variable APR $395 Earn 75,000 bonus miles Terms apply. Read our Capital One Venture X Rewards Credit Card review. The Capital One Venture X Rewards Credit Card is a premium credit card with a myriad of benefits and a lower annual fee than other high-end cards with similar features.$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you $0 In addition to the perks required by law, some issuers will also provide additional benefits to active military members such as waived fees or reduced interest periods. Chase and Capital One are two banks that waive certain credit card fees for active military members. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
CNBC
05-05-2025
- Business
- CNBC
4 of the best business credit cards for new businesses
If you're a new business owner who needs financing, you may have already realized that getting a new line of credit is easier said than done. You may not be able to qualify for some of the fancy business credit cards with flashy perks (yet), but you can work up to those by starting with a credit card that's easier to get approved for and makes more sense for a new business owner. CNBC Select reviewed dozens of options to determine which credit cards were best for new businesses (See our methodology for more information.) Information has been collected independently by CNBC Select Information has been collected independently by CNBC Select Limited to FairNone–670 29.74% variable $0 None Terms apply. Information about the Capital One Spark Classic has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication. The Capital One Spark 1% Classic is a good fit for business owners who want to build their credit because it's available if you have fair credit and there's no annual fee. Who's this for? The Capital One Spark 1% Classic considers fair or average credit scores or better, making it ideal for those with less-than-ideal credit. Standout benefits: This card offers unlimited 1% cash back on all purchases, so you'll earn rewards on all of your business spending. Considering the comparatively low credit score needed to qualify for this card, that's a nice perk. [ Jump to more details ] Unlimited 1% cash back on all purchases None $0 0% on purchases and balance transfers for first six billing cycles, variable APR thereafter 16.20% to 27.75% variable APR 4% of the amount of each balance transfer or $5, whichever is greater 2% Poor/No credit history Terms apply. Who's this for? The Valley Visa® Secured Business Credit Card is another solid option if you're just starting out and need to build your business credit. It's a secured credit card, which means your credit limit more or less matches the deposit you make on the card. In this case, you need to deposit 110% of your credit limit (up to $25,000). So if you want a $10,000 credit limit, you'll make a $11,000 deposit. Standout benefits: The card also offers a six-month introductory APR offer and provides an unlimited 1% cash back on all purchases. [ Jump to more details ] On Chase's site On Chase's site Good to Excellent670–850 17.49% - 25.49% variable $0 Earn $350 when you spend $3,000 on purchases See rates and fees. Terms apply. The Ink Business Cash® Credit Card is a no-annual-fee cash-back business card that's especially rewarding at office supply stores and gas $5 or 5% of the amount of each transfer, whichever is greater 3% of each transaction in U.S. dollars Who's this for? The Ink Business Cash® Credit Card offers an attractive cash-back welcome bonus offer for new cardholders: you'll earn $350 in cash back when you spend $3,000 in the first three months from account opening. You can also earn an additional $400 if you spend $6,000 in the first six months after account opening. Standout benefits: The card offers a competitive cash-back program that allows you to earn 5% cash back on the first $25,000 in combined spending for internet, cable, office supplies and phone service for your business each account anniversary year. [ Jump to more details ] Personal and small business credit cards issued by U.S. Bank are currently not available on CNBC Select. Click "Learn More" to review other credit card offers. Personal and small business credit cards issued by U.S. Bank are currently not available on CNBC Select. Click "Learn More" to review other credit card offers. Personal and small business credit cards issued by U.S. Bank are currently not available on CNBC Select but you can check out our marketplace to compare offers from other issuers including American Express and Chase.N/A See terms See terms See terms *See rates and fees, terms apply. Information about personal and small business credit cards issued by U.S. Bank has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication. Who's this for? If you're looking to save money on interest by making a balance transfer, the U.S. Bank Business Platinum Card has a competitive introductory offer. Even if you don't need to make a balance transfer, you can still capitalize on this by using the card to pay for any large business expenses you have coming up (and paying it all off before the introductory period ends and interest kicks in). Standout benefits: The card does come with a balance transfer fee of 3% of the amount being transferred ($5 minimum), which is low compared to other balance-transfer cards. [ Jump to more details ] The Capital One Spark 1% Classic is a solid card for businesses that are just getting started since the low credit requirements may allow for easier approval. Once you get the card and practice good credit habits, like paying off your bill on time and in full each month, you'll build your credit score and will be able to upgrade to a card with more perks. Rewards Welcome bonus None Annual fee $0 Notable perks This card doesn't charge foreign transaction fees. You can also request employee cards for free. [ Return to card summary ] This is a secured card that also gives you an intro APR period on purchases, so you can save on interest charges upon first opening the card. If you have a big business purchase to make, it's most advantageous to do it during your intro offer so you can make interest-free payments until the balance is paid off. Just keep in mind that your credit limit is determined by your deposit — so if you can't make a big cash deposit, then you won't be able to charge an expensive purchase to the card. Rewards Welcome bonus None Annual fee $0 Notable perks This card has an introductory APR period and comes with a balance transfer fee of 4% of the amount you transfer with a $5 minimum. [ Return to card summary ] Cash back from the Ink Business Cash® Credit Card can be used to offset the cost of your credit card bill or to be redeemed for gift cards and travel. If you're redeeming cash back for travel, it should be done through Chase Ultimate Rewards®. Rewards Welcome bonus Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening Annual fee $0 Notable perks This card has an intro APR period on purchases, a 3% foreign transaction fee and a balance transfer fee of $5 or 5% of the transfer amount, whichever is greater. [ Return to card summary ] The U.S. Bank Business Platinum card is a fairly bare-bones credit option, but it can help get your business out of a tricky spot thanks to its strong balance transfer offer. Another plus? It doesn't come with an annual fee. Rewards None Welcome bonus None Annual fee $0 Notable perks The intro balance transfer fee is 3% of the amount of each transfer ($5 minimum) but the transfer needs to be made within 60 days of account opening to capitalize on the low fee. Otherwise, it increases to 5% of each transfer ($5 minimum) after those 60 days. [ Return to card summary ] Many business credit card applications actually require you to apply with your Employer Identification Number (EIN) so it's a good idea to make sure you have this before you submit any applications for a business credit card. The easiest business credit card to get will have relatively low credit score requirements (perhaps even fair or average credit at a minimum) and no annual fee. Cards without a ton of perks and frills are also sometimes easier to get compared to ones with a welcome bonus and a ton of special rewards. Secured business credit cards are also a solid option for people who are just starting out. Most credit card issuers typically look for a FICO score of 670 or better (in other words, credit scores in the "good" range or better). However, some issuers may also accept fair credit (580–669). Generally, though, the higher your credit score the more likely you are to receive a lower interest rate on your credit card. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of small business and credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best business credit cards. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. To determine the best business credit cards for new businesses, CNBC Select analyzed several business credit card options. We compared each card on a range of features, including credit score requirements, secured card offers, rewards (e.g., cash back, points and miles), annual fees, welcome bonuses, introductory and standard APR and balance transfer fees and foreign transaction fees. We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
CNBC
29-04-2025
- Automotive
- CNBC
Ask yourself these 6 questions to see how much car insurance you need
Every driver needs car insurance, but not everyone needs the same type or amount of coverage. The policy that's right for you depends on many factors, including the age of your car, how you paid for it, and where you live. Take CNBC Select's six-question quiz to see how much car insurance you really need. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent auto coverage is available in all 50 states and the District of Columbia. It offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown offers an array of riders, including rental car reimbursement, rideshare insurance and a Deductible Savings Bank that deducts $50 from your deductible each policy period you go without a claim. All U.S. states except New Hampshire require drivers to have some level of liability car insurance to pay for damage or injuries to others. The amount of bodily injury and property liability coverage, however, is different from state to state. The 12 states with no-fault insurance laws also require drivers to get personal injury protection (PIP) or medical payment (MedPay), which cover medical expenses for you or your passengers after an accident, regardless of who is found to be at fault. Twenty-two states and Washington, D.C., require drivers to have uninsured/underinsured motorist (UM/UIM) coverage, which protects you financially if you're in a collision with someone who doesn't have enough insurance or no insurance at all. Collision coverage pays to repair or replace your car if it hits another car or object, regardless of who is at fault. Comprehensive coverage covers non-collision events, like theft, vandalism, hail, failing tree branches and fire. While comprehensive and collision coverage aren't mandated by law, most lenders require borrowers to have them if they're still making payments on a loan or lease. If your car is totaled or stolen, a standard insurance policy will only reimburse you for the actual cash value of the vehicle, which takes depreciation into account. (New cars can lose as much as 20% of their value in their first year.) If you're still paying off your car, especially if you made a small down payment, gap insurance can cover the difference between the vehicle's value and the amount you still owe on it. According to the Insurance Information Institute, gap insurance is a good idea if you: Adding gap insurance only increases full coverage premiums by about $20 to $60 a year, according to the III. Your dealership may offer gap insurance, but it's usually cheaper through an insurance company. Travelers is known for its affordable rates and offers discounts if your car is no more than three model years old. The best way to estimate your costs is to request a quote Yes Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts. Nationwide allows drivers to purchase gap coverage on cars that are up to six years old. The best way to estimate your costs is to request a quote Yes Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you. Terms apply. If you're leasing, check your lease agreement before adding gap insurance: It may already be included in the lease price. If you own your car outright, you don't need gap insurance. Full coverage is a good idea for most car owners and is usually required if you have a loan or lease. But if you own your car outright and it's only worth a few thousand dollars, a full coverage policy might be overkill. The rule of thumb is to drop collision and comprehensive coverage if your car is worth less than 10 times your annual premiums. If, for example, you have a car worth $5,000 and your comprehensive and collision coverage costs more than $500 for the year, it may not be worth keeping comprehensive and collision coverage. You can check the value of your car with Kelley Blue Book, the industry standard for pricing. Your net worth is the sum of all of your assets minus all your debts. Determining this amount will give you a good indicator of how much liability coverage you need. The minimum insurance requirement in many states may not be enough to cover all the expenses you could accrue after an accident: In Connecticut, for example, drivers need $25,000 in bodily injury liability per person and $50,000 total per accident, as well as $25,000 property damage per accident. Let's say you're held liable for a crash that seriously injures four people and totals their $50,000 SUV. If their medical expenses are $20,000 per person, you've already exceeded your $50,000 per accident limit for bodily injury liability by $30,000 and your property damage limit by $25,000. You could be sued for the balance, as well as pain and suffering, and would have to pay for it out of pocket. Depending on where you live, that could involve emptying your bank account, liquidating your investments and even selling your car or house. But having adequate liability coverage protects your assets. If your net worth is higher than the limits your car insurance company offers, umbrella insurance can cover you for liability claims up to millions of dollars. One of our top picks for umbrella insurance is American Family Insurance, which has coverage of up to $5 million. The best way to estimate your costs is to request a quote Undisclosed Yes American Family has a wide variety of umbrella policies available, including personal coverage, commercial coverage and coverage for ranches and farms. It's also highly rated for auto and home insurance. In some cases, insurers may try to upsell you on coverage you don't need, like roadside assistance or protection for mechanical breakdowns. Many credit cards offer roadside assistance, including the Chase Sapphire Reserve® (see rates and fees), Chase Freedom Unlimited® (see rates and fees) and Capital One Platinum Secured Credit Card. On Chase's site On Chase's site New cardholders receive a 0% intro APR for 15 months from account opening on purchases and balance transfers. Good to Excellent670–850 18.99% - 28.49% variable $0 Earn $250 cash back See rates and fees. Terms apply. Member FDIC. Read our Chase Freedom Unlimited® review. The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater. 3% of each transaction in U.S. dollars If your card does, buying it from your insurer is redundant. (If you have AAA or belong to another motor club, you also probably already have access to roadside assistance.) Mechanical breakdown insurance (MBI) acts like an extended warranty, paying for unexpected engine issues, transmission failures and faulty electrical systems. An MBI add-on to a full coverage policy averages between $30 and $100 a year. These policies have strict requirements regarding the age, mileage and condition of covered vehicles. They don't generally cover routine maintenance, normal wear-and-tear or cosmetic repairs. And if your car is still under warranty, it covers much of the same territory. This number breaks down the amount of bodily injury coverage a policy has per person, per accident and the amount of property damage it covers per accident. A 100/300/100 covers up to $100,000 of bodily injury coverage per person at up to $300,000 per accident, and up to $100,000 of property damage per accident. A good liability limit for car insurance is one that meets your net worth, which is the sum of all of your assets minus any debts you owe. Full coverage car insurance is a package that includes liability, comprehensive and collision car insurance. While it is more expensive than just getting liability coverage on its own, getting all three coverages is often required by loans and lease terms. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
