A Collision Damage Waiver (CDW) is an optional service sold by rental car companies to cover you in case of an accident or damage to your rental car. The collision damage waiver covers only the rented vehicle and means that the rental company waives its right to pursue you for damage. Your rental car company may call it a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), and may also be referred to as Collision Damage Waiver insurance or Loss Damage Waiver insurance.

Key Things to Know About Collision Damage Waivers

• A CDW covers damage to the rental car, but not to other people’s property.
• Collision damage waivers for economy vehicles typically cost $10 – $30 per day.
• Damage waivers do not cover theft or risky behaviors that result in damage, such as drunk driving.
• Personal auto insurance and credit card benefits serve as alternatives to collision damage waivers.

Usage-based insurance is a type of car insurance that bases the cost of a policy on how safe a driver’s habits are. Data is collected by the driver’s vehicle and analyzed by the insurer, which then uses it to determine how much of a discount the driver is eligible to receive. The better the driver, the better the discount. Some companies even offer a discount just for signing up for their usage-based programs.

Usage-based car insurance is best for those who don’t drive often or only drive safely. It might not be worth it for those who don’t practice good driving habits or aren’t comfortable being tracked.

Auto insurance scores are ratings based on information from credit reports that insurers use to estimate how likely drivers are to file a claim. Insurance scores have different ranges depending on the scoring company, but lower scores always mean that drivers are riskier to insure and will likely pay a higher premium.

Key Things to Know About Auto Insurance Scores

• Auto insurance scores are based on your credit history, not your driving history.
• Scores correlate with a driver’s likelihood of costing the insurer money down the road.
• Insurance scores usually come from Fair Isaac Corporation (FICO), LexisNexis, and TransUnion.
• A good insurance score is roughly 700 or higher, though it differs by company.
• You can improve your auto insurance score by checking your credit reports for errors, managing credit responsibly, and building a long credit history.

An at-fault accident is a car accident caused by a driver being negligent or careless. In most states, the at-fault driver’s car insurance reimburses the other drivers for any injuries or property damage they sustained, up to the limits of the policy. It’s also possible for multiple drivers to be at fault in an accident, in which case the state’s negligence laws will determine each driver’s financial liability.

Key Things to Know About At-Fault Accidents

• Your liability insurance will cover medical and vehicle-repair expenses for other drivers and their passengers if you are at fault in an accident.
• Insurance adjusters determine fault after an accident.
• State rules for negligence and fault determine how damages are collected.
• Car insurance premiums go up by an average of 48% after an at-fault accident.

EDITOR’S RATING

4.5 / 5

PROS

• Low income requirement: $25,000
• APRs as low as 6.99%
• Loans as high as $35,000
• Get funded within 7 business days
• High customer satisfaction
• No interest if repaid in 30 days

CONS

• Not available without an SSN
• $39 late fee
• APRs as high as 24.99%
• No co-signers allowed

Discover Personal Loans Review Summary

Discover personal loans are great for people who have a credit score of 660 or higher and want to borrow up to $35,000 at a time. Discover loans are especially good if you want a long repayment period, as Discover’s payoff timelines start at 36 months and go as long as 84 months. Plus, Discover’s personal loan APRs can be as low as 6.99%, which makes them useful for people who want to consolidate existing debt at a low cost.

EDITOR’S RATING

2.5 / 5

PROS

• Accepts people with bad credit
• Approval/funding in 1 - 3 business days
• No prepayment fees

CONS

• Very high APRs: 36% - 65%
• $10 - $15 late fee
• Only available in 14 states
• SSN required

NetCredit Review Summary

NetCredit offers small personal loans of $1,000 to $10,000 for people of all credit levels, even those with bad credit. NetCredit’s personal loans have a very high APR, ranging from 36% to 65%, and need to be repaid within 6 to 60 months.

EDITOR’S RATING

3.4 / 5

PROS

• APRs as low as 6.18%
• Loans as high as $30,000
• No prepayment fees
• High customer satisfaction
• Low credit score requirement: 620

CONS

• APRs as high as 35.99%
• 0% - 8% origination fee
• Late fee: greater of 5% of payment or $15
• Can take up to 14 business days to get approved

Upstart Review Summary

Upstart loans are best for people with good or excellent credit because they offer APRs as low as 6.18% to the most creditworthy customers. Borrowers can also take out loans of up to $50,000, which is great for debt consolidation, home renovations and more.

EDITOR’S RATING

3.2 / 5

PROS

• Long list of discounts.
• Claims satisfaction guarantee.
• Nationwide availability.
• Rideshare coverage is available.
• Pay-per-mile insurance option.

CONS

• Below-average customer service.
• Complaints about premium increases.
• Complaints about the claims process.

Allstate is a pretty good insurance company, earning a rating of 3.2/5 from WalletHub editors, good customer reviews, and above-average ratings from organizations such as the Better Business Bureau (BBB) and J.D. Power. Allstate is perhaps best known for its auto insurance policies, but the company also offers coverage for your home, business, special events and more.

The cheapest car insurance policies for first-time drivers can be as much as 136% cheaper than the most expensive options, depending on the state, so it is very important to shop around. Overall, the cheapest car insurance companies for first-time drivers are Travelers, Grange, and Mercury, according to WalletHub’s analysis.

Cheapest Car Insurance Companies for First-Time Drivers

• Travelers
• Grange
• Mercury
• Progressive
• State Farm
• Safeco
• Liberty Mutual
• The Hartford
• Kemper

New drivers usually pay more for car insurance than mature drivers with more experience, but it’s still possible to get a good deal on your coverage. The key to finding the cheapest car insurance for first-time drivers is to compare quotes from multiple companies.

The cheapest liability car insurance is from Geico, AAA, and USAA. Liability-only car insurance is coverage that only pays for damage that you cause to other people and their property in a car accident, and it is the minimum amount of car insurance required in most states. A liability-only car insurance policy is cheaper than full coverage, which also covers damage to your vehicle.

Cheapest Liability Car Insurance Companies

• Geico: Cheapest for Good Drivers
• USAA: Cheapest for Drivers with One Speeding Ticket
• Mercury: Cheapest for Drivers with a DUI
• AAA: Cheapest for Drivers with One At-Fault Accident
• Travelers: Cheapest for Teen Drivers
• Geico: Cheapest for Older Drivers

Liability-only insurance costs an average of $609 per year from the cheapest companies. To help drivers find the cheapest liability insurance for their needs, WalletHub analyzed quotes from 17 major car insurance companies.