Smart Money Podcast: When Travel Insurance Is Worth It and Buying an Electric Car

Liz Weston, Sean PylesJun 14, 2021

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Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions.

This week’s episode starts with a discussion about travel insurance — what it offers, how much it costs and when you should purchase it.

Then we pivot to this week’s question from Marie. They wrote us asking:

“Dear Nerds,

I am preparing to buy my first new car and I am very excited that it will be electric. This will be the first time that I use a car loan to purchase a car. In the past, I have purchased used cars with cash.

I read on the NerdWallet website that it is advised to be preapproved for a car loan to improve your negotiating position. However, I have seen some car dealerships advertise 0% car loans and I wonder if those are really a good deal or if there is some fine print to look out for in order to really compare the costs to a loan from a bank or credit union. Could I get preapproved, but then also inquire about the 0% after settling on the price?

Also, I am in a unique situation in that I live in California and my finances qualify me for several state and federal financial incentives for purchasing an electric car. How should I handle a negotiation conversation if the dealer tries to factor in those incentives?



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When you buy , what you're really paying for is peace of mind and flexibility. Prices vary, but Squaremouth, a travel insurance comparison site, found that for the 12-month period ending April 2021, a comprehensive travel insurance plan averaged 5.9% of the cost for a domestic trip, and 6.6% of the cost for an international trip. This can cover trip cancellation, lost baggage, medical expenses and more. Costs can vary by age and specific requirements.

If you’re in the market for an electric car, make sure you know the basics of . Getting before going into a dealership can give you leverage during negotiations with a salesperson. And look into state and federal financial incentives that can make your electric vehicle more affordable.

Additionally, versus buying an electric vehicle. Battery technology is developing rapidly, so leasing might be a good option to avoid being stuck with an outdated or degrading battery.

Have a money question? Text or call us at 901-730-6373. Or you can email us at . To hear previous episodes, go to the

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