There are more options for renting a car than ever before—bricks-and-mortar, peer-to-peer and membership-based car sharing services. While this means more choice for renters, it also creates more questions about insurance coverage. Use these tips to properly insure yourself when renting a car, and avoid wasting money on duplicative coverage.

If you lease a car, you'll still need to purchase your own state-mandated basic auto insurance—and you'll very likely need additional coverages:

Your leasing company will require collision and comprehensive auto coverage

The bank, leasing company or other entity that is financing your leased car has a monetary stake in the vehicle. They’ll want to make sure there are sufficient funds available to repair the car in the case of an accident. For that reason, you'll need to buy:

You cannot legally drive in any state without demonstrating financial responsibility for damages or liability in the event of an accident. In most states auto insurance is mandatory as proof of this responsibility.

All states have financial responsibility laws so, in states where there is no liability insurance requirement, you need to have proof of sufficient assets to pay damages, medical bills and more if you cause an accident.

While different states have different mandates for auto insurance, most basic car policies consist of six types of coverage. Here's what you need to know about each.

Basic personal auto insurance is mandated by most states and provides you with some financial protection in case of an accident. But is it enough? What are the options? Learn how car insurance works and what types of coverage are available.