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It says "Kevin had less than m dollars left of the $175 that he budgeted for the car rental". Was the insurance expense actually incurred is not mentioned. It seems information about insurance was an additional info. The budget was only there for rental. Please clarify
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Important thing to realise is that m is the amount of dollars LEFT of the 175.
Kevin has LESS than this m dollars left.

Statement 1:
If m=45:
Then he is having less than 45 dollars left.
It means he spent MORE than 130 dollars of the 175.
So 130<x<=175
We can definitely have the car alone to be less than 130 or more than 130.
INSUFFICIENT.

Statement 2:
i=2 clearly doesn't say anything about the amount he spent.
INSUFFICIENT.

Combining the two:
Even when we know i=2 or 2% for the insurance free we see that:
129+0.02*129 > 130.
140+0.02*140 > 130.

In both cases car alone has <130 or >130.
INSUFFICIENT.

Answer: Option E
NextstopISB
Kevin rented a car for a cost of c dollars, and he paid an insurance fee of i percent of the car rental cost. If Kevin had less than m dollars left of the $175 that he budgeted for the car rental, was the cost of the car rental, excluding the insurance fee, greater than $130?

(1) m = 45

(2) i = 2

Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.

Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.

BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.

EACH statement ALONE is sufficient.

Statement (1) and (2) TOGETHER are NOT sufficient.
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