Oct 19 2009 11:44 AM

What is the difference between collision and comprehensive insurance?

Collision insurance covers a vehicle that's involved in an accident with another vehicle. Comprehensive insurance covers a vehicle that is damaged in an event other than an accident, such as a fire, hail, or a falling tree. If you have a car loan, most lenders require that you purchase both collision and comprehensive insurance.

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Laura Adams is a personal finance expert and award-winning author who is Senior Insurance Analyst for InsuranceQuotes.com. She represents Bankrate Insurance’s web properties in the media and works as an advocate to make sure consumers protect their financial futures by having the right kinds of insurance.

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