Comprehensive vs. Collision
The best way to understand the difference between collision and comprehensive coverage is to think about what the car was doing when the damage occurred. If the car was moving and hit another car, collision coverage will be used to make the claim. However, if the vehicle was parked, comprehensive coverage will be used to make the claim.
Collision coverage is viewed as necessary for most drivers, but it is technically optional. This is also true for comprehensive auto insurance coverage. In general terms, the more your car is worth, the more car insurance coverage you will want in order to protect your asset. If you aren’t averse to risk, and you have an older vehicle, you can choose to forgo both comprehensive and collision coverage in Ontario.
If you do this, you will save money in the short term, but there are still risks. You can drive legally as long as you still possess the mandated forms of coverage. However, you will be responsible for most of the costs if your vehicle is damaged while parked if you avoid getting comprehensive insurance coverage. Similarly, if your vehicle is involved in a collision with another vehicle, you will be responsible for the total costs if you don’t have collision coverage.
What does collision insurance cover?
Collision insurance covers the losses that are associated with vehicle rollovers or collisions with other objects while in motion. It is also important to understand what types of items are not included in collision coverage. If a tree falls and hits your car, you won’t be able to file a claim for damage if you only have collision coverage, for example. Although it’s true that the tree did collide with your car, these terms mean something specific when they are used in the context of car insurance jargon. Collision auto insurance only refers to collisions between vehicles and some other events.
To illustrate, here is a short list of situations covered by collision coverage:
- Collisions between your vehicle and another vehicle while your vehicle is in motion
- A collision where another vehicle hits your vehicle
- Hit-and-run collisions where a police report is filed also qualify under collision coverage
- Collisions with stationary objects qualify under collision coverage. Examples include a collision with a road sign, lamp post, embankments and other objects
Collision insurance also includes coverage for hitting a pothole, which many would associate with comprehensive insurance coverage. This is a perfect example of why it is so necessary to speak with your insurance broker directly about the extent and scope of your car insurance policy.
Collision insurance for car accidents
Accidents happen. That’s why insurance exists! If a collision happens and you don’t have insurance, you can be held responsible for the entire amount of the damage. Many drivers don’t know that the name of the type of coverage that will go into effect in this situation is called collision coverage.
Some drivers who obtain comprehensive coverage may assume that this will cover their vehicle in the event of a collision. However, the terms of the policy are clear, and these are two completely different types of coverage. If you are confused about the terminology, just ask your insurance broker to explain it to you clearly. Making informed decisions is critical when it comes to vehicle insurance in Canada.
If my friend borrows my car, does comprehensive coverage still apply?
When you lend your car, you lend your insurance. This means that your vehicle is protected if you lend it to a friend. However, if an accident occurs while your friend is driving your vehicle, you will be responsible for any increases to the premium that may occur as a result of the accident. To be on the safe side, talk to your broker before lending your car. Only lend your car to people you trust, and make sure everyone fully understands the risks and responsibilities involved.
How do I file a comprehensive insurance claim?
Making a comprehensive insurance claim is a standard process that is almost identical to the one used to make any claim to a car insurance company. Filing the claim is a straight-forward process. You can simply contact your car insurance company directly, and they will walk you through the process.
How much does comprehensive insurance cost?
The cost of comprehensive insurance can vary a great deal. Insurance companies consider where you live, your driving history and many other factors. It might sting to add any cost to your insurance policy, but this coverage is what protects you from the truly unexpected.
What is the minimum coverage requirement in Ontario?
In Ontario, there are a few minimum requirements for your car insurance policy. These requirements include third-party liability, accident benefits, property damage and uninsured auto driver coverage. Collision and comprehensive auto insurance coverage policies are optional, but many drivers recognize their benefits and choose not to drive without adding them to the total policy.
Some insurance providers offer savings to drivers who add additional forms of coverage as a package. This is called bundling, and it can make you eligible for discounts. Your insurance broker can help find coverage options that make sense for you.
