What Is Comprehensive Car Insurance in Canada?
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Comprehensive car insurance is all-inclusive coverage for your vehicle, protecting you against damage with or without collision or upset, including fire, theft, vandalism, weather damage and much more. This article explains what comprehensive insurance is, and how it differs from other types of coverage.
What is Comprehensive Car Insurance?
By law, car insurance is mandatory in Canada. Basic coverage includes liability insurance of a minimum of $200,000 (except in Quebec). Other insurance coverages are optional:
- Collisions or upsets
- Specific risks (list of risks specified in your insurance policy)
- Comprehensive excluding collision or upset (fire, theft, vandalism, etc.)
- Comprehensive (All Risk Insurance)
- Additional options known as “endorsements” (e.g. replacement value, roadside assistance, car rental insurance, etc.).
As the name suggests, comprehensive car insurance covers all risks. For example, it combines third-party liability insurance, collision and upset coverage, and comprehensive excluding collision or upset (fire, theft, vandalism, windshield replacement, damage caused by bad weather such as hail, etc.) in a single policy.
What Are the Advantages of Comprehensive Car Insurance?
Although the insurance premium is more expensive, comprehensive car insurance is advantageous because it covers all risks. In fact, it’s the most popular car insurance coverage in Canada. So whether or not you’re at fault in an accident, your vehicle is damaged by natural disasters such as hail or flooding, or you’re the victim of a hit-and-run, you’ve got nothing to worry about. You’re covered!
What’s the Difference Between Comprehensive and Other Types of Car Insurance?
Firstly, collision and upset insurance coverage covers, as its name suggests, damages caused by a collision or upset.
Secondly, coverage for specific risks covers a list of risks specified in your insurance policy. However, it does not cover damages caused by a collision, fire, theft, or vandalism if these are not covered risks.
Comprehensive excluding collision or upset covers damage without collision or upset, such as fire, theft, vandalism, windshield replacement and weather-related damage.
Finally, comprehensive car insurance coverage offers the greatest protection of all policy types. In fact, it combines the protections listed above.
That said, check the conditions and exclusions in your car insurance contract or when comparing car insurance quotes online. If needed, speak with an insurance agent or broker like ClicAssure to fully understand the insurance coverage required for your needs.
How Does the Comprehensive Deductible Work?
The insurance deductible is the amount you must pay in the event of an insurance claim. The amount you pay depends on your insurance policy and its conditions. Typically, car insurance deductibles range from $100 to $2,000.
Deductibles generally apply to collision or upset coverage and comprehensive car insurance coverage. You can choose a different deductible amount for each type of coverage. For example, you could choose a deductible of $500 for collisions and upsets, and $100 for all other risks (fire, theft, vandalism).
Does car insurance cover damage caused by an at-fault accident?
As a general rule, physical damage to your vehicle caused by an at-fault accident is covered if you have collision or comprehensive insurance. If you only have basic coverage (liability insurance) or comprehensive excluding collision or upset, your insurer will not cover repairs to your car. In this case, you will have to pay the repair costs yourself.
Do You Need Comprehensive Car Insurance?
By law, you must take out third-party liability insurance, the minimum amount of which varies according to where you live. But choosing optional insurance such as comprehensive car insurance depends on your personal and financial situation. If you’ve bought a new car, comprehensive cover is certainly a good option to protect your purchase and drive with a certain peace of mind.
On the other hand, if you drive a used car with low value, or if you have a budget that allows you to pay for repairs, then comprehensive car insurance may not be the best option for you.
In summary, take into consideration your personal situation and other factors to be able to make an informed decision.
How Can You Reduce Your Comprehensive Car Insurance Premiums?
There are several ways to reduce your car insurance premiums, such as:
- Increase your insurance deductible
- Bundle your car and home insurance. For example, with our partner ClicAssure, you can save up to an additional 15% when you combine your car and home insurance.
- Get multiple car insurance quotes and compare them
- Contact a car insurance broker
To learn more, read our complete guide to car insurance.
Bottom Line
In short, comprehensive car insurance is all-inclusive coverage for your vehicle. It protects you against damage with or without collision or upset, including fire, theft and vandalism. It’s more expensive than basic insurance coverage, but you can drive with peace of mind.
Before taking out a new insurance policy, it’s essential to compare car insurance quotes to find the one that best suits your needs and budget.
What is included in comprehensive car insurance?
Comprehensive car insurance includes third-party liability, collision and upset coverage, and comprehensive coverage for damage caused by fire, theft, vandalism, windshield replacement or natural disasters.
When should buy comprehensive car insurance for your vehicle?
Insuring your vehicle with comprehensive car insurance depends on your personal and financial situation. For example, if you’ve bought a new car, comprehensive coverage is a good option to protect your purchase and drive with peace of mind.
How much does comprehensive car insurance cost?
The price of comprehensive car insurance varies according to a number of factors, such as the make, model and year of production of your car, your driving history, where you live, your age and your gender. In some cases, your credit rating is also taken into account when calculating your car insurance premium.
When should you take out comprehensive car insurance?
If you’re planning to buy a new vehicle, you may want to take out comprehensive car insurance to protect your purchase. Consider your personal and financial situation when choosing car insurance.
