What Is Collision Insurance in Canada?

What is Collision 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:

• Collision insurance
• Specific risks (list of risks specified in your insurance policy)
• Accidents without collision or upset (e.g. fire, theft, vandalism, etc.)
• Comprehensive (All Risk Insurance)
• Additional options known as “endorsements” (e.g. replacement value, roadside assistance, car rental insurance, excess waiver, personal insurance, etc.).

As the name suggests, collision insurance covers damage to your vehicle, whether or not you are at fault in an accident. But it also covers damage caused by collision with an object (e.g. garage door) and hit-and-run accidents.

Since it’s optional, you can add this coverage to your liability insurance or other insurance policy. So if you’re involved in an accident and you’ve taken out collision insurance, your vehicle will be covered, and you won’t have to pay for repairs.

Are You Covered for Collision Damage?

Collision insurance covers all damage that may be caused to your vehicle in the event of a collision with another vehicle or object. For example, if you’re backing up and hit someone else’s car or property (e.g. fence, garage door, underground parking wall, etc.), the damage will be covered by collision insurance and you won’t have to pay for repairs or replacement. As mentioned above, collision insurance also covers repairs in the unfortunate event of a hit-and-run. As such, it is an essential insurance coverage to add to your liability insurance policy.

Are you covered for a not-at-fault accident if you don't have collision insurance?

Basic car insurance only includes liability insurance. So if you don’t have collision insurance, you’re not covered for damage to your vehicle if you’re involved in an accident. This is the case whether or not you are responsible for the accident.

However, there is one exception. Depending on your province of residence, you may be covered if the damage is caused by a hit-and-run accident. Check with your insurer or contact an insurance broker like ClicAssure to learn more.

What's the difference between collision and comprehensive insurance?

There is some confusion between collision insurance, comprehensive excluding collision or upset and comprehensive insurance. Here are the main differences…

Collision insurance covers damages caused by a collision with another vehicle or an object such as a garage door or a fence. It also covers repairs if you are a victim of a hit-and-run accident. In short, your insurer will cover the cost of repair or replacement, whether or not you are at fault.

On the other hand, Comprehensive excluding collision or upset covers damage to your vehicle not caused by collision or upset, such as fire, theft, vandalism and windshield replacement. It also damage caused by weather conditions (flooding, windstorm or hail, falling trees, etc.) and damage caused by collision with an animal.

Finally, comprehensive insurance offers the greatest protection of all types of car insurance policies. Although the insurance premium is higher, it combines collision protection, coverage for accident without collision or upset, comprehensive coverage and much more.

Check the terms and exclusions in your car insurance policy or when you compare car insurance quotes online. If you have any questions, don’t hesitate to speak with an insurance agent or broker like ClicAssure to fully understand the insurance coverage required for your needs.

Do You Need Collision Insurance?

That’s the question many people are asking! Do you need collision insurance for your vehicle?

First of all, understand that liability insurance is mandatory by law. Secondly, the choice of optional insurance such as collision or comprehensive coverage depends on your personal and financial situation. However, if you are involved in an accident and only have basic car insurance, repair costs will not be covered.

That said, if you’ve bought a new car, collision insurance is a good way to protect your purchase. You might even consider taking out comprehensive insurance. On the other hand, if you drive a used car of low value, then basic car insurance may be sufficient for you. Take your personal situation and other factors into account so you can make an informed decision.

However, if you lease or finance a vehicle, collision insurance is generally required by the lender.

Bottom Line

In short, collision insurance is optional coverage that you can add to your basic car insurance (liability insurance). It covers damage caused by a collision with another vehicle or an object such as a garage door. If you want to add this insurance coverage, you can start by comparing car insurance quotes online.

What is collision insurance?

Collision insurance covers damage to your vehicle, whether or not you are at fault in an accident. It also covers damage caused by a collision with an object such as a fence or garage door. This is optional insurance that you can add to your car insurance policy. So if you’re involved in an accident and you’ve taken out collision insurance, your vehicle will be covered, and you won’t have to pay for repairs.

Does car insurance pay for repairs when you're at fault?

If you have purchased collision coverage for your vehicle, the insurance company will reimburse the cost of repair or replacement, whether or not you are at fault in an accident.

Does being the at-fault driver in the event of a collision affect insurance coverage?

Yes. If you are the victim of an accident that is not your fault, your car insurance will cover the cost of repairing your vehicle. However, if you are responsible for the accident, you will not be covered. On the other hand, if you have taken out collision insurance, you are covered, whether or not you were at fault in the accident.