Get Collision Insurance for Your Vehicle

Collision insurance protects against damage that results from your vehicle colliding with an object. This may be another vehicle, a guard-rail or a tree, among other things.

If you have collision insurance, your insurance provider will pay to repair or replace your vehicle, up to its actual cash value, regardless of who is at fault.

What collision insurance doesn’t cover can be summarized as everything outside of colliding with another object. If, for example, your car is vandalized while parked, or if your windshield is cracked by hail while you’re driving, collision insurance will not cover the resulting costs.

Collision insurance is defined as an optional coverage type in Canada, with the exception of Manitoba, where it is mandatory. This means the majority of Canadians have the option to add or forego collision coverage. If you are leasing your vehicle, however, your lender may require that you have collision coverage. 

Because collision insurance is an optional type of coverage, there is no such thing as a quote that shows the cost of collision insurance by itself. All quotes you receive for a policy that includes collision insurance will reflect the total sum of standard coverage + collision coverage + any additional coverage you opt into. What is defined as ‘standard coverage’ varies by province but will always include third-party liability. 

Yes. Having collision insurance means your insurance company is taking on more risk, which means they’ll charge more. Precisely how much collision insurance will increase your premiums depends on the make and model of your vehicle, the amount of coverage you add and the deductible you have. And, just as the cost of a standard car insurance policy will vary from provider to provider, different companies will charge different amounts for collision insurance. 

Most likely. Collision coverage is offered by all major auto insurance providers. You can contact your current car insurance provider to have collision coverage added to your existing policy or select it as an add-on when given a new car insurance quote. 

Collision insurance can give drivers added peace of mind, knowing they won’t be financially responsible to repair or replace their vehicle in the event of a collision. But while the added protection is nice, it’s not free. Each individual driver should consider whether collision insurance is worth the cost in their own specific scenario.

Generally speaking, collision insurance is most practical for those with vehicles on the expensive side - vehicles that cost a lot to fix or replace out of pocket. If, on the other hand, you have a car that’s worth only a couple thousand dollars, collision insurance is likely not worth the cost, as your premiums and deductibles will quickly outpace the amount of compensation you’ll receive in the event of a claim.

Additionally, getting collision insurance is usually a prerequisite if you plan to lease a vehicle.

Collision insurance protects against damage caused by another vehicle or an object – e.g. you’re involved in a collision or drive into a streetlight. Comprehensive insurance protects against non-collision damage, like dents caused by hail or vandalism.

When selecting the coverage for your vehicle, collision vs. comprehensive insurance isn’t an either/or decision; drivers can choose to add one, both or neither type of coverage to a standard policy.

Depending on your vehicle, the replacement or repair cost can be great, which means higher risk for your insurance company. This means collision insurance may sometimes cause premiums to increase in a significant way. However, there are several factors that determine the added cost of collision insurance, and it will vary from provider to provider, and from driver to driver.

Many of the same factors that determine the cost of standard auto insurance contribute to determining the cost of collision insurance. Chief among these factors is the replacement value of your vehicle, as the this dictates how much your insurance company will need to pay should you make a claim.

Yes. Collision insurance coverage requires the policyholder to have a deductible that’s specific to collision claims. A typical deductible for collision insurance is $500 or $1,000, but the options may vary by provider.

When people think about car insurance, most expect their policy will cover damage from a car accident. But this isn’t always the case. If you’re in an accident that is someone else’s fault, their third-party liability insurance, which is a mandatory type of coverage, will pay for the repairs or replacement of your vehicle. However, if you’re at fault for a collision, or are involved in a single-car collision – e.g. you hit a tree – standard auto insurance may not cover the costs.