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Updated Aug. 30, 2024
Comprehensive car insurance covers non-collision damage to your vehicle. In most cases, this coverage addresses threats that are beyond the control of the driver (and other drivers on the road).
This includes minor damages, like a chipped windshield caused by hail, as well as larger issues, like body damage caused by an earthquake.
Though auto insurance is mandatory in Canada, having comprehensive coverage is optional. It may, however, by required by your lender if your vehicle is leased.
If you own your vehicle outright, or are not obliged to get comprehensive coverage as part of your lease agreement, there are several factors to consider when contemplating whether it is a necessary protection. Chief among these considerations is location: do you regularly drive or park your vehicle places that face non-driving perils.
For example, in Yukon, northern Alberta and northwestern Ontario, wildfires are a frequent occurrence that pose a threat to your vehicle. When you have comprehensive coverage, you’ll be covered if such an event damages your car.
A standard comprehensive insurance policy covers damage to your vehicle from:
Not all comprehensive insurance policies will include this entire roster of protections. Some policies explicitly exclude damages from certain sources.
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There are restrictions as to who can purchase comprehensive car insurance. It will vary by insurer but some of the factors include:
Figuring out when to drop comprehensive car insurance has be to be carefully weighed. Generally, you’ll want to drop it if you decide you are paying too much insurance based on the value of your car. Use your car’s value, subtract the deductible, then take away the cost of the six-month policy. If you get a negative amount, you’re likely paying too much.
The cost of your car insurance coverage depends on things like which insurer you are using, the province you live in, and of course, your premium and deductible amount. Since comprehensive coverage is generally an add-on to your policy, it will be an additional cost on your existing policy and will be subject to a deductible.
Some drivers opt to choose a smaller deductible amount for comprehensive coverage. This means the cost of your premium will increase and your overall insurance policy will cost you a bit more. However, you'd only be responsible for paying the small deductible if you file a claim. If, however, you choose a higher deductible amount, it may result in lower premiums, but you do risk paying more out of pocket if something happens to your car.
Although the costs will vary by provider, the price tag for comprehensive coverage can be between $100-$300. Adding collision insurance to your policy is much more expensive and could add an additional $500-$700 to your costs.
It’s important to know the value of your car before you figure out your deductible. Weigh the cost against potential repairs. As the car’s value decreases, losses can go up and buying optional coverages may not be worth it.
Also, know your financial situation. You may have to pay more out-of-pocket expenses down the road with a lower deductible. Will this fit into your budget? Can you afford the expenses? These are the things to consider.
Collision coverage protects against any damage that may occur from a collision with another vehicle or object, such as a wall. In contrast, comprehensive insurance covers damages caused by things like theft, hail and earthquakes.
Here’s a breakdown of the major differences between comprehensive car insurance and collision car insurance in Canada.
|
Comprehensive coverage |
Collision coverage |
|
|
What's Covered |
Non-collision damage to your vehicle, such as: · Theft · Falling objects · Fire · Floods · Earthquakes |
Damages caused by collisions, such as: · Collision with another vehicle · Collision with an object, such as a wall or fence · Single-car rollover accidents |
|
Deductible involved |
Yes |
Yes |
|
Coverage limit |
Actual cash value |
Actual cash value |
|
Is it mandatory? |
Not mandatory, but may be required by a lender if the vehicle is leased. |
Not mandatory, but recommended. Collision insurance comes in handy if someone hits you and the cost to repair or replace your car exceeds the limits of that person’s liability policy. |
|
What's not covered |
· Damage to another person's vehicle · Medical bills (personal and third party bills) · External object inside your car that are unattached, like laptops, bags etc. |
· Damage to another person's vehicle · Medical bills (personal and third party bills) |
Wondering whether you should get comprehensive car insurance? Here’s what you should know.
Though the name may imply that comprehensive coverage leaves nothing to chance, this type of coverage is not just another way of saying ‘full coverage.’ Comprehensive coverage protects against non-collision damage only. Other types of car insurance coverage include:
To protect your vehicle against all perils, each of these coverages is required.
If you’re wondering whether you should get comprehensive car insurance or not, ask yourself these important questions:
If your car’s overall value is low (i.e. under $2,000), having a comprehensive insurance policy in place may not be worth it, as it may be more economical to replace your car than repair it.
If the value of your car is high and you want to be covered for non-collision damages, having comprehensive car insurance is a good idea. Especially, if your vehicle faces increased risk from disastrous weather conditions, theft, fire, etc.
Rodents, such as rats, squirrels and raccoons, can damage parked vehicles by chewing wires and blowing up fuses, leading to high repair costs. But worry not, rodent damage is covered under most comprehensive car insurance policies. Speak with your insurer to get more details about rodent damage coverage.
Yes, comprehensive car insurance covers hail damage. A severe hail storm can significantly damage your vehicle’s body, leaving large dents and chips on your car.
If the damage is greater than your deductible, filing a claim may be worthwhile. For example, if your deductible is $500 and the hail damage amounts to $1,500, filing a claim will save you $1,000.
Yes, you can have comprehensive car insurance without collision insurance, or vice versa. These are two mutually exclusive types of car insurance, both optional rather than mandatory. You should pick the type(s) of optional car insurance coverage you need depending on your location, vehicle value and driving habits. Some people opt for full coverage car insurance (all coverages), while others try to save money by only choosing the coverage they’ll most likely need.
Comprehensive car insurance claims are similar to collision insurance claims. To start off your claim, call your insurance provider. Gather and submit the following information to ensure that your claim is approved.
A claims adjuster will investigate the claim to determine the amount covered under your policy. Once approved, the insurance company will subtract your deductible from your claim amount and reimburse you the difference.
Joel Kranc is a freelance writer and content provider who has worked with RATESDOTCA since 2019. He holds an MA in political science from the University of Toronto and a film certificate from New York University.
He has been published in and worked for such companies as CNN, Rogers Media, Institutional Investor Magazine, The Globe and Mail, Infrastructure Investor, BenefitsPRO Magazine, Global Finance Magazine, With Intelligence, the CPP Investment Board, Hospitals of Ontario Pension Plan, and many more financial services and industry publications.
He is the author of "Retirement Planning in 8 Easy Steps," which, when released in 2015, was No. 11 on the Publisher's Weekly US Bestseller List for Business and Finance, beating out Mark Cuban's "How to Win at the Sport of Business."
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