Comprehensive Car Insurance in Ontario

What does comprehensive insurance cover?

One of the most important aspects of comprehensive coverage is understanding what it can cover.

Comprehensive pays for losses other than those covered by collision or upset, including specified perils, falling or flying objects, and vandalism. Ontario auto insurance is regulated by the Financial Services Regulatory Authority of Ontario (FSRA).

Here is what it includes:

• Natural disasters and weather
• Fire damage and explosions
• Civil disturbances
• Vandalism and theft
• Damage from collision with wildlife
• Broken or shattered windows and cracked windshield
• Falling objects

What does comprehensive insurance not cover?

Comprehensive coverage does not cover medical expenses, legal fees, or lost income from an accident. Here is a look at what items are excluded from comprehensive coverage.

• Medical expenses or loss of income after an accident.
• Damage to another driver's vehicle as a result of an accident.
• Medical expenses or lost income for another person after an accident.
• Theft by a member of your household.
• Rental car accident after filing a claim.
• Personal items stolen from your car.

Should you have comprehensive car insurance?

When comparing options, it is important to determine whether comprehensive meets your needs. Some people opt not to have it to keep payment costs down.

However, you are also reducing your amount of protection. Depending on the cause of the damage, you may be on the hook for the repairs. Note that you may need to have it if you have a loan on the vehicle.

Consider these important questions when determining your needs:

• Peace of mind: Is the extra amount added to your premium worth the peace of mind?
• Financial situation: Are you able to pay out of pocket for repairs if you choose against it?
• Vehicle value: Many owners of older vehicles do not add this type of coverage because of the lower vehicle value.
• Risk: Do you think there is a risk or chance that you will need to make a claim?
• Car loan: Do you have a car loan? If so, your lender will likely want you to have comprehensive insurance.

Expect comprehensive protection to add a few hundred dollars to your car insurance quote.

How does comprehensive insurance work?

In Ontario, you can add comprehensive insurance to your auto insurance policy. This coverage provides financial protection for damages to your vehicle that are not caused by a collision.

Comprehensive insurance example

Let's say you park your car on the street overnight, and a severe storm hits the area. Comprehensive insurance will cover the repair costs if a large tree limb falls on your car, causing significant damage to the roof and windshield.

Without comprehensive insurance: You would pay out of pocket for car damage, which can cost thousands, depending on the extent.

With comprehensive insurance: If you have comprehensive coverage, file a claim with your insurance company. Once they assess the damage, they will cover the cost of repairs minus your deductible.

The terms and conditions of comprehensive coverage may vary depending on the insurance provider and your policy details. In this example, having comprehensive insurance would save you from paying for the repairs yourself as long as your policy covers the damage.

How does comprehensive insurance work for claims?

A comprehensive insurance claim is similar to a standard auto insurance claim. The only difference is what you are claiming and your deductible amount.

Most policies include a $300 or $500 deductible. You can increase your amount, which will help lower the cost. You only need to pay your deductible for claims under comprehensive coverage.

Here is a scenario to consider: you are driving, and a stone flies up on the 401 and cracks your windshield, requiring a full replacement equipped with sensor recalibration for $1,200. With a $300 deductible in place, you pay your portion, and your insurer picks up the $900 balance.

Do you need collision and comprehensive insurance?

Comprehensive policies cover more sources of damage to your vehicle than collision insurance.

If you have an older vehicle, then collision may not be in your best interests. You may want something else if you want to pay as little as possible. It all comes down to your risk tolerance and ability to cover costs if you experience damage.

For many drivers, having both types provides them with peace of mind. You will have financial protection against most threats to your vehicle.

Is comprehensive coverage worth it?

Whether or not comprehensive insurance is worth it depends on your specific situation. You may be willing to pay a little extra for peace of mind. Some people want lower monthly payments.

If you are considering the benefit of comprehensive coverage, ask yourself these three questions:

• Is your car worth less than $5,000? Consider dropping it.
• Is your car financed or leased? Mandatory.
• Do you park on the street in Toronto? Highly recommended.

If you have questions about adding additional coverage options to your policy, our car insurance brokers are ready to assist you.