Apr 6, 2020
What You Need To Know About Comprehensive Car Insurance
Comprehensive car insurance is one of the many different types of coverage you can add to your policy. Many Ontario drivers have confusion about the meaning of comprehensive insurance and if they have the coverage in their policy. It is a very important coverage type to get more protection.
Not sure if you have the coverage? Are you shopping for a policy? It is time to renew?
In this blog, you’ll learn about comprehensive insurance in Ontario. We’ll explain comprehensive insurance policies, how much it costs, and when you need it. Get answers to common questions about this type of car insurance.
What Is Comprehensive Auto Insurance?
Comprehensive auto insurance is an important form of protection. Many people assume it means having coverage against any and all damage to your vehicle. Comprehensive coverage provides protection against damage that is not related to car accidents, when your vehicle is stationary.
What is and is not part of a comprehensive insurance policy can be different depending on your insurance company in Ontario. It’s important to understand which perils (threats to your vehicle) are covered in your policy.
What Does Comprehensive Insurance Cover?
Comprehensive coverage provides you with additional protection not in basic auto policies. It is above and beyond the minimum coverage requirements in Ontario.
“This coverage pays for losses, other than those covered by Collision or Upset, including perils or dangers listed under Specified Perils, falling or flying objects, missiles and vandalism,” says FSCO.
A comprehensive insurance policy provides protection against non-collision related threats. Here is what falls under comprehensive auto insurance :
- Natural disasters
- Fire damage and explosions
- Civil disturbances
- Vandalism and theft
- Damage from collisions or impact with animals
- Broken / shattered windows and windshield
- Falling objects
How Does Comprehensive Car Insurance Work In Ontario?
Comprehensive auto insurance is an optional form of coverage you can add on to a standard insurance policy. It’s much like all perils coverage, specific perils coverage, and optional policy endorsements (OPCFs). They provide you additional coverage and protect your vehicle against threats in a variety of situations.
What Does Comprehensive Insurance Not Cover?
There are things comprehensive policies do not include. They are :
- Damage to your vehicle from an auto accident
- 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
- Rental car coverage after filing a claim
Does Comprehensive Insurance Cover Driving Other Cars?
This depends on your insurance policy. Not all auto insurance policies are the same. It’s important to check with your insurance provider to get clarification. It was common to have coverage for driving other cars (DOC) as part of comprehensive coverage. However, many insurance companies now offer DOC coverage under a full comprehensive policy.
What Is Fully Comprehensive Coverage?
Fully comprehensive coverage, or full comprehensive or fully comp, provides additional coverage for most situations. Check with your insurance company for a complete list of coverage. It also includes coverage to drive another person’s vehicle. You get protection against fire, theft, vandalism, accidental damage, and other perils.
Does Comprehensive Auto Insurance Cover Theft?
Yes, comprehensive coverage provides you with protection against vehicle theft. If your vehicle is stolen, this coverage will cover the cost to repair and recover your vehicle. You will just be responsible for paying the comprehensive coverage deductible.
What it does NOT cover is theft by a member of your household.
What Is A Comprehensive Claim?
A comprehensive insurance claim is similar to a standard car insurance claim. The only difference is what you are claiming and your deductible amount.
Comprehensive claims are for damage caused to your vehicle that does not involve an auto accident. You file these claims in the same manner as a normal car insurance claim. Call your insurer to notify them of the damage. They will assist you with the steps you need to take.
How Much Is A Comprehensive Deductible?
When you add comprehensive coverage, you will need to select a deductible amount. Most policies include a $300 or $500 deductible for comprehensive coverage. You can increase your deductible amount. This will help lower the cost of the coverage.
You only need to pay your deductible for claims that falls under your comprehensive coverage. Your comprehensive deductible is separate from your collision deductible.
What Is My Comprehensive Coverage Policy Limit?
Comprehensive policies are subject to coverage limit. This amount is different depending on your policy options and insurer. Your limit is the most your policy will pay out. A claims made under comprehensive coverage are subject to these limits.
How Much Does Comprehensive Car Insurance Cost?
How much is comprehensive insurance? This is the question all drivers want the answer to before adding comprehensive coverage to their policy. Like many other insurance policies and coverage options, the cost of comprehensive auto insurance varies.
In general, expect it to add a few hundred dollars your yearly car insurance premium. Again, this will vary based on where you live, your insurer, and other factors.
Is Comprehensive Car Insurance Worth It?
Should you remove the coverage? Should you add it to your policy? These are important questions to consider when determining your car insurance needs. It comes down to comparing the cost of adding comprehensive coverage to the risks of not having coverage.
- 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 not to get comprehensive coverage?
- How Much Is The Coverage : How does the cost of comprehensive coverage compare to other named perils, and additional coverage options?
- Vehicle Value : What is the value of your vehicle? Many owners of older vehicles don't get comprehensive coverage because of the lower value of their vehicle.
- Risk : Do you think there is risk or chance that you will need to make a comprehensive claim?
- Car Loan : Do you have a car loan? If so, your lender will likely want you to have comprehensive coverage.
Think about these questions to determine your need for a comprehensive insurance policy.
Should You Have Comprehensive Coverage?
When comparing car insurance options, it’s important to determine whether or not comprehensive insurance meets your insurance needs. Some people opt not to have comprehensive car insurance as a way to lower insurance rates.
However, you are also reducing your amount of coverage. Depending on the cause of damage, you may be on the hook for the repairs. Whether you should or shouldn’t have the coverage is up to you. Note that you may need to have the coverage if you have a loan on the vehicle.
Comprehensive Or Third Party Car Insurance?
A common question we get asked is if you can covert third party insurance to comprehensive coverage. Comprehensive and third party liability are different types of coverage. Third party coverage is mandatory. It covers you if you are at fault for an accident that results in damage or injury. Comprehensive is optional. You can add it to a policy with third party coverage. For most drivers, its recommended to have both.
When Should You Consider Dropping Comprehensive Coverage?
There are no specific rules about when you should drop comprehensive coverage. Many people consider dropping the coverage as their vehicle ages. It’s a quick way to save money on insurance. Vehicles depreciate at different rates, so it depends on your current situation.
Consider the value of your car against your insurance costs, deductible, and financial situation. It may make sense to drop the coverage. Speak with your insurance expert about your situation.
Comprehensive Vs. Full Coverage Auto Insurance – What’s The Difference?
Full auto insurance is something people refer to when they have all types coverage. This means you have comprehensive, collision, and other optional coverage as part of your policy.
What’s The Difference Between Collision And Comprehensive Auto Insurance Coverage?
Some confusion exists between collision and comprehensive insurance coverage. This is partly due to the fact that both coverages apply as a result of damage to your car. But each coverage protects you from different causes of the damage.
Comprehensive insurance covers more and different sources of damage to your vehicle than collision insurance coverage. If you opt for comprehensive insurance coverage, make sure you understand what coverage is in the policy.
Do You Need Collision And Comprehensive Insurance?
Again, this depends on your situation. If you have an older vehicle, then collision coverage may not be in your best interests. If you want to get the lowest rates possible, having neither may be what you want. It all comes down to your risk tolerance and ability to cover costs if you experience damage.
For many drivers, having both forms of coverage provides them with the peace of mind in knowing they have coverage. You’ll have financial protection from the majority of threats to their vehicle.
If you decide you need both forms of coverage, you may want to consider all perils coverage. This coverage combines collision and comprehensive coverage.
For others, you may require a specific form of coverage. In this case a specified perils policy may be your best option.
Comprehensive Car Insurance FAQs
Still have more questions about comprehensive car insurance coverage and policy options? Here are some additional common questions about this coverage type :
No. Comprehensive auto insurance is optional. You do not have to add this coverage to your policy. However, it’s highly recommended. Most drivers have this coverage.
Not sure if you have comprehensive coverage? Check your insurance policy. If you do, your policy will outline the coverage limits, deductible and other information. You can also speak with your insurance expert to get clarification.
If you lease or finance your vehicle, you will most likely need to have comprehensive coverage. This will be part of your lease or finance agreement.
You can compare prices and quotes anytime. You can compare quotes when your policy is up for renewal. You can also compare comprehensive car insurance rates anytime you are thinking about adding it to your policy.
A comprehensive policy may cover you for damage to your vehicle from rodents and animals. Check your policy and speak with your insurer to confirm if you have coverage.
Yes. Comprehensive coverage will cover damage to your vehicle from hail and other types of weather damage.
No. Coverage for a rental car is available by adding policy endorsement OPCF 20.
Yes. You will have a deductible for comprehensive coverage. It is different from other deductibles in your policy.
Comprehensive claims typically stay on your insurance record for 3 years. It could be longer depending on your insurer.
Without comprehensive coverage, you would have to pay for repairs to your vehicle for non-accident damage. This includes theft, vandalism, weather damage, collisions with animals, and more.
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