Comprehensive insurance is one of the most common coverage options added to car insurance policies. Although, it is not mandatory for drivers in Ontario to have comprehensive coverage, it can be extremely important for anyone who’s looking for broader auto insurance protection.
What is comprehensive insurance?
Comprehensive insurance is an optional coverage added to a car insurance policy that protects you from specific types of damage to your car that are not a result of a collision with another vehicle.
Common things that comprehensive insurance covers
Collisions remain the number one cause of car insurance claims in Ontario. However, there are plenty of other ways your vehicle can suffer damage besides an accident on the road. Comprehensive coverage protects you from damage caused by any of the following:
- Fire & explosion
- Flying or falling objects
- Glass damage
- Damage caused by extreme weather (i.e. windstorm or hail)
Comprehensive does not cover everything
The name comprehensive insurance causes some confusion for drivers. Many believe that the coverage will provide them with protection in any situation. However, that is not the case. There are several scenarios not covered by your comprehensive car insurance, including:
- Damage from a car accident – Vehicle damage resulting from an accident is covered under your optional collision coverage.
- Injuries from a car accident – Coverage for injuries sustained by you, a passenger, or another driver are covered by your standard or increased accident benefits.
- Rental car after a claim – The cost of a rental vehicle after a claim is covered by an optional endorsement added to your policy called OPCF 20.
- Coverage to drive other vehicles – This is covered by another optional endorsement that can be added to your car insurance called OPCF 27.
How much does coverage cost?
The cost to add comprehensive insurance to your policy will vary depending on the company you’re insured with, your vehicle, your insurance history, where you live, and the deductible you choose. Generally, drivers in Toronto can expect to pay a few hundred dollars a year to have comprehensive coverage on their car insurance policy.
Do I really need comprehensive coverage on my policy?
Some drivers will choose to go without comprehensive insurance as a way to lower their monthly insurance premium. However, before you remove comprehensive coverage from your policy, there are three important questions you need to answer first.
- How old is my vehicle?
- What’s the replacement value of my vehicle?
- Can I afford to repair or replace my car without insurance?
Insurance Pro Tip
Vehicles that are leased or financed will be required to carry comprehensive insurance coverage. Most lenders will add this as a condition in the financing terms.
Comprehensive insurance can be a very important coverage that will help you pay for losses, other than those protected by collision coverage.
Depending on your individual situation, comprehensive insurance can be a valuable add on to your car insurance policy. For many drivers who own vehicles less than 10 years old, the added peace of mind provided by comprehensive coverage is well worth the additional premium.
Have more questions about comprehensive insurance or other coverage options? Get in touch with one of our licensed insurance professionals 7 days a week.