Everything You Need to Know about Comprehensive Car Insurance
Comprehensive insurance will cover expenses due to non-collision vehicle damage — and this can include anything from a break-in to an act of God.
What is comprehensive car insurance?
Comprehensive insurance is optional automobile coverage. It can be used to repair or replace your car when damaged by what the insurance industry calls “all perils.” These include events like fire, theft or falling objects, which is why it is recommended along with collision insurance.
What is the cost of comprehensive car insurance?
The average cost is around $100 to $300 on top of your collision coverage. You will also need to pay a deductible if you file a comprehensive car insurance claim.
The deductible, which is the amount you pay out of pocket before insurance covers the rest, can vary depending on the type and amount of insurance you have on your policy. Some may be as low as a few hundred dollars while others can be $1,000 or more.
While this isn’t a small amount of money for many, it is relatively low cost compared with the thousands of dollars — or even tens of thousands — it could cost to repair or replace your car.
Car insurance coverage at a glance
Collision coverage
This mandatory coverage will cover your costs inan at-fault accident. Covered costs include repairand replacement to your vehicle or other vehicles involved in the accident.
Do I have to pay more for it? No. Your policy costs and deductible will bedetermined by the type and amount of yourinsurance policy. But you can pay to increaseyour coverage.
Comprehensive coverage
This add-on coverage can cover costs to replaceor repair your vehicle in all perils. This includestheft, vandalism, storm damage, flooding, fire ordamage during transport.
Do I have to pay more for it? Yes. Comprehensive coverage costs an averageof $100 to $300 on top of your collision coverage.
Third-party liability coverage
This coverage will pay out medical, legal orpersonal property damages from an accidentdeemed to be your fault.
Do I need to pay more for it? Recommended. While certain provinces havemandatory minimum coverage for third-partyliability insurance, those minimums are oftentoo low to cover losses from a major incident.It is recommended to carry at least $1 millionin third-party insurance.
What’s the difference between collision and comprehensive?
If you find yourself in an at-fault accident, your collision insurance will cover damages your car endures. However, if you get caught in a hailstorm that riddles your car with dents, collision insurance won’t help you. If the damage wasn’t caused by a crash, it falls under comprehensive.
Collision and comprehensive are two sides of the same coin. If you never want to personally pay to repair major damages to your vehicle, you’ll need both to fully protect yourself.
What does comprehensive car insurance cover?
In the world of insurance, threats to you or your property are called “perils.” As a driver, you can get specified perils coverage for cost of damages from:
Fire
Explosion
Harsh weather
Lightning
Earthquake
Rising water
Car theft
Riots
Damage during transport
While this list seems extensive, it has glaring omissions that quality comprehensive auto insurance covers:
Vandalism
Animal collision
Falling objects
Flying debris
Windshield damage
In this way, comprehensive coverage earns its name. The garage burned down and took your car with it? You’re covered. You hit a deer and it smashed your windshield? You’re covered. Heavy winds picked up a stop sign and chucked it into your door? You. Are. Covered.
How do you file a comprehensive car insurance claim?
Filing a comprehensive insurance claim is simple. If your car is damaged in a non-collision, take pictures of the scene and write down anything that you witnessed. In the case of vandalism or theft, also remember to file a police report.
With these details, your provider can determine whether the damage falls under your comprehensive coverage. If it does, you’ll pay a deductible, and your insurance will cover the rest up to your limit.
Going online with Onlia makes it easier than ever to file a claim and get the help you need. Our online claims flow is fast and easy to understand.
Does comprehensive insurance mean “full coverage”?
When you hear the term “full coverage,” it doesn’t actually refer to a specific insurance policy. It’s the combination of the three most prominent types of insurance: liability, collision and comprehensive.
In Canada, third-party liability is included in your mandatory insurance, so you can achieve full coverage by adding the other two. Together, these insurance policies will cover you for most incidents that would otherwise cost big money.
Is it worth having comprehensive coverage?
If you’re willing to pay the cost of repairs if your car gets damaged, then comprehensive coverage might not be worth the price. But you should know that along with the out-of-pocket expenses are the hassles of finding a reputable body shop and arranging payment terms with them directly, arranging rental car pickup and return, and timing it all with when the body shop is scheduled to return your car — assuming they get it done in time.
So before you make a call, decide if foregoing comprehensive insurance is worth the hassle you’ll have to endure.
Most experts would recommend adhering to the 10% rule: if the cost exceeds 10% of the total value, then it’s cheaper to go without. Even so, comprehensive is inexpensive compared to liability and collision, so it may still be of value for your needs.
