Car insurance is essential for all Ontario drivers, but the type of coverage you choose can make a big difference in the protection it provides. Comprehensive car insurance is one option that goes beyond the basic requirements, offering a range of benefits for those seeking extra peace of mind. While traditional car insurance meets the legal minimum for on-road incidents, comprehensive coverage shields you from unexpected non-collision events like theft, vandalism, and extreme weather. This guide explores what comprehensive car insurance covers, why it might be beneficial, and key considerations for deciding if it’s right for you.
What is Comprehensive Car Insurance?
As opposed to regular car insurance, comprehensive insurance goes above and beyond the minimum requirements in Ontario. It provides coverage for non-collision incidents like vandalism and car theft, among other potential events.
Why is Comprehensive Car Insurance Important in Ontario?
Car insurance is required by law in Ontario. So, you might be wondering why comprehensive car insurance is important when regular car insurance meets the legal requirements. This is because regular car insurance only protects you if your vehicle is in a collision and you are not at fault.
What Does Comprehensive Car Insurance Cover in Ontario?
In Ontario, comprehensive car insurance can cover:
- Natural disasters and extreme weather, such as wildfires, hail, blizzards, and high-wind storms;
- Fire damage and explosions;
- Civil disturbances resulting in vandalism to your vehicle;
- Car theft;
- Damages from collisions with wildlife, such as raccoons and deer;
- Broken windows and windshields from flying debris or vandalism;
- Falling objects.
Accidents happen. Comprehensive car insurance acts as peace of mind that your vehicle is safe at all times, no matter what might occur. This also reduces high out-of-pocket costs associated with repairs.
What Does Comprehensive Car Insurance NOT Cover in Ontario?
There are limitations to comprehensive car insurance in Ontario. While it covers many damages that could happen, there are some events that exist outside of this coverage, including:
- Medical expenses related to an accident;
- Lost income after an accident;
- Car theft by a household member;
- Rental car accidents;
- Personal belongings were stolen from inside the car.
For these eventualities, you would require other types of insurance.
Should You Have Comprehensive Car Insurance in Ontario?
Comprehensive car insurance may not be for everyone. This is especially true for those looking to keep their insurance premiums low. Here are some factors to weigh in your decision:
- Peace of mind vs. the cost. While comprehensive car insurance provides a lot of peace of mind for you, it may not be worth the monthly costs of the insurance plan.
- Your financial situation. While car insurance is required in Ontario, comprehensive car insurance would be an optional, more expensive plan than the legal minimum.
- Your vehicle value. The more expensive your vehicle is, the more comprehensive car insurance would be a good match for you. This is because, generally, less expensive vehicles are generally also less expensive to repair.
- Risk assessment. You may live in an area that rarely sees extreme weather and has low car theft. In that situation, it may be best not to get comprehensive car insurance.
- Loan requirements. If you have a car loan, your lender may require comprehensive car insurance to stay in good standing with your loan.
How Does Comprehensive Car Insurance Work in Ontario?
Comprehensive car insurance works the same as other forms of car insurance in Ontario.
- In the event of an incident, you contact your insurance broker to file a claim.
- Your vehicle will need to be assessed for damage.
- Your insurance claims adjuster will then share coverage for the cost of repairs minus your deductible.
Knowing the terms of your insurance before something happens is important, as there may be coverage limits requiring you to pay more over a certain threshold.
Benefits of Having Comprehensive Car Insurance
Having comprehensive car insurance gives you the peace of mind that, no matter what, your car is covered in the event of a non-collision incident. Unforeseeable incidents may be just that—unforeseeable—but you can still be prepared with appropriate insurance.
Alternatives to Comprehensive Car Insurance
In working with your insurance broker, they can provide advice on whether comprehensive insurance is right for you. Consider details like if your vehicle is older and near the end of its life. In these cases, most drivers are sufficiently covered with a different, more cost-conscious type of insurance.
Comprehensive Car Insurance vs. Other Coverage Options
There are multiple car insurance coverage options in Ontario, and they differ slightly in what they cover. These include:
- Third-party liability insurance, which is mandatory in Ontario and protects you when you’re in an at-fault accident;
- Collision insurance, which can help cover the costs of repairing or replacing your vehicle in the event of a collision;
- And all perils insurance, which is a combination of collision, comprehensive and a few additional coverages for your car insurance.
Key Takeaways
Comprehensive car insurance in Ontario offers an added layer of protection beyond basic collision coverage, safeguarding you from the financial impact of events like theft, vandalism, and natural disasters. While it’s not legally required, the peace of mind that comes with comprehensive coverage can be invaluable for many drivers, especially those with high-value vehicles or in areas prone to extreme weather or higher crime rates. However, it’s important to weigh the cost, your vehicle’s value, and personal risk factors when deciding if comprehensive insurance is worth it. Ultimately, comprehensive car insurance provides a safeguard against the unexpected, allowing you to drive confidently, knowing you’re prepared for more than just the typical collision risks.
At Rowat Insurance, we want to help you get the best coverage that you can. Contact us today to learn more about how we can help you keep your vehicle safe.