Blog & Articles - Gibb Insurance

Understanding Collision and Comprehensive Coverage

Understanding Collision and Comprehensive Coverage
Collision Coverage 

In Ontario, people can generally purchase Collision Coverage for their vehicle as an option. The Collision Coverage pays to repair damage the insured vehicle in the event the damage is caused by an accident that is your fault (avoid a deer, hit a tree) OR if the damage is caused by an ‘unidentified motorist’ (hit and run). This feature of the coverage is important as many times people are involved in an accident that is clearly not their fault, but because the ‘at fault’ driver is unknown, the claim has to be processed under the Collision Coverage. 

When a car is older and has a high deductible, some people consider ‘dropping’ the optional Collision Coverage. 

Comprehensive Coverage 

Comprehensive Coverage pays for damage caused by almost anything that is not a collision. As an example: fire, theft, vandalism, tree falls on a vehicle, tidal wave, crazy ex slashes tires, etc. The cost of comprehensive coverage is quite low, so usually, most people keep it even with an older vehicle. 

It’s important to note that comprehensive coverage only covers the vehicle and anything permanently attached to the vehicle. So, if your vehicle is vandalized and broken into and they steal your 7 furs, Rembrandt painting, and 3 gold bars... the only thing covered is the damage to the vehicle. The contents might be covered by your home/tenants insurance. Keep in mind that if damage occurs, your Rembrandt is stolen, and the policies are with different insurance companies: you’re likely to be charged two deductibles (one of the reasons it’s best to have your home and auto insurance policies with one company, as they usually would only charge one deductible). 

In the second part of this article, we’ll discuss the considerations when deciding whether or not to ‘drop’ comprehensive or collision coverage. In the meantime, if you have questions regarding Comprehensive or Collision insurance, please give us a call: 519-736-8228.