The Basics of Comprehensive Car Insurance in Canada

When you buy car insurance in Canada, certain types of coverage are automatically included to protect you in the event you injure someone else or damage their vehicle in an accident. However, these basic coverages typically don’t extend to your own car, leaving you unprotected against unexpected incidents, like a falling tree branch or a deer crossing your path. 

Thankfully, comprehensive coverage exists for this very reason and is an option for those who would feel better knowing their vehicle is protected against a wider range of risks.

In this article, you’ll learn about the basics of comprehensive coverage in Canada, including what it covers, how it differs from collision coverage, and how to check if you already have it. You can then apply this knowledge to better evaluate your current car insurance policy or any future policies you may purchase, ensuring you choose the coverage that best suits your needs.

What is comprehensive coverage in car insurance in Canada?

Comprehensive coverage is an optional type of car insurance coverage that is designed to protect your vehicle from incidents where fault isn’t a factor, such as fire, theft, vandalism, or severe weather. Since non-collision situations are often beyond your control and can happen even when you’re not driving, like a branch falling on your car or your car being stolen, comprehensive coverage is the answer many drivers are looking for to ease their worries and protect them from unexpected expenses.

What comprehensive car insurance cover​s

Comprehensive car insurance protects your vehicle from a range of unexpected, non-collision incidents that standard policies don’t cover. While mandatory insurance handles liability for injuries and damages you may cause to others, comprehensive coverage safeguards your own car in cases such as:

• Weather damage (ex. hail, wind, etc.)
• Vandalism (ex. graffiti, keyed paint, slashed tires, broken windows, etc.)
• Theft (ex. stolen car, stolen parts, catalytic converter theft, etc.)
• Falling objects (ex. tree branches, construction debris, falling ice, etc.)
• Fire

Unfortunately, these are the types of risks people often assume are automatically covered, when they’re not. Without adding comprehensive coverage to your policy, you may be left without financial protection from these types of incidents. If you’re unsure about your current car insurance, consider this your sign to check and if you don’t know how to do that, see below for help.

Are comprehensive and collision coverage the same?

No, collision and comprehensive coverage are not the same, but together they offer many drivers a fuller sense of protection. Collision coverage protects your car in accidents involving another vehicle or object, while comprehensive coverage protects against non-collision-related damage like theft, vandalism, fire, natural disasters, or hitting an animal. You can see the types of damage and situations covered by each in the following table. 

How to check if you have comprehensive car insurance​

If you’re unsure whether your policy includes comprehensive coverage, it’s best to find out sooner rather than later to avoid being caught off guard down the road. To help you do so, here are a few ways to check if you have comprehensive car insurance.

Option 1: Check your online insurance account

Most Canadian insurers allow you to access and manage your policy through an online portal. If your insurer offers this feature and you have your login credentials, log in and look for a section called “Coverage Overview” or “Policy Details.” This is usually where you’ll find information about the types of coverage you have, including comprehensive coverage.

Option 2: Review your policy documents

When you first purchased your car insurance policy, your insurer would have sent you a multi-page document either by email or mail. You should have a copy of this document on hand, either electronically or in paper form. Once you locate it, look for the sections titled “Coverage Summary” or “Policy Coverage,” as this information can usually be found there.

Option 3: Contact your insurance broker or company 

If the first two options don’t provide the information you’re looking for or you’re uncertain about what you’re seeing, reach out to your insurance broker or company directly. Ask them to clarify whether comprehensive coverage is included in your policy.

How much does comprehensive car insurance cost​

In Canada, the types of mandatory coverage automatically included in car insurance policies vary by province or territory. Third-party liability, for instance, is usually one of them. Comprehensive coverage, however, is not. This means that if you want to be covered for damage caused by weather, vandalism, theft, fire, or falling objects, you need to opt in and pay for comprehensive coverage. Otherwise, any costs from such damage will have to come directly out of your own pocket.

So, how much does it cost to add comprehensive coverage to your car insurance? In the following table, you’ll find example quotes comparing the cost of car insurance with and without comprehensive coverage in Ontario and Quebec. Keep in mind these examples are meant to give you a general idea of the price difference; actual costs will vary based on factors like your location, driving record, and insurance claims history.

If you’re curious about the price difference between Ontario and Québec, it largely stems from Quebec’s public car insurance plan. In Quebec, drivers are required to purchase only a portion of their coverage from private insurance companies or brokers, such as YouSet. The rest is provided through the public system. On the other hand, drivers in Ontario must obtain all of their coverage from private providers, meaning their quotes include more coverage, which results in a higher premium. 

Does car insurance go up after a comprehensive claim​?

While there’s no guarantee that your car insurance premium will increase after filing a comprehensive claim, there is a possibility, as is the case with any type of insurance claim. Why is this? Insurers are risk-averse, and every claim you file raises your perceived risk, which could lead to higher premiums.

While some circumstances necessitate filing a claim, there are others where you should weigh the cost of the damage against your deductible. If the cost of the damage is close to or less than your deductible, you may be better off paying out of pocket rather than going through your insurance, as it could result in a premium increase that costs you more in the end. 

What is a good comprehensive deductible?

A good car insurance deductible is one you can comfortably afford. However, a $500 deductible for comprehensive coverage is quite common in Canada. 

While you might be tempted to take on a higher comprehensive deductible (ex. $1,000) for the potential savings on your premium, remember that doing so increases your financial risk. Since you’ll be responsible for a larger amount out of pocket in the event of a claim, make sure you’re confident in your ability to cover that cost before opting for a higher deductible.

Do you need comprehensive car insurance?

Legally speaking, you don’t need comprehensive car insurance in Canada. That doesn’t mean it wouldn’t be beneficial – it just means it isn’t mandatory. Also, beyond the legal requirements, your lender or leasing company may state that you need comprehensive car insurance as part of their contract.

That being said, the things comprehensive coverage protects against, like theft, weather damage, or vandalism, can happen to anyone at any time. For some, the risk of bearing these unexpected costs might not feel comfortable, and paying a bit more for the peace of mind that comprehensive coverage provides may be worthwhile. Others may be comfortable shouldering this risk and choose to set aside the savings for a rainy day instead.

Ultimately, there’s no right or wrong answer here. Your decision should be based on your unique situation, risk tolerance, lifestyle, budget, and personal preferences. To help you decide, consider asking yourself the following questions. If you answer “yes” to most of these questions, you may need the type of coverage that comprehensive car insurance provides.

• Is your car new or relatively valuable?
• Do you own one of the most stolen cars in Canada? (Tip: Check this website to see if your car is on the list)
• Is your car financed or leased? Does your contract with your lender or leasing company have any requirements for comprehensive car insurance?
• Do you live in an area prone to extreme weather?
• Is your car regularly parked outside, where it’s more vulnerable to damage from the elements, theft, or vandalism?
• Do you live in an area with higher theft or vandalism rates? (Tip: Check if you live in one of these areas in Ontario or Quebec)
• Would covering the cost of car repairs or a total loss without insurance be a serious financial challenge/setback for you?
• Does the extra cost for comprehensive coverage seem worth it to you for the added peace of mind?

Next steps: Get comprehensive car insurance for less

If you decide that comprehensive coverage is the right choice but wonder whether or not you can afford to add it to your policy, YouSet can help you find the answer. In just four minutes, YouSet’s platform will automatically compare quotes from multiple insurers, apply exclusive discounts, and find you the best available price. From there, you can adjust coverages, modify limits, and customize your policy to ensure it meets your exact needs.

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