{"id":7313,"date":"2024-11-21T05:01:05","date_gmt":"2024-11-21T05:01:05","guid":{"rendered":"https:\/\/youset.ca\/?p=7313"},"modified":"2026-03-16T12:11:20","modified_gmt":"2026-03-16T12:11:20","slug":"what-is-collision-coverage","status":"publish","type":"post","link":"https:\/\/youset.ca\/en\/blog\/what-is-collision-coverage\/","title":{"rendered":"What is Collision Coverage and What Does It Cover?"},"content":{"rendered":"\n

It\u2019s a common misconception that <\/span>buying car insurance<\/span><\/a> means you\u2019re fully protected from all potential accidents. You might assume you\u2019ll be covered whether you rear-end someone or back into a telephone pole, but the reality is that standard policies often have limitations. <\/span><\/p>\n\n\n\n

To ensure you\u2019re adequately protected in collisions, regardless of fault, you often need additional types of coverage<\/a>, such as collision coverage.<\/span> <\/p>\n\n\n\n

If this is something you\u2019re currently thinking about adding to your policy, continue reading this article as it answers the key questions you\u2019re likely to have, including what collision coverage covers, who can benefit from it, and how it differs from comprehensive car coverage.<\/span><\/p>\n\n\n\n\t

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Key takeaways<\/h3>\n\t\t\t\t\t\t\t\t\t\t

Collision coverage (also known as upset coverage) helps pay for repairs to your vehicle after a collision. In most provinces, it isn\u2019t mandatory or automatically included in car insurance policies, but if your vehicle is leased or financed, your lender will typically require it.\u00a0<\/span><\/p>\n<\/div>\n\t\t\t\t\t<\/div>\n\t<\/section>\n\n\n\n\n\n\n\n\n\n\n

What is collision coverage?<\/h2>\n\n\n\n

Collision coverage, also referred to as upset coverage, provides financial compensation for repairs to your vehicle after a collision. If your car is totalled and cannot be repaired, it can also help cover the cost of a replacement, regardless of whether you\u2019re at fault or not. <\/span> <\/p>\n\n\n\n

In provinces like Ontario and Quebec, collision coverage is not mandatory<\/a> and is not automatically included in your policy. This means that you get to choose whether you want to pay extra for the added protection.<\/span> <\/p>\n\n\n\n

However, if your car is leased or financed, your lender will likely require collision coverage to safeguard their investment in case your vehicle is damaged or totalled. For those who own their car outright, meaning it\u2019s fully paid off, this coverage remains optional.<\/span>  <\/p>\n\n\n\n

What does collision coverage cover?<\/h2>\n\n\n\n

Mandatory types of car insurance<\/span>, such as<\/span> <\/span>third-party liability<\/span><\/a>, are crucial if you ever injure another person or damage their car in an accident. However, they fall short when it comes to protecting your own vehicle. If you\u2019re a driver who feels that this is equally important coverage to have, collision coverage is the answer as it covers the following types of situations:<\/span><\/p>\n\n\n\n