There are around 160,000 car accidents every year in Canada. When it comes to driving, even the safest drivers may find themselves in a collision accident that often results in expensive repairs. Some drivers will be forced to pay out of their pockets, while others can rely on auto insurance.
In this article, we’ll talk about collision car insurance, what it is, what it covers, and why it could be a helpful policy for you to have.
What is Collision Car Insurance?
Collision car insurance covers damages to your vehicle regardless of who is at fault. This is one of the most common types of car insurance. This type of insurance is extremely helpful in reducing your out-of-pocket expenses caused by a collision.
This type of insurance is not always exclusive to a “vehicle on vehicle” collision. Most collision car insurance also accepts damage from objects like poles, fences, trees, and even a house.
What Does Collision Insurance Cover?
Collision insurance usually covers the following, though it may vary by policy:
- Physical damage to your vehicle due to a collision with another vehicle
- Physical damage to your vehicle due to a collision with stationary objects
- Single-vehicle accidents like roll-overs and falling-over incidents
- If someone backs into your car, collision insurance may cover the damages
- May cover repair costs for minor damages sustained from everyday accidents (parallel parking, scratches)
What is Not Covered by Collision Insurance?
Collision car insurance generally doesn’t cover the following:
- Physical damage caused by a non-driving related incident (theft, vandalism)
- Physical damage caused to another person’s vehicle
- Physical damage due to natural disasters (flood, hail, fire)
- Medical bills and related costs (yours or the other driver’s)
- If someone borrowed your vehicle and ended up in a collision (though some insurers may consider covering this)
Who Needs Collision Insurance Coverage?
Canada does not require car owners to carry collision car insurance. However, if you want to be able to pay for repairs or a replacement vehicle after an accident, it’s highly recommended to get collision insurance.
It’s important to keep in mind that if you are unable to pay for damages yourself, the other driver’s liability car insurance will not cover all of the necessary expenses. That’s why It is a good idea to carry collision insurance even if you are not required by law.
If you do not have collision coverage and your car is damaged in an accident, you will be required to pay out-of-pocket for the damages or live without a vehicle until the expenses can be paid back through savings or other means.
Also, many auto lease policies and car financing may require you to sign up for collision insurance coverage. Make sure to double-check your terms and obligations so any car financing contracts won’t get void.
Collision Coverage vs. Comprehensive Coverage
Collision issuance is often mistaken to be part of comprehensive coverage, but they are two separate policies. While collision insurance deals with expenses caused by driving-related accidents, comprehensive car insurance covers damages due to non-collision factors like weather, fire, and thefts.
It’s often recommended that car owners consider getting both since the collision and comprehensive policies work together well.
How to Choose the Right Collision Car Insurance
As with all financial decisions, it is important to choose the right collision car insurance policy. To get started, here are some of the most important factors to consider when shopping for a new policy:
1. Coverage options
Some policies will only cover damages if you also have comprehensive coverage. Other policies allow you to drop the comprehensive coverage requirement once your car’s value is low enough.
If you’re buying a new car, it may be wise to wait until the loan is paid off before dropping a comprehensive coverage in case your vehicle is damaged in an accident between the time you buy it and pay off the loan.
2. Level of deductible
The higher your deductible, the lower your rates will be. However, if you do not have enough cash to cover a high deductible, you may want to consider paying higher rates to keep a lower deductible.
3. Deductible options
Some policies will only allow you to choose from a list of pre-determined deductibles. Others will allow you to increase or decrease your deductible depending on how likely it is that repairs will be needed.
In addition to collision car insurance, many insurers now offer a variety of add-ons such as roadside assistance and rental reimbursement. These options usually come with a fee but can be well worth it if you frequently find yourself needing them.
Collision car insurance can be a great way to protect your vehicle from physical damage. Not everyone is required by law to carry collision coverage, but the financial security and peace of mind it offers make it a worthy insurance to get.
Youngs Insurance Brokers Burlington are your expert car insurance brokers that offer high-risk auto insurance. If you’re looking for a trusted insurance provider, contact us today for a free quote from our team.