Do You Need Comprehensive & Collision Coverage?
While surely nobody enjoys paying for auto insurance coverage, it’s something that all drivers in Canada are required to have by law. In general, there are several different components that can make up a car insurance policy. These include:
- bodily injury coverage
- property damage protection
- under-insured/uninsured motorist protection
- comprehensive coverage
- collision coverage
While all Canadian drivers are required to carry at least minimum bodily injury and property damage protection, under-insured motorist protection, comprehensive coverage, and collision coverage are good things to have. In some cases, these types of coverage may also be a requirement. Read on to find out whether you need comprehensive and collision coverage.
What Are Comprehensive and Collision Coverage?
First, it’s a good idea to understand what these different coverage types entail. Essentially, collision coverage is meant to protect you from damages done to your vehicle by vandalism or even Mother Nature. For example, if your car is keyed or your windshield is shattered by falling hail, a comprehensive coverage policy will kick in and help you pay for the necessary repairs or replacement.
Collision coverage, on the other hand, is meant to help pay for damages your vehicle sustains in an accident. For instance, if you’re rear-ended by another vehicle, your collision policy can help pay for the necessary body work needed to repair the damage. In severe cases where it’d be cheaper to replace your car altogether than to repair it, your collision policy could even pay for your replacement vehicle.
When Do You Need this Coverage?
In general, if you’re the total owner of your car (that is, there aren’t any other lien holders on the title), you can decline comprehensive and collision coverage if you wish; all you’ll need to do is carry the required insurance minimums of bodily injury and property damage protection. However, if your car has any substantial value, it’s in your best interest to pay a little extra for the peace of mind that comes with this type of coverage.
Furthermore, if your vehicle is leased or financed (not entirely paid off), then you may be required to purchase comprehensive and collision coverage. Check with your lender to find out whether this is the case.
Nobody hopes that they’ll ever have to use their car insurance policies, but with as unpredictable as life can be, it’s never a bad idea to carry as much coverage as you can comfortably afford. If you don’t have comprehensive and collision coverage already, now may be a good time to at least request a quote from your car insurance company.