Auto Insurance 101: What is perils coverage and why does it matter?
Interior of car protected with perils coverage

Simplifying your physical damage options.

Confused when it comes to choosing auto insurance coverage? We can help with that.

Physical damage is just one key part of your policy – but with so many jargon-filled options, it quickly gets confusing.

Here’s a simple breakdown of your physical damage options with a few handy tips along the way.

Collision – Your Fault

Accidents happen. The good news is, even if you’re at fault, this will cover the damage to your vehicle.

Collision – Not Your Fault

Accident not your fault? This covers damage to your vehicle and its contents. Your insurer will even set you up with a rental vehicle. Also known as Direct Compensation Property Damage.

Heads Up! In Quebec, this is covered under Liability coverage. The change to no fault collision in Alberta takes effect on January 1, 2022.

TIP: Most people choose a Collision and Comprehensive coverage bundle since it protects you from the majority of risks.


Rock hit your windshield? Someone keyed your car? Don’t worry this has your vehicle covered for damage from things like falling objects, vandalism, fire, theft, lightning, windstorm and earthquake.

TIP: Storing your vehicle or otherwise not driving it? This could be the coverage you’re looking for.

All Perils

You’re covered for everything under Collision and Comprehensive. Plus, if your vehicle is stolen by an employee, someone making repairs or by someone who lives in your home, your insurer will cover the loss or damage caused.

Specified Perils

This covers damage to your vehicle caused by fire, lightning, windstorm or earthquake. What makes this different from Comprehensive coverage? It won’t cover damage from vandalism or falling objects here.

TIP: An example of a “falling object” is if a nearby tree falls on your vehicle during a storm.

No Physical Damage Coverage

Removing Collision and Comprehensive coverage from your vehicle means you won’t be covered for damage to your vehicle caused by an at-fault accident. You’ll also not be covered for damage caused by falling objects, vandalism, fire, theft, lightning, windstorms or earthquakes.

TIP: Some people choose this option if they have an older vehicle or one that’s completely paid off. Just remember that you’ll need to be able to afford the costs to repair/replace your vehicle if something happens. If you have a lease or loan on your car, this usually isn’t an option for you.

We hope that helped take some of the confusion out of perils coverage. Now you should be ready to make a smart choice for your vehicle’s physical damage coverage.

Coverage your car’s always wanted at a competitive price.