What is comprehensive coverage?

Comprehensive coverage protects your car from damage that’s caused by certain things other than a collision with another vehicle or object. Think of things that are usually out of your control.

Here’s what’s typically covered:

• Theft or attempted theft
• Vandalism or civil disobedience, such as a riot
• Weather and natural disasters (floods or lightning from thunderstorms, hurricanes, tornadoes)
• Hail
• Falling objects (like tree branches)
• Flying objects (like rocks or gravel)
• Fire or explosions
• Earthquakes

Collision vs. comprehensive insurance: which is right for you?

Choosing between comprehensive vs. collision insurance coverage can be confusing, but understanding what each covers, your budget and your car's value will help you pick the right coverage. Comparing car insurance doesn’t have to be complicated, so let's find the best protection for your wheels:

Why collision insurance?

Drivers choose collision coverage to help them feel safe and protected on the road, because you never know what unexpected accident might be around the corner. Knowing you're covered, even if that accident is your fault, removes a lot of stress. It's especially useful if your car is newer or has a high value. Repair costs can quickly add up, and collision insurance helps you avoid a huge financial burden.

Even if you're a careful driver, accidents happen. A new driver might run a red light, or bad weather could cause you to lose control. Collision coverage protects you in these unexpected situations. Think of it like a safety net for your car!

Why comprehensive insurance?

While comprehensive car insurance costs more than just basic coverage, it’s good for peace of mind when it comes to things other than collisions. Imagine a hailstorm denting your car. Without comprehensive, you'd pay for repairs out-of-pocket. With it, your insurance helps cover the cost after your deductible. 

It's a good choice if you have a newer or more expensive car. Repairing or replacing it would be a big financial hit. Comprehensive insurance coverage also makes sense if you live in an area with high rates of theft or vandalism, or where severe weather is common.

Do I need both collision and comprehensive coverage?

Most people choose to have both so they don’t end up paying an arm and a leg out of pocket for repairs. After all, you never know when something could happen. It’s always better to err on the side of caution!

But, there are other options when it comes to physical damage coverage. Do you have an older vehicle? It’s common for people with older cars, or a car that’s fully paid off, to skip physical damage coverage. But – you need to make sure you can afford any replacement or repair costs out-of-pocket if something happens.

Another example could be if you’re storing your vehicle for the season. Whether you have a luxury car or a more basic model, it’s highly recommended to keep comprehensive insurance if you’re storing your car. This protects it even though it’s not on the road from things like theft, or if it’s damaged from something like a fire. But, you might consider temporarily removing collision (although if you live in Quebec, having comprehensive only isn’t allowed.) Since each situation is unique, it’s best to get in touch with your insurer to make the best decision based on your needs.

Tip: Curious how each Canadian province handles car insurance? Find out how auto insurance differs between them. From coverages to cost to how it’s managed, no two are alike!

How to choose the best insurance coverage

Choosing between collision and comprehensive car insurance depends on a few things. For one, your car's value is key. If it's older and worth less than a few thousand dollars, collision coverage might not be worth the cost. Repairing it could be cheaper than your deductible and premiums combined.

Also, think about your driving habits and location. If you live in a high-traffic area or frequently drive long distances, your accident risk is higher, making collision more important. If your area is prone to theft, hail, or flooding, comprehensive becomes more valuable.

Finally, compare prices. Get quotes for both types of coverage and see how they fit your budget. If comprehensive is only slightly more expensive, it might be worth the extra peace of mind. Balancing cost with your car’s value and your risk factors will help you decide what’s best for you.

Collision vs. comprehensive coverage FAQs

Do I need comprehensive coverage if my car is in storage?

Comprehensive coverage protects your stored car from things like theft, vandalism, or fire, even if you're not driving it. So, while it's not legally required like liability insurance usually is, it's a good idea if you want your car protected. Whether it's worth the cost depends on your car's value and your personal risk tolerance.

Is collision coverage needed if I lease my car?

Yes, collision coverage is typically required for leased vehicles. It protects you and the leasing company from costs associated with damage to the car. (It’s usually needed for financed vehicles as well.)

How do I know if I need to update my car insurance policy?

You should review your car insurance if your car's value increases significantly, making higher coverage worthwhile. You should definitely consider increasing coverage if you begin parking in a higher-risk area, like a busy city street. Plus, if your driving habits change (for example, if you get a new job that’s going to require a longer daily commute), updating your policy may be necessary.

Hit the road with confidence

No matter the situation, if you’re thinking about changing or removing coverages it’s a good idea to talk to your insurer first to be sure you’re making the right move for your needs. The most important thing is having the right type of auto insurance for you and your vehicle. At Sonnet, we’re always happy to help answer any questions you have about your policy with us.