What’s the difference between collision and comprehensive coverage?

Collision vs. comprehensive, at a glance:

Collision and comprehensive coverage work together to protect your car from many kinds of damage – so you won’t need to pay out-of-pocket to repair or replace your car.

Collision coverage

Collision coverage protects your car when you’re at-fault for an accident, such as:

• Your car hits another car
• Your car hits an object (like a road sign or a street light)
• Your car rolls over

If the accident is not your fault, however, the cost of the damage is covered through a different part of your policy, called Direct Compensation Property Damage (which is called the Direct Compensation Agreement in Quebec). If you live in Alberta, collision coverage also includes no-fault collisions. Learn more about the no-fault insurance system and how you’re covered.

Comprehensive coverage

Comprehensive coverage is a little different, because it protects your car from damage that’s caused from things other than an accident. This could be a rock hitting your windshield or a tree falling on your car during a storm. While comprehensive coverage can differ between insurers, here’s what it commonly covers you for:

• Your car is damaged by fire
• Your car is vandalized
• Your car is stolen
• Your car is damaged by a falling object
• Your car is damaged from a wind or hailstorm

How much are you covered for?

If you have an accident, your vehicle will be covered up to its actual cash value. The value of your car is determined by things like mileage, age, maintenance history and the purchase price the vehicle. As you’ll have got some use out of your car, you won’t be entitled to the amount you paid for it (similar to if you were to sell your car to someone else). If you have a new (or nearly new car), you may be able to get an extra coverage called a depreciation waiver. Therefore, you’re paid the replacement cost – meaning your car would be replaced up to its full value, with no deductions for wear and tear. Remember though, you’ll still need to cover the cost of your deductible.

Most people choose a collision and comprehensive coverage bundle to make sure they have coverage for most risks. However, they’re not your only 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 forgo physical damage coverage. In this case, you’d need to be able to afford any replacement or repair costs to your vehicle if something happens. Another example would be if you’re putting your vehicle in storage for the season, maybe you feel that you can remove collision and comprehensive coverage. Whatever your situation, consider all of your physical damage options to make the best choice for your needs.

Protect your car from just about everything with collision and comprehensive. Get a quote.