Stay informed on the different types of auto coverages available in Ontario, Canada. This guide covers collision, comprehensive, and all perils insurance. I will also include the benefits and drawbacks of each coverage, and how to choose the right option for your vehicle. From mandatory coverage to added protection, learn how to protect your vehicle and your finances. Read further with this comprehensive guide on auto insurance in Ontario, Canada.
Auto insurance is an essential purchase for every driver in Ontario, Canada. It provides financial protection in the event of an accident, and is required by law. When it comes to physical protection for auto insurance, there are two main types of coverage: collision and comprehensive. In this guide, we’ll explore what these coverages are, how they differ, and why you may want to consider them when purchasing auto insurance.
Collision coverage is a type of auto insurance that covers the cost of repairs or replacement of your vehicle in the event of a collision with another vehicle or object. This includes accidents such as a car crash, hitting a tree or backing into a pole. Collision coverage is typically mandatory if you have a car loan or lease, but it is not required by law in Ontario, Canada.
Comprehensive coverage is another type of auto insurance that covers the cost of repairs or replacement of your vehicle in the event of non-collision related incidents. This includes events such as theft, vandalism, fire, or natural disasters. Comprehensive coverage is not mandatory by law in Ontario, Canada, but it is highly recommended for those who want to protect their vehicle from unforeseen events. Similar to collision coverage, it will also be required if you lease or finance your vehicle.
When purchasing auto insurance, you have the option to choose between collision coverage and comprehensive coverage or to bundle them together. Bundling them together can save you money in the long run, but it is important to consider your budget and the value of your vehicle. It is also important to note that in some cases, the coverage limit may not be sufficient to cover the full cost of repairs or replacement.
All perils coverage is a great option for those who want to ensure that their vehicle is protected against all types of risks, regardless of whether they are collision or non-collision related. It can also be beneficial for drivers who live in areas that are prone to natural disasters or have a high theft rate.
It is important to note that all perils coverage is generally more expensive than a standard comprehensive policy, but in some cases it may be worth the extra cost for the added protection it provides. Drivers in Ontario, Canada should speak with their insurance broker, like James Inwood. This can help to determine if all perils coverage is the right choice for you and if it fits in your budget.
In conclusion, collision, comprehensive and all perils coverage are three types of auto insurance that provide financial protection in the event of an accident or non-collision related incidents. Collision coverage is typically mandatory if you have a car loan or lease, along with comprehensive coverage which is required by lenders. Drivers in Ontario, Canada have the option to bundle them together or choose one of them. It is important to consider your budget, the value of your vehicle, and the coverage limit when purchasing auto insurance.
If you are interested in learning more about other auto insurance coverages and options we will be writing more about the different options in blogs to come. For now please send a quote request, call or email James for a personalized option today.
James Inwood is a member of Canadian Insurance Brokers Inc. CIBI operates across Canada with more than 40 licensed brokers and is completely independent so our advice is always objective. Representing 14 insurance carriers on the personal side and over 20 insurance providers on the commercial side helps give my clients clear choice and competitive pricing.