To legally drive a car in Canada, you need to have insurance. But not all car insurance coverage is created equal. Standard auto insurance is the minimum level of coverage that you're required to have by law to drive a car. Depending on your province, that may include Personal Liability, Accident Benefits, Direct Compensation and Property Damage, and Uninsured and Unidentified Automobile Coverage. Optional insurance on the other hand, offers add-ons for broader coverage. This is additional insurance coverage that you can choose to purchase based on your needs. Optional auto insurance coverage can include Specified Perils, Collision or Upset Insurance, Comprehensive Insurance, or All Perils. Of course, opting for mandatory coverage only will give you a cheaper car insurance quote.
Collision coverage insures your vehicle against damages that may result if your car comes into contact with another vehicle or object, like in an at-fault accident or a hit and run. Comprehensive coverage protects your car from loss or damage from other non-Collision related claims, such as (but not limited to) fire, vandalism, and damage caused by hail. With both coverage options, you'll need to pay your deductible to repair or replace your car when you submit a covered claim – but won't need to pay the full cost to fix or replace your vehicle. Your insurance coverage will kick in to take care of the rest, as outlined in your policy.
If you own your vehicle outright (versus leasing or financing it), Collision and Comprehensive coverage are optional. However, removing these or other optional coverages from your insurance policy could end up costing you more money out of pocket. If something happens to your vehicle that's not included under your mandatory coverage and you don't have additional coverage, you'd be responsible for replacing or repairing your vehicle without help from your insurance company.
When comparing car insurance quotes, it's important to consider your financial situation as well as the value of your vehicle. If you wouldn't be able to repair or replace your car without putting a strain on your finances, you may want to consider paying the extra premiums to include Collision and Comprehensive coverage options in your car insurance policy.
A TD Insurance advisor can help you choose the car insurance that's right for you, so you can hit the road feeling confident in your coverage.