Your coverage will vary depending on the situation, the type of coverage included in your auto insurance policy and the province you live in. Let's consider some examples:
Example 1: Someone hit your parked car and you've exchanged information.
In this instance, you won't need to have optional physical damage coverage on your policy. In most provinces (AB, ON, QC, NB, NS, NFLD, PEI), your base car insurance will include Direct Compensation Property Damage (DCPD). This covers physical damages to your car that resulted from a not at-fault accident under what's referred to as a 'No-Fault' insurance system, meaning you deal directly with your insurer to resolve your claim.
Example 2: Someone hit your parked car and left.
Unfortunately, this is classified as a Hit and Run. You'll need to have Collision or Upset coverage or All Perils coverage to be covered in a Hit and Run incident, or Comprehensive coverage if you reside in Alberta. These coverage options will cover any physical damages to your vehicle. Keep in mind that your deductible will need to be paid when filing a claim. If, however, you're an existing TD Insurance customer and you've added our Grand Touring Solution® to your policy, you may be eligible to have your deductible waived, so long as the Hit and Run is reported to the police within 24 hours of it happening. Keep in mind that the 24-hour rule doesn't apply if you're reporting a Hit and Run in Quebec, although you should file a police report and notify your insurer as soon as possible.
Example 3: You've accidentally hit someone else's car and exchanged information with them.
When you're considered at fault for the accident, you'll need to have Collision or Upset coverage, or All Perils coverage to cover the repairs for your own vehicle. Again, when filing a claim, you'll be required to pay your deductible amount first before the rest of your insurance kicks in. And similarly to how a road accident claim works, if you're the one responsible for the accident, you may see a slight change in your premium. However, if you have accident forgiveness coverage on your policy, your first at-fault accident won't affect your premium at renewal. If, for whatever reason you don't have the right coverage, you'll be responsible for paying the damages to your own vehicle out of pocket. The damages to the other vehicle, on the other hand, will be covered by DCPD on their policy, as outlined in the first example.
You'll notice it pays to have the right coverage to be protected no matter what happens to you and your car, both on the road or in the lot. If you're looking for the right coverage for all your needs, get a quote in minutes with TD Insurance.