Comprehensive car insurance covers damages to a vehicle that occur neither due to the owner’s fault nor because of any third party. In other words, it provides cover for everything that happens to the car besides the cover for accidents. The policy typically covers situations such as vandalism, fires, theft, and extreme weather conditions.
If you are looking for a reliable insurance brokerage, feel free to contact the team at Surex. You can compare comprehensive car insurance costs from various insurers and choose the best according to your needs.
Comprehensive car insurance – What is it and how does it work?
Before getting into the question, “What does comprehensive car insurance cover in auto insurance?”, let’s learn what exactly it is.
This type of auto insurance is designed to work in combination with collision insurance. It allows the individual to make car insurance claims to cover the repair costs. The auto insurance may also benefit the person with repair estimates settlement which can even exceed the vehicle’s value.
A unique thing about SR22 insurance online is that it’s optional, and there is no legal requirement to have it. However, you’ll pay out of pocket if the vehicle gets stolen or vandalized. Keep reading to dig deeper into what’s covered in this insurance and what’s not.
What does comprehensive auto insurance cover in Canada?
As mentioned above, Comprehensive car insurance works like additional coverage. It protects the car from damage or loss which isn’t caused by incidents related to a collision. Are you wondering, “What does comprehensive cover in auto insurance?”. Continue reading to learn more.
- A cracked windshield or shattered or broken windows
- Civil disturbances
- Damage caused as a consequence of falling objects or trees
- Car theft or attempted theft
- Fire explosions and damage
- Weather-related damage or due to natural disasters such as windstorms, lightning, rising water, hail, fire, or earthquakes
- Damage from wildlife collision
Note – Almost all insurers offer comprehensive coverage for the hazards listed above. But still, it is advised to consult your insurance company to get a clear idea of the particulars covered in your insurance policy.
If comprehensive coverage is already included in your auto insurance, but you aren’t sure of the hazards covered in it, then check the policy’s “Specified Perils” to find out about the car damages covered under it.
What damages are not covered by comprehensive auto insurance?
Comprehensive auto insurance policies don’t provide cover for the following –
- Damages caused to the car due to accidents
- Loss of income or medical expenses an accident
- Accidental damage caused to a third party due to the driver’s fault
- Loss of income or medical expenses for another individual after an accident
- Theft attempted by a household member
- Accident of rental car
Is it mandatory to get comprehensive coverage?
If you drive a car in Canada, it is mandatory to get third-party liability insurance. However, there is no legal requirement to get a comprehensive insurance policy. However, if you have a financed or leased car, the borrower may ask you to get a collision or comprehensive coverage.
It’s optional if you have made full payment of your purchase or have paid off all the installments. The policyholder can opt out of comprehensive coverage on an active insurance policy anytime.
How to determine whether to opt in or out of comprehensive coverage?
If you are confused about whether or not to add comprehensive car insurance to your policy, you can determine it following the below-listed considerations.
- Do you have sufficient money to replace or repair your car in case it’s stolen or damaged?
- The car’s value is according to its condition and age.
If you cannot bear your car’s replacement or repair cost when it’s damaged (due to non-collision reasons), then comprehensive coverage will come to your rescue.
Eligibility for comprehensive car insurance purchase
The terms and conditions of eligibility vary from one insurer to another. But certain essential factors are applicable for comprehensive coverage eligibility in general, including the following –
- The car’s age – if the vehicle added to an individual’s policy is more than 15 years old, it will be only eligible for comprehensive car insurance if it’s been appraised in the past 12 months.
- Value of the vehicle – it’s calculated by factoring in car type (driven by the policyholder) and its age. An older car would naturally be valued less owing to higher depreciation.
- Condition of the car – the insurer considers whether or not the vehicle has undergone any modifications for aesthetic purposes or customization or whether it has any damaged parts.
How much will comprehensive coverage cost?
The cost of auto insurance coverage depends on the insurer and the benefits offered by them. Other determining factors include the residential city or province of the person, deductible amount, and premium value. Generally, comprehensive coverage comes as an add-on to the insurance policy. Hence, the insurer charges extra for the same (as an additional cost).
Comprehensive insurance is subject to deductibles. The premium cost increases if the deductible amount is small. But if you sign up for a higher deductible value, the premium cost will be low. However, there will be a risk of paying a high amount from your pocket for the repair of the car or replacing any of its parts. In other words, the overall price of an insurance policy will also rise.
For example, if a tree branch falls on your car due to a bad storm. Consequently, there are damages up to $1,000, and the deductible amount is $500. You’ll have to bear $500, and the insurance agency will provide $1500 as cover.
What does comprehensive car insurance cover? — Endnote
You now know the answer to the question, “What does comprehensive car insurance cover?”.
You may skip adding this insurance to your policy when purchasing a new vehicle or renewing your auto insurance. If necessary, you can add it to your policy later. Irrespective of what you choose to do, make sure to get a quote and collect all the details required to get the best fit for your needs.