Explained: What Is Collision Auto Insurance What Does It Cover

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The decision to purchase car insurance brings many questions to your mind. You may have to check on the kind of potential perils that could damage your car. You then have to decide on choosing types of coverage for different kinds of perils. As per law, it is mandatory for motorists to purchase auto insurance in Ontario.

When buying car insurance, you may choose to buy only the mandatory cover. Or you could add optional coverage too. It is not cheap to buy collision coverage. The pricing for this coverage depends on various factors including the car and the driver. It is recommended to add collision coverage to the auto insurance when you finance or lease a vehicle. As you don’t own the car. The cost of replacing could be huge.

What Is Collision Coverage

Collision coverage is also known as upset coverage. This is not a mandatory coverage. You may add this coverage to your insurance policy. It will give additional protection to your car. When an object causes damage to the car it can be claimed under collision coverage. The object may be another vehicle or a trailer that is connected to another vehicle that is covered under your policy. This also includes any object on the ground, in or on the surface too.[1]

What Does Collision Cover

Collision

Any damages that occur due to an accident or impact with a stationary object come under collision coverage. If there are damages due to the vehicle rolling over then it can be covered under this insurance. It pays for the cost of repair or the value of replacing your car to the extent to which you are at fault.

What Is The Risk Of Not Having Collision

In case you choose not to add collision coverage to your car insurance policy you may not claim for the following types of scenarios. This is true when you had collision coverage on your policy and later decide to remove it from your policy.

  • If you are hit by another car that is covered by another insurance company that follows the no-fault rules by Ontario province.
  • In case you are found to be at fault in a collision, you may not be covered for the losses. In such a situation you may have to pay for the storage and towing fee if any too.
  • When your car is involved in hit and run accident involving a third party, then you may not be able to claim for the damages under your auto insurance.
  • When there is no other vehicle involved to cause damage to your car then you may not claim for such damage. As an example, if there is any damage caused when your car skids on ice and hits a pole or sidewalk, it may not be covered.

Also, there is less preference to get collision coverage as the car gets older. This is because the cost of collision coverage and paying for deductible may not add up to the actual worth of the old car.

 

[1]https://www.fsco.gov.on.ca/en/auto/brochures

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