Collision auto insurance is a type of coverage that protects your vehicle in the event of an accident where your car collides with another vehicle or object. In Ontario, collision coverage is optional and can be added to your basic car insurance policy as an additional coverage.

If you have collision coverage, your insurance company will pay for the cost of repairing or replacing your vehicle, up to the limit of your coverage, regardless of who is at fault in the accident. However, you will need to pay a deductible before your insurance company will cover the remaining costs.

Collision auto insurance is important for drivers who want extra protection for their vehicle, especially if their car is new or valuable. It can also provide peace of mind knowing that you are protected in the event of an accident.

Is collision insurance mandatory in Ontario

No, collision insurance is not mandatory in Ontario. It is an optional type of auto insurance coverage that you can choose to add to your basic auto insurance policy.

In Ontario, the mandatory auto insurance coverage that all drivers are required to have by law includes:

• Third-Party Liability Coverage: This coverage provides protection if you are found legally responsible for injuring someone or causing damage to someone’s property while driving your vehicle.
• Accident Benefits Coverage: This coverage provides benefits to you and your passengers if you are injured in an auto accident, regardless of who is at fault.

However, while collision coverage is not mandatory, it can provide valuable protection for your vehicle in the event of an accident where you are at fault or in the event of a collision with an uninsured or underinsured driver. If you have a loan or lease on your vehicle, your lender may also require you to have collision coverage as a condition of your loan or lease agreement. It’s important to carefully consider your insurance needs and budget when deciding whether to add collision coverage to your auto insurance policy in Ontario.

What Is The Risk Of Not Having Collision Insurance

The risk of not having collision insurance in Ontario is that if you get into an accident where you are at fault, you will be responsible for paying for the damages to your vehicle out of your own pocket. This can be very costly, especially if your car is severely damaged and requires extensive repairs or needs to be replaced.

Additionally, if you have a car loan or lease, your lender may require you to have collision coverage to protect their financial interest in the vehicle. Without collision coverage, you could be in breach of your loan or lease agreement, which could have serious consequences.

Furthermore, if you get into an accident with an uninsured or underinsured driver, you may not be able to recover the full cost of the damages to your vehicle without collision coverage. This could leave you with a financial burden that could take a long time to recover from.

Overall, not having collision insurance in Ontario can be a significant financial risk, and it is important to carefully consider your options and choose the coverage that is right for you and your vehicle.

Collision vs comprehensive coverage in Ontario

Collision and comprehensive coverage are both optional types of coverage that can be added to your basic auto insurance policy in Ontario.

Collision coverage typically covers damages to your vehicle resulting from a collision with another vehicle or object, regardless of who is at fault in the accident. This coverage pays for the cost of repairing or replacing your vehicle, up to the limit of your coverage, after you pay your deductible. Collision coverage is designed to cover damages resulting from a collision, while comprehensive coverage is designed to cover damages from non-collision incidents.

Comprehensive coverage, on the other hand, covers damages to your vehicle that are not caused by a collision, such as theft, vandalism, natural disasters, or hitting an animal. This coverage can also help cover the cost of repairs or replacement of your vehicle, subject to a deductible.

In general, collision coverage is typically more expensive than comprehensive coverage, as collisions are more common than many of the incidents covered by comprehensive coverage. However, the cost of both types of coverage will depend on a variety of factors, including the make and model of your vehicle, your driving record, and the deductible you choose.

It’s important to carefully consider your insurance needs and budget when deciding whether to add collision and/or comprehensive coverage to your auto insurance policy in Ontario.

What is difference between collision vs full coverage?

Collision coverage is a type of coverage that pays for damages to your vehicle resulting from a collision with another vehicle or object, regardless of who is at fault. It is often sold as part of a larger auto insurance policy, and you may be required to pay a deductible before the coverage kicks in.

Full coverage, on the other hand, is not a specific type of coverage, but rather a term that is used to describe an auto insurance policy that includes several different types of coverage. In addition to collision coverage, a full coverage policy may also include liability coverage, which pays for damages and injuries you may cause to other drivers, passengers or property, as well as comprehensive coverage, which pays for non-collision incidents like theft, vandalism, and natural disasters.

In other words, collision coverage is just one component of full coverage auto insurance. If you have full coverage, you’ll have broader protection for your vehicle, yourself, and other drivers, passengers, and property, beyond just collisions. However, the specifics of what’s included in “full coverage” can vary depending on the insurance company, so it’s important to review the policy documents and understand exactly what is covered.

What is included in collision?

Collision coverage typically covers damages to your vehicle resulting from a collision with another vehicle or object, regardless of who is at fault in the accident. This coverage pays for the cost of repairing or replacing your vehicle, up to the limit of your coverage, after you pay your deductible.

Collision coverage typically includes damages resulting from:

• A collision with another vehicle, such as a car, truck, or motorcycle
• A collision with an object, such as a fence, tree, or guardrail
• A single-vehicle accident, where your vehicle collides with a stationary object, like a telephone pole or a wall.

However, it’s important to note that collision coverage may not cover damages resulting from certain incidents, such as:

• Normal wear and tear of your vehicle
• Mechanical breakdowns or malfunctions
• Damage from flood, fire, or theft (this is typically covered by comprehensive coverage)

The specifics of what is covered by collision coverage may vary depending on your insurance policy, so it’s important to review your policy documents and speak with your insurance agent to understand exactly what is included.

No collision insurance not at-fault in Ontario

If you don’t have collision insurance and you are not at-fault in an accident in Ontario, the at-fault driver’s insurance company is responsible for covering the cost of repairs to your vehicle. However, the process of filing a claim and receiving compensation may take some time, and there is no guarantee that the at-fault driver’s insurance company will cover the full cost of the repairs.

If you have collision coverage, you can choose to file a claim with your own insurance company instead of going through the at-fault driver’s insurance company. This can often result in a faster and smoother claims process, and you will only need to pay your deductible instead of the full cost of repairs.

It’s important to note that if you have a loan or lease on your vehicle, your lender may require you to have collision coverage as a condition of your loan or lease agreement. If you don’t have collision coverage and your vehicle is damaged in an accident, you may be in breach of your loan or lease agreement, which could have serious consequences.

Collision Insurance Facts

Here are some important facts to know about collision insurance:

1. Collision insurance is an optional type of auto insurance coverage that can be added to your basic auto insurance policy in most provinces, including Ontario.
2. Collision insurance typically covers damages to your vehicle resulting from a collision with another vehicle or object, regardless of who is at fault in the accident.
3. If you have a loan or lease on your vehicle, your lender may require you to have collision coverage as a condition of your loan or lease agreement.
4. When you purchase collision insurance, you will be required to choose a deductible, which is the amount you will need to pay out of pocket before your insurance company covers the remaining costs.
5. The cost of collision insurance can vary depending on a variety of factors, including the make and model of your vehicle, your driving record, and the deductible you choose.
6. If you are at fault in an accident and you have collision insurance, your insurance company will pay for the cost of repairing or replacing your vehicle, up to the limit of your coverage, after you pay your deductible.
7. If you are not at fault in an accident and you don’t have collision insurance, the at-fault driver’s insurance company is responsible for covering the cost of repairs to your vehicle.
8. Adding collision insurance to your auto insurance policy can provide valuable protection for your vehicle, especially if your car is new or valuable. However, it’s important to carefully consider your insurance needs and budget when deciding whether to add collision coverage to your policy.

Collision Insurance FAQs

Here are some frequently asked questions about collision insurance:

1. What is collision insurance?

Collision insurance is a type of auto insurance coverage that covers damages to your vehicle resulting from a collision with another vehicle or object, regardless of who is at fault in the accident. It is an optional coverage that can be added to your basic auto insurance policy.

2. What does collision insurance cover?

Collision insurance typically covers damages to your vehicle resulting from a collision with another vehicle or object, as well as damages resulting from a single-vehicle accident where your vehicle collides with a stationary object, like a telephone pole or a wall.

3. Do I need collision insurance?

Collision insurance is not mandatory in most provinces, including Ontario. However, if you have a loan or lease on your vehicle, your lender may require you to have collision coverage as a condition of your loan or lease agreement.

4. What is a deductible?

A deductible is the amount you will need to pay out of pocket before your insurance company covers the remaining costs of a claim. When you purchase collision insurance, you will be required to choose a deductible.

5. How much does collision insurance cost?

The cost of collision insurance can vary depending on a variety of factors, including the make and model of your vehicle, your driving record, and the deductible you choose.

6. What happens if I am at fault in an accident and have collision insurance?

If you are at fault in an accident and have collision insurance, your insurance company will pay for the cost of repairing or replacing your vehicle, up to the limit of your coverage, after you pay your deductible.

7. What happens if I am not at fault in an accident and don’t have collision insurance?

If you are not at fault in an accident and don’t have collision insurance, the at-fault driver’s insurance company is responsible for covering the cost of repairs to your vehicle.

8. Should I choose a high or low deductible for my collision insurance?

The deductible you choose for your collision insurance will depend on your budget and how much you are willing to pay out of pocket in the event of an accident. A higher deductible will result in a lower monthly premium, but you will need to pay more out of pocket before your insurance coverage kicks in. Conversely, a lower deductible will result in a higher monthly premium, but you will pay less out of pocket in the event of an accident.

9. What is the difference between collision and comprehensive insurance?

Collision insurance covers damages to your vehicle resulting from a collision with another vehicle or object, while comprehensive insurance covers damages to your vehicle that are not caused by a collision, such as theft, vandalism, natural disasters, or hitting an animal.

10. Can I add collision insurance to my policy at any time?

Yes, you can add collision insurance to your policy at any time, subject to your insurance company’s underwriting guidelines. However, if you add collision insurance to your policy after an accident has occurred, the accident will not be covered under the new coverage.

11. Will collision insurance cover the full cost of repairs or replacement?

Collision insurance will cover the cost of repairing or replacing your vehicle up to the limit of your coverage, after you pay your deductible. If the cost of repairs or replacement exceeds the limit of your coverage, you will be responsible for paying the remaining costs.

12. What happens if my vehicle is totaled in an accident?

If your vehicle is totaled in an accident, meaning that the cost of repairing the vehicle exceeds its value, your insurance company will pay you the actual cash value of your vehicle, up to the limit of your collision coverage, after you pay your deductible.

13. How do I file a collision insurance claim?

To file a collision insurance claim, you will need to contact your insurance company as soon as possible after the accident. You will need to provide details about the accident, including the location, date, and time of the accident, and any relevant information about the other driver or vehicle involved. Your insurance company will guide you through the claims process and provide instructions for getting your vehicle repaired or replaced.

14. Can I cancel my collision insurance?

Yes, you can cancel your collision insurance at any time, but you may be subject to a cancellation fee or penalty. Before canceling your collision insurance, it’s important to consider your insurance needs and budget, and to make sure you have alternative coverage in place if necessary.

15. Is collision insurance the same as gap insurance?

No, collision insurance and gap insurance are two different types of coverage. Collision insurance covers damages to your vehicle resulting from a collision, while gap insurance covers the difference between the actual cash value of your vehicle and the amount you owe on your loan or lease if your vehicle is totaled.

16. Can I use collision insurance to cover damages caused by natural disasters or vandalism?

No, collision insurance only covers damages resulting from a collision with another vehicle or object. Damages caused by natural disasters or vandalism are typically covered by comprehensive insurance.

17. Do I need collision insurance if I have an older car?

The decision to purchase collision insurance for an older car will depend on a variety of factors, including the value of your vehicle, your driving record, and your budget. If your car is older and has a low resale value, it may not make sense to purchase collision insurance, as the cost of the coverage may exceed the potential payout in the event of an accident. However, if you have a loan or lease on your vehicle, your lender may require you to have collision coverage as a condition of your loan or lease agreement.

18. What happens if I have an accident and don’t have collision insurance?

If you are at fault in an accident and don’t have collision insurance, you will be responsible for paying for the cost of repairing or replacing your vehicle out of pocket. If you are not at fault in the accident, the at-fault driver’s insurance company may be responsible for covering the cost of repairs or replacement.

19. How can I save money on collision insurance?

You can potentially save money on collision insurance by choosing a higher deductible, maintaining a good driving record, and driving a vehicle that is less expensive to repair or replace. You may also be eligible for discounts on your insurance premiums if you bundle your auto insurance with other types of insurance, such as homeowners or renters insurance.

20. How often should I review my collision insurance coverage?

It’s a good idea to review your collision insurance coverage periodically, especially if there have been changes to your vehicle, driving habits, or lifestyle. You should also review your coverage if you have had an accident or if you have received a ticket or citation for a driving violation. It’s important to make sure that you have the right coverage for your needs and budget, and to make adjustments as necessary.