In Canada, “full coverage” car insurance typically refers to a combination of various types of coverage that offer more comprehensive protection than just the basic, mandatory coverage required by provincial and territorial laws. However, the term “full coverage” isn’t officially defined in the insurance industry, so it might differ among providers. Here’s a breakdown of the primary components:

1. Mandatory Third-Party Liability Coverage:
   • Protects you if someone else is killed or injured, or their property is damaged.
   • It will pay for legitimate claims against you up to the limit of your coverage, and pay for the cost of settling the claims within those limits.
   • Each province/territory has a minimum required amount, but many people opt for more than the minimum.
2. Accident Benefits/Bodily Injury:
   • Provides benefits if you, your passengers, or pedestrians are injured or killed in an automobile accident.
   • This can cover medical expenses, rehabilitation, funeral expenses, and more.
3. Uninsured/Underinsured Motorist Protection:
   • Protects you if you’re involved in an accident with an uninsured or underinsured driver or if you’re a victim of a hit-and-run.
4. Direct Compensation – Property Damage (DCPD):
   • Only available in some provinces.
   • If another driver is at fault for damaging your vehicle, you’d claim through your own insurance company instead of the other driver’s company.
5. Collision:
   • Covers the cost of repair or replacement of your vehicle if it’s damaged in an accident, regardless of who is at fault.
   • There’s usually a deductible involved.
6. Comprehensive:
   • Covers your vehicle for damages not resulting from a collision. This includes things like theft, vandalism, natural disasters, falling objects, fire, and more.
   • As with collision coverage, there’s usually a deductible.
7. Specified Perils:
   • Only covers perils specifically named in the policy, such as theft, fire, or natural disasters.
8. All Perils:
   • Combines both Collision and Comprehensive coverages and offers additional protection.
9. Rental Vehicle Coverage:
   • Provides coverage if you rent a vehicle or need a rental car after an accident.
10. Depreciation Waiver or New Vehicle Protection:

• If you have a newer vehicle, this can protect against depreciation in the event of a total loss.

It’s always essential to understand your policy and discuss your needs with an insurance broker or agent. Ensure you’re adequately covered and understand any limitations or exclusions.

Each province in Canada has its own set of requirements for auto insurance, so it’s essential to familiarize yourself with the rules in your particular province or territory.

Each province and territory in Canada has its own regulations and requirements for auto insurance. Here’s a brief province-by-province overview:

1. British Columbia (BC)
   • Insurance is provided through the Insurance Corporation of British Columbia (ICBC).
   • Mandatory coverage includes third-party liability, underinsured motorist protection, and accident benefits.
   • Optional coverages include collision, comprehensive, specified perils, and loss of use.
2. Alberta
   • Private insurers provide auto insurance.
   • Mandatory coverage includes third-party liability and accident benefits.
   • Optional coverages include collision, comprehensive, and specified perils.
3. Saskatchewan
   • Insurance is mainly provided through Saskatchewan Government Insurance (SGI).
   • Mandatory coverage includes third-party liability, personal injury benefits, and uninsured motorist protection.
   • Optional coverages are available for reduced deductibles, loss of use, and more.
4. Manitoba
   • Insurance is provided through Manitoba Public Insurance (MPI).
   • Mandatory coverage includes third-party liability, personal injury benefits, and uninsured motorist protection.
   • Optional coverages are available, including increased third-party liability, decreased deductibles, and more.
5. Ontario
   • Private insurers provide auto insurance.
   • Mandatory coverage includes third-party liability, accident benefits, uninsured automobile coverage, and Direct Compensation – Property Damage (DCPD).
   • Optional coverages include collision, comprehensive, and many additional endorsements.
6. Quebec
   • A hybrid system: The Société de l’assurance automobile du Québec (SAAQ) covers bodily injuries, while private insurers cover property damage.
   • Mandatory coverage includes third-party liability (for property damage) and the public insurance plan for bodily injury.
   • Optional coverages for property damage include collision and comprehensive.
7. New Brunswick
   • Private insurers provide auto insurance.
   • Mandatory coverage includes third-party liability, accident benefits, uninsured automobile coverage, and DCPD.
   • Optional coverages are also available.
8. Nova Scotia
   • Private insurers provide auto insurance.
   • Mandatory coverage includes third-party liability, accident benefits, uninsured automobile coverage, and DCPD.
   • Optional coverages are also available.
9. Prince Edward Island (PEI)
   • Private insurers provide auto insurance.
   • Mandatory coverage includes third-party liability, accident benefits, uninsured automobile coverage, and DCPD.
   • Optional coverages are also available.
10. Newfoundland and Labrador
    • Private insurers provide auto insurance.
    • Mandatory coverage includes third-party liability and accident benefits.
    • Optional coverages are also available.
11. Yukon, Northwest Territories, and Nunavut
    • Private insurers provide auto insurance in all three territories.
    • Mandatory coverage includes third-party liability, accident benefits, and uninsured motorist protection.
    • Optional coverages are also available.

Remember, within each province or territory, there can be specific nuances and additional options for coverage. It’s essential to consult with an insurance broker or provider in your particular province or territory to ensure you’re adequately covered.

Average Full-Coverage Car Insurance Cost in Canada

Full coverage car insurance typically includes liability coverage, collision coverage, and comprehensive coverage. The cost of full coverage car insurance can vary depending on many factors, including the type of car, the driver’s age and driving history, and the province or territory where the driver lives. Here are some approximate ranges for full coverage car insurance rates in five top provinces in Canada, along with driver profiles:

1. Ontario:

• Toronto: $2,500 – $5,500 per year
  • Driver profile: 35-year-old with a clean driving record, driving a 2021 Toyota Camry
• Ottawa: $1,800 – $3,500 per year
  • Driver profile: 40-year-old with a clean driving record, driving a 2021 Honda Civic
• Hamilton: $2,000 – $4,500 per year
  • Driver profile: 30-year-old with one at-fault accident on record, driving a 2020 Ford Escape
• London: $1,800 – $3,500 per year
  • Driver profile: 25-year-old with one speeding ticket on record, driving a 2019 Mazda3
• Windsor: $1,700 – $3,000 per year
  • Driver profile: 45-year-old with a clean driving record, driving a 2020 Hyundai Elantra

2. Quebec:

• Montreal: $1,200 – $2,500 per year
  • Driver profile: 35-year-old with a clean driving record, driving a 2021 Toyota RAV4
• Quebec City: $1,000 – $2,000 per year
  • Driver profile: 40-year-old with a clean driving record, driving a 2020 Honda CR-V
• Gatineau: $1,100 – $2,200 per year
  • Driver profile: 30-year-old with one at-fault accident on record, driving a 2019 Subaru Outback
• Laval: $1,200 – $2,500 per year
  • Driver profile: 25-year-old with one speeding ticket on record, driving a 2018 Volkswagen Golf
• Longueuil: $1,000 – $2,000 per year
  • Driver profile: 45-year-old with a clean driving record, driving a 2020 Kia Sorento

3. British Columbia:

• Vancouver: $1,800 – $4,000 per year
  • Driver profile: 35-year-old with a clean driving record, driving a 2021 Toyota Highlander
• Victoria: $1,400 – $3,000 per year
  • Driver profile: 40-year-old with a clean driving record, driving a 2020 Honda Pilot
• Surrey: $1,500 – $3,500 per year
  • Driver profile: 30-year-old with one at-fault accident on record, driving a 2019 Mazda CX-5
• Burnaby: $1,600 – $3,500 per year
  • Driver profile: 25-year-old with one speeding ticket on record, driving a 2018 Ford Mustang
• Richmond: $1,400 – $3,000 per year
  • Driver profile: 45-year-old with a clean driving record, driving a 2020 Toyota 4Runner

4. Alberta:

• Calgary: $1,800 – $4,000 per year
  • Driver profile: 35-year-old with a clean driving record, driving a 2021 Honda Odyssey
• Edmonton: $1,700 – $3,500 per year
  • Driver profile: 40-year-old with a clean driving record, driving a 2020 Toyota Corolla

• Red Deer: $1,500 – $3,000 per year
  • Driver profile: 30-year-old with one at-fault accident on record, driving a 2019 Subaru Crosstrek
• Lethbridge: $1,400 – $2,800 per year
  • Driver profile: 25-year-old with one speeding ticket on record, driving a 2018 Volkswagen Jetta
• Fort McMurray: $1,800 – $3,800 per year
  • Driver profile: 45-year-old with a clean driving record, driving a 2020 Ford F-150

5. Manitoba:

• Winnipeg: $1,200 – $2,800 per year
  • Driver profile: 35-year-old with a clean driving record, driving a 2021 Kia Sportage
• Brandon: $1,000 – $2,200 per year
  • Driver profile: 40-year-old with a clean driving record, driving a 2020 Honda Civic
• Steinbach: $900 – $1,800 per year
  • Driver profile: 30-year-old with one at-fault accident on record, driving a 2019 Hyundai Kona
• Portage la Prairie: $1,100 – $2,200 per year
  • Driver profile: 25-year-old with one speeding ticket on record, driving a 2018 Toyota Corolla
• Thompson: $1,200 – $2,500 per year
  • Driver profile: 45-year-old with a clean driving record, driving a 2020 Ford Escape

It’s important to note that these are just estimates and actual rates can vary depending on individual circumstances. Car insurance rates can also change over time based on changes to your driving record, insurance company policies, and other factors.

What does full coverage car insurance consist of?

Generally speaking, full coverage car insurance in Canada would typically include the following:

1. Mandatory Coverages (these vary by province but usually include):
   • Third-Party Liability: Protects if someone else is killed or injured, or their property is damaged. It will pay for claims against you up to the limit of your coverage.
   • Accident Benefits/Bodily Injury: Provides benefits if you or your passengers are injured or killed in an auto accident, covering aspects like medical expenses and rehabilitation.
   • Direct Compensation – Property Damage (DCPD): Available in some provinces, this means if another driver is at fault for damaging your vehicle, you claim through your own insurer.
2. Optional Coverages:
   • Collision: Covers the repair or replacement costs of your vehicle if it’s involved in an accident, regardless of fault.
   • Comprehensive: Provides coverage for non-collision related threats, such as theft, vandalism, natural disasters, and more.
   • Specified Perils: Covers only specific dangers named in the policy, like theft or fire.
   • All Perils: Combines both Collision and Comprehensive coverages, with added protections.
   • Uninsured/Underinsured Motorist Protection: Covers you in case you’re involved in an accident with an uninsured or underinsured driver, or if you’re a victim of a hit-and-run.
3. Additional Coverages/Endorsements (which might be considered in “full coverage” depending on individual needs):
   • Rental Vehicle Coverage: For when you rent a vehicle or need a replacement vehicle after an accident.
   • Depreciation Waiver or New Vehicle Protection: For newer vehicles, it protects against depreciation in the event of a total loss.
   • Family Protection Endorsement: Offers added protection if you or a family member are injured or killed by an uninsured or underinsured driver.

FAQs

Q1: What is meant by “full coverage” car insurance in Canada?

A1: “Full coverage” isn’t an official industry term in Canada. Generally, it refers to a combination of mandatory and optional coverages, offering comprehensive protection. This usually includes third-party liability, accident benefits, collision, and comprehensive coverages, among others.

Q2: Is full coverage car insurance mandatory in Canada?

A2: No, only specific coverages are mandatory, such as third-party liability and accident benefits. The mandatory coverages vary by province. Optional coverages like collision and comprehensive are recommended but not required.

Q3: How does full coverage car insurance differ across provinces?

A3: Each province has its own mandatory insurance requirements. While third-party liability is a standard requirement, the minimum limit and other mandatory coverages like DCPD or accident benefits can vary. Optional coverages are generally available across all provinces.

Q4: Will full coverage insurance pay off my car loan if my vehicle is totaled?

A4: Full coverage typically pays the actual cash value of your vehicle at the time of the accident, which might be less than what you owe on your loan. To cover the difference, you might consider getting a “Gap Insurance” endorsement.

Q5: Does full coverage insurance protect me if my car is stolen?

A5: Yes, if you have comprehensive coverage as part of your policy, it will cover theft of your vehicle.

Q6: Does full coverage include windshield and glass repair?

A6: Typically, comprehensive coverage within a full coverage policy would cover windshield and glass repairs or replacements, but always check your policy details or consult your insurer.

Q7: If I lend my car to a friend and they get into an accident, is my car still covered?

A7: Yes, if you have full coverage, your car should be covered. However, your insurance might be the primary source for any claims, potentially affecting your future premiums.

Q8: Do I need full coverage on a used or older vehicle?

A8: It depends on the vehicle’s value and your financial situation. For older cars with lower values, the cost of full coverage might not be justified. However, if you couldn’t easily cover repair or replacement costs out of pocket, full coverage could be worth it.

Q9: How can I lower the cost of my full coverage insurance?

A9: Some ways include increasing your deductibles, bundling home and auto insurance, using winter tires (where discounts apply), taking a defensive driving course, or asking about discounts for being a safe driver or for having anti-theft devices.

Q10: Can I cancel my full coverage insurance if I feel I no longer need it?

A10: Yes, you can adjust your policy coverages at any time. However, if your vehicle is financed or leased, your lender might require you to maintain full coverage. Always consult with your insurance provider and understand any potential implications before making changes.

Q11: How does a claim affect my full coverage insurance premiums?

A11: Making a claim can potentially increase your future insurance premiums. The impact depends on the nature of the claim, your insurance history, and whether or not you were at fault. Some providers offer “first accident forgiveness” which may prevent a rate increase for your first claim.

Q12: Does full coverage insurance cover damage from natural disasters?

A12: Yes, comprehensive coverage, which is a part of what’s colloquially called “full coverage,” typically covers damages from natural disasters like floods, earthquakes, hail, and wildfires.

Q13: Does full coverage insurance cover personal items stolen from my car?

A13: Generally, personal items stolen from your vehicle are not covered under auto insurance. They might be covered under your home or renters’ insurance policy.

Q14: If I rent a car, will my full coverage insurance protect me?

A14: Many full coverage insurance policies extend their coverages to rental cars. However, there might be limitations. Always check with your insurer before declining insurance from the rental company.

Q15: What’s the difference between third-party liability and collision coverage?

A15: Third-party liability covers damage or injuries you cause to another person or their property. Collision coverage pays for damages to your vehicle resulting from an accident, regardless of fault.

Q16: Why is full coverage more expensive than just getting the mandatory coverages?

A16: Full coverage provides broader protection, covering more potential risks and scenarios. Therefore, the potential payout from the insurer is higher, resulting in increased premiums.

Q17: I have an old car; should I drop collision and comprehensive coverages?

A17: It’s a personal decision. If your car’s value is low and you could afford to replace it out-of-pocket, you might consider dropping these coverages. However, if the cost of replacing or repairing the car would be a financial strain, maintaining full coverage might be worth the expense.

Q18: Does full coverage insurance protect against vandalism?

A18: Yes, if you have comprehensive coverage, it typically covers vandalism.

Q19: How do I know if full coverage is right for me?

A19: Consider factors like the value of your car, how much you rely on it, your financial situation, and how much risk you’re willing to take. Consult with an insurance broker to discuss your needs and get recommendations.

Q20: How often should I review my full coverage insurance policy?

A20: It’s good practice to review your policy annually or whenever there’s a significant change in your life, like purchasing a new car, moving, or adding a driver.