In Ontario, mandatory auto insurance is the minimum amount of coverage every vehicle owner must have. However, you may also decide on additional auto insurance coverages for extra peace of mind. All Perils coverage, also known as All Risk coverage, is one of the broadest forms of coverage – covering everything except what might be listed as an exclusion in your policy. To help you have a better understanding of the insurance coverages available, we will give a brief description of each type of auto coverage available, with a specific focus on All Perils insurance coverage.
Auto Insurance Coverage Basics
No matter what type of vehicle you drive, you have the option of choosing the level of insurance coverage that suits your individual needs. Depending on how much protection you want for your car, there are several options:
- Collision or Upset coverage: Covers costs of the repair or replacement of your vehicle if you are at-fault. It will cover you for a collision with another car or an object, such as a tree or a pothole. Our variable Canadian weather and never-ending construction season have caused many drivers to opt for collision coverage.
- Comprehensive coverage: Referred to as “coverage against perils other than collision or upset”, Comprehensive insurance covers repairs or replacement of a vehicle that suffers damage from something other than a collision. This can include a fire, theft, hitting an animal, vandalism or a wind/hail storm. Basically, factors that are often outside of your control.
- Specified perils coverage: Offers protection in the event of damage or loss to your vehicle resulting from explicitly-named events, such as hail, windstorms, or lightning damage. Some other commonly named perils covered under specified perils coverage includes fire, theft and attempted theft.
What is All Perils Coverage?
All Perils coverage is an optional type of insurance. It is also referred to as an “All Risk policy”. It’s one of the most extensive options which combines both collision and comprehensive coverages. This type of coverage also includes protection for all risks unless they are otherwise excluded in your policy. As it provides such broad coverage, it can be a little more expensive. This coverage is optional in most provinces, but if you finance or lease a vehicle, the financial institution may require you have it.
Perils That May Be Included in an All Perils policy
- Fire/lightening
- Windstorm
- Hail
- Theft
- Vandalism/mischief
- Falling objects
- Weight of ice, snow, sleet
- Freezing
- Damage from electrical current
Common Exclusions for an All Perils Policy
Even broad All Perils policies have exclusions. Typical exclusions might include:
- Wear and tear, rust, corrosion or mechanical breakdown
- Intentional or fraudulent damage
- War, terrorism or nuclear events
- Some large-scale natural disasters not covered under other parts of your policy
- Damage covered under other forms of insurance or not covered at all unless you add specific endorsements or riders
Tip: It’s essential to review the exclusions section of your specific policy to know exactly what you’re not covered for.
How Does All Perils Compare to Other Coverage Types?
- Collision Coverage: Pays for damage when your vehicle hits another object or rolls over.
- Comprehensive Coverage: Covers non-collision events like theft, fire, hail, or animal strikes.
- All Perils Coverage: Combines both collision and comprehensive protection — and then adds further protection so long as the cause isn’t excluded.
In contrast, Specified Perils coverage only protects against risks specifically listed in your policy. If a risk isn’t named, it won’t be covered.
Who Should Consider All Perils Coverage?
All Perils coverage may be a good fit for you if:
- You want broad protection and fewer gaps in coverage
- You own a newer or higher-value vehicle
- You want peace of mind for unpredictable risks
- You share your vehicle with other household drivers
- You want a simplified approach instead of juggling multiple separate coverages
How to Decide What’s Right for You
Choosing auto coverage should be based on your personal needs, risk tolerance, and budget. Ask yourself:
- Could you afford repairs or replacement out of pocket?
- How much value does your vehicle hold?
- Do you drive in areas with high theft or weather risks?
- Are you comfortable with a higher deductible to reduce premiums?
A broker or agent can help tailor coverage to your situation.
How Much Does All Perils Coverage Cost?
Cost varies based on many factors — including your driving history, vehicle type, location, coverage limits, and deductible. Because All Perils combines multiple coverage types, it is typically more expensive than opting for just Collision or Specified Perils coverage.
To learn more about factors that affect your auto premiums, please click here.
DYK: If damage is caused while your vehicle was stolen by someone in your household or someone you’ve hired to drive your vehicle (e.g., an employee), this will be covered by an All Perils policy.
Is All Perils Coverage Required in Ontario?
No — All Perils coverage is optional in most provinces, including Ontario, unless your vehicle is financed or leased. In those cases, your lender may require a certain level of coverage as a condition of the loan.
Pros & Cons
Pros
- Wide-ranging protection against most causes of damage
- Combination of collision and comprehensive inone package
- Peace of mind for drivers who want maximum coverage
Cons
- Generally, more expensive than Specified Perils or basic coverage
- Not every risk is included — you still must check exclusions
- Some coverage may overlap with other policies (like home insurance for theft from your driveway) depending on limits and terms
FAQs
Does All Perils Coverage Include Collision With an Uninsured Driver?
This is a frequent point of confusion. All Perils coverage responds to damage to your vehicle, regardless of who caused it — subject to exclusions and deductibles. Liability issues are handled separately.
Does All Perils Coverage Cover Hit-and-Run Accidents?
Hit-and-run damage is typically covered under All Perils, assuming the incident meets policy conditions and is reported properly.
Is There a Deductible for All Perils Coverage?
Yes — deductibles still apply, and in some policies collision and comprehensive portions may carry different deductibles unless combined.
Does All Perils Coverage Replace or Duplicate Other Coverages?
All Perils replaces the need to carry separate Collision and Comprehensive coverages but does not replace liability, accident benefits, or uninsured motorist coverage.
Can I Switch to or From All Perils Coverage Mid-Policy?
Coverage changes are often possible at renewal or mid-term, though premiums and conditions may adjust.
Is This Coverage Worth It for Older Vehicles?
At some point, the cost of coverage may outweigh the vehicle’s value — especially if repairs would exceed payout after deductible.
Does All Perils Coverage Protect Custom or Aftermarket Add-Ons?
Standard All Perils coverage may not fully cover aftermarket parts unless declared or insured separately.
Final Thoughts
An All perils policy provides drivers with coverage against the majority of perils. This will give you peace of mind knowing you have protection against almost all types of damage to your vehicle. But ultimately, it comes down to your risk tolerance. Some drivers are willing to pay a little extra for it. However, you may be willing to forego it to keep your premiums down. Speak with your isure broker to determine if All Perils is the right coverage for you!
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