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 coverages available, with 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 pothole. Our variable Canadian weather and never-ending construction season have caused many drivers to opt-in 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.
Some perils that may be included in an All Perils policy are:
- Falling objects
- Weight of ice, snow, sleet
- Damage from electrical current
Some common exclusions for an All Perils policy are as follows:
- War and terrorism
- Some large-scale natural disasters – tsunamis, earthquakes and floods are often excluded.
- Nuclear disasters
- Intentional or fraudulent losses
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.
How much does All Perils coverage cost?
As All Perils is the most extensive type of policy, it will cost more than the other types of coverage. The cost depends on your insurer, driving history, limits and much more. Contact your isure broker to get an accurate price estimate!
Is All Perils coverage right for me?
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!