Getting into an accident can be stressful. Once the shock of the incident wears off, you’ll need to have your car repaired or replaced. Understanding your auto policy coverage is important at a time like this. To help you through this experience, we’ve answered some of the more commonly asked collision insurance question below:
Is collision insurance required in Ontario?
No. Although it should be part of your auto policy, it is not mandatory. However, it is recommended, especially if you have a newer vehicle.
Am I covered for an accident through my liability coverage?
Third party liability insurance provides protection against claims of damage and injuries to people and property that you are responsible for. It does not cover you for damages to your own property.
What happens if you do not have collision?
Without collision coverage, you will have to pay out of pocket. If you are found to be at-fault, you will have to repair damage to your own vehicle.
Do I need collision insurance?
When deciding whether you need this type of coverage, you should consider the value of your vehicle and the size of your collision deductible. Driving a brand new EV? It will be a relatively small investment to pay a deductible of $1,000 to have it replaced. On the other hand, if you’re driving an old car whose value is roughly the same as the deductible, paying extra for this protection is perhaps not your best choice.
What’s the difference between collision and comprehensive coverage?
Collision and comprehensive coverage are both options you can add to your policy, with a distinct difference. Which coverage steps in is determined by whether or not you are driving the vehicle at the time the damage occurs. Collision coverage covers costs for repair or replacement of your vehicle if you are at-fault. If your vehicle requires repairs or replacement due to something other than a collision, it will be taken care of through comprehensive insurance.
What makes liability and collision insurance different?
Collision is not mandatory, while liability is. Third-Party Liability provides protection against claims of damage and injuries to people and property. Collectively, they provide you with better overall protection when driving.
What are factors to consider when deciding to purchase collision insurance?
The three major factors affecting the price of collision insurance are:
- Your driving history
- The value of your vehicle
- The size of your deductible
Is collision necessary for a rental car?
It depends on your personal automobile policy. Some policies include rental cars in their coverages. If you have the OPCF 27 endorsement, it will apply to rental cars. Collison coverage is a requirement if you are planning to lease or finance a car. So, it’s important to find out if you have it before you arrange for some through the rental company.
What is accident forgiveness?
Depending on your insurer, they may offer an option for accident forgiveness. If you’re in an at-fault accident and you have it on your policy, your insurer won’t increase your premiums for one accident. If you have a history of accidents, you may not qualify for this add-on endorsement to your policy. It may come standard on your policy, so be sure to ask about it when you’re speaking with your insurance provider. Otherwise, you can ask to have the OPCF 39 Accident Forgiveness endorsement added to your policy.
When should I drop collision insurance?
The rule of thumb is if the cost of collision insurance is 10% or more than your vehicle’s worth, it’s time to drop it. For instance, a $5,000 car that costs you $500 in collision coverage every year just isn’t worth it. There are a few situations where it may make more sense to keep the additional protection. If you are leasing or financing, have a long history of accidents or simply wish to have some peace of mind, it’s best to keep collision coverage on your policy.
Is it better to have a $500 deductible or $1,000?
A higher deductible means you’ll pay less for insurance annually, but you’ll have to fork over that higher amount if you file a collision insurance claim. If you can afford the higher deductible, go for it.
Is DCPD coverage the same as collision coverage?
DCPD is the portion of your policy that compensates you directly when your vehicle is damaged in an accident for which you are not at-fault. Collision coverage pays for damages when you are at-fault.
Is a hit-and-run accident covered by collision insurance?
If you are the victim of a hit-and-run, it is your policy’s collision coverage that will reimburse you for damages. That is, provided you have this optional coverage added to your policy prior to the accident.
Remember, our isure brokers can answer any collision insurance questions you may have if you have been in an accident. Give us a call today!