The main difference between specified perils and comprehensive car insurance is that specified perils only cover the risks specifically listed in your policy. In contrast, comprehensive coverage protects against a broader range of non-collision events, including vandalism and falling objects. Comprehensive coverage generally offers more protection but costs more than specified perils insurance.
In this article, we compare specified perils and comprehensive car insurance to help you determine which end of the spectrum your insurance needs lie.
Specified Perils vs. Comprehensive Coverage At A Glance
Specified Perils | Comprehensive Coverage |
Covers only listed risks | Covers most non-collision risks |
Lower premiums | Higher premiums |
Does not usually cover vandalism | Covers vandalism |
Does not usually cover falling objects | Covers falling objects |
Good for older vehicles | Better for newer vehicles |
Optional coverage | Optional coverage |
Auto Insurance: Understanding The Basics
When it comes to car insurance, there are a lot of different waivers, policies, and add-ons available. To add to this, there is a plethora of auto insurance terms that can be tough to remember. At the end of the day, it can be hard to keep track of which covers what. 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:
The Main Coverage
Specified Perils coverage, or Named Perils, provides protection for damage or loss to your vehicle resulting from explicitly named events. This includes hail, windstorms or lightning damage. Some other commonly named perils covered include:
- Fire
- Theft and attempted theft
- Rising water
- Earthquake
- Explosion
- Rioting
- Damage during transport
Not all insurance carriers offer the same coverage. Therefore, it is important to always shop around for the best rate for your specific coverage needs.
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Comprehensive Coverage
Referred to as “coverage against perils other than collision or upset”, Comprehensive car 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 damage caused by a wind or hail storm. Basically, factors that are often outside of your control.
You will notice that there are many similar instances covered, for example:
- Fire
- Theft
- Vandalism
- Extreme weather
- Falling objects
- Some instances of damage from collisions with wildlife
The Insurance Bureau of Canada (IBC) states that comprehensive coverage includes all perils, except for:
- Collision
- Upset with the insurance vehicle
- Damage caused by theft by a person who resides with you or who repairs your car
What Is The Difference Between Specified Perils and Comprehensive Coverage?
These two types of insurance coverage are very similar in the coverage they provide. The main difference between the two is that specified perils will not cover vandalism or damage from falling objects, whereas comprehensive insurance will. Another noteworthy difference between specified perils and comprehensive car insurance has to do with ownership of your vehicle. If you are financing or leasing your vehicle, the finance company may require you to have comprehensive coverage, as you don’t own your vehicle outright.
You can add specified perils coverage to the mandatory auto insurance required in Ontario. Many car owners opt to include this coverage because it offers extra protection for many perils not covered under a standard auto insurance policy. The ability to pick and choose which perils you have coverage for means that you aren’t paying for coverage you don’t want or need to have.
Comprehensive coverage is a wiser choice if you have a newer vehicle. Repairs or replacement of your vehicle will most likely cost more than your annual premium.
Comparing Coverages: What Is The Best Choice For You?
If your ride has more than a few miles on it, you may not be looking to get a ton of coverage. Here are some examples when Specified Perils makes the most sense:
- Your car was stolen, although it was old and nothing fancy. By choosing to purchase Specified Perils coverage, your rental vehicle will be covered, so you can still drive to work or take your kids to school. And if your car is recovered with extensive damage, specified perils will cover the repairs.
- Your spouse is caught in a severe hailstorm and has suffered much damage. Specified Perils coverage will cover the cost of getting your car repaired and repainted.
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Specified Perils Vs. Comprehensive Coverage: Frequently Asked Questions
What is specified perils coverage?
Specified perils coverage protects your vehicle against risks that are specifically listed in your insurance policy. This can include fire, theft, hail or lightning.
What is comprehensive coverage?
Comprehensive coverage will provide you with broader protection, covering most non-collision losses unless specifically excluded in your policy.
Do specified perils cover vandalism?
No. Comprehensive insurance typically covers vandalism, while specified perils coverage does not.
Do specified perils cover theft?
Yes. Most specified-perils policies include theft and attempted theft. With that being said, you should always review your policy since coverage will vary depending on your insurer.
Is specified perils coverage cheaper than comprehensive coverage?
Yes. In most cases, specified perils coverage will be cheaper than comprehensive coverage. This is because it covers fewer risks, so premiums are generally lower.
Making The Right Choice When It Comes To Your Insurance
At the end of the day, choosing the type of insurance that works for you comes down to your vehicle, your budget and the level of protection you’re after. If you own an older vehicle, specified perils may be the most cost-effective option. On the other hand, if you drive a newer, financed vehicle, comprehensive coverage will offer you broader protection.
No matter the case, it is important to review your policy and speak to your insurance broker to determine which type of coverage will best fit your needs. Contact us or request a quote today!
In Ontario, mandatory auto insurance is the minimum amount of Read more
Comprehensive auto insurance will help cover the cost of damages Read more
