Auto Insurance coverage can get a bit confusing, especially when you're not even sure exactly what is covered. Added to that, there is also coverage which is mandatory in Ontario. A few explanations of the main areas of coverage may help you become a better consumer and be more realistic about your vehicle and your Insurance policy.
Comprehensive (COMP)-this covers your vehicle for losses that are not collision-related such as if your car is stolen, vandalism and even weather or animal damage. This coverage will pay to fix your vehicle, less your chosen deductible. Actual scope of coverage and limits will vary from policy to policy and each Insured chooses the deductible best suited for them. Obviously, choosing a higher deductible will result in lower premiums. Continuing Comprehensive coverage can also be dependent on the age and condition of your vehicle. You may have an opportunity to drop this coverage, which will also reduce your premiums, but you should discuss any policy changes with your agent or broker to determine what is best for your situation.
Collision (COLL)-Collision coverage pays for damages (less deductible) to your insured vehicle if involved in a collision with another vehicle, an object, or if your car tips over. It covers you when you are deemed at fault. This, like COMP, is not mandatory coverage and its worth is dependent on the age, condition and current value of your vehicle. For your own benefit, make sure you speak with your Agent or Broker before making any changes to your coverage.
Liability-This is provincially mandatory insurance which provides coverage for damages incurred in an auto accident. This protects the insured for vehicle/property damage or personal injuries sustained which are deemed to be the fault of the insured. There is minimum coverage of $200,000 in Ontario but each insured can determine their liability levels, with $1-$2,000,000.00** being the standard.
Other Coverage: There are other forms of coverage in your policy, with many being optional-Accident Benefits, Uninsured Motorists, Direct Compensation, All Perils and Specified Perils.
Be an advised consumer by looking over your Insurance policy and discussing your options with your Agent or Broker.
**As per the Insurance Bureau of Canada
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