Benefits of having full coverage on your auto insurance
Everyone goes to their own insurer
In Ontario, we make claims on our own insurance policies when a loss happens, and not on other drivers’ policies. The insurance regulating bodies decided on this system in order to reduce the time it takes for claimants to have access to the money needed for repairs and medical aid, and also to reduce the amount of time in courts deciding who would pay for what. This means we have basic coverages in every car insurance policy related to:
- Direct Compensation Physical Damage (aka DCPD) – Covers damage to your vehicle or its contents when someone else is at fault or partially at fault.
- Statutory Accident Benefits – Provides you with benefits if you are injured in an accident, regardless of who is at fault.
- Third Party Liability – This covers you for claims-related lawsuits against you up to your purchased limit, if someone else is injured or killed, or there is damage to someone else’s property.
- Uninsured Automobile Coverage – This protects you and your family in case of injury or death from an uninsured or unidentified (hit and run) driver.
Who’s fault is it?
The above minimums protect you and your auto when you are not at fault, and provide medical and legal help even if you are at fault. However what happens to your car when you are the one at fault, or when it’s the result of something other than another driver? Car repair costs can quickly add up into the thousands or even tens of thousands, and when you have Full Coverage you can rest assured that your family’s vehicle will be protected when a loss is your fault or partially your fault. We have two packages to take care of you in these situations:
1) Collision and Comprehensive coverage
- Collision Coverage protects your car for damage that is your fault or partially your fault, in the event of a collision with another vehicle, or in the event of a single-vehicle incident with the road, object, or even flipping over.
- E.g., A common situation is during the winter when your car slips on an icy patch and collides with a curb or telephone pole.
- Comprehensive Coverage protects your family’s vehicle from additional risks other than what’s covered by Collision Coverage.
- E.g., This includes things like falling objects, vandalism, fire, theft, lightning, windstorm and earthquake. One common situation is a rock hitting your windshield on the highway.
2) All Perils coverage
- All Perils encompasses everything included with Collision and Comprehensive Coverage but adds on other coverages, in many cases for the same premium as Collision and Comprehensive Coverage. That is why, at Sukhu Insurance Brokers, we usually offer our customers with All Perils Coverage since there is an enormous value in having something for (almost) nothing.
- E.g., This includes coverage for theft by an employee using or servicing the vehicle, such as when you leave it at a garage and an employee steals it. It even includes coverage for theft by someone who lives at your own home, such as a rebellious teenager.
Protect your car with full coverage
If you are leasing or financing your car, you will be required to have full coverage to protect that valuable asset, as the bank or financing company wants to make sure physical damages are fully protected. Even if it’s not leased or financed, most people want to protect a new or newer car because they have invested so much money to drive the kind of car that they want. In some cases however, people with lower-value or older cars may opt to decline full coverage, in order to save on their premium but take on the risk that they would pay out of pocket if those additional situations occur.