Collision vs Comprehensive Insurance in Ontario
Collision and comprehensive cover different types of physical damage to your vehicle. Both are optional additions rather than the same thing as Ontario's mandatory liability and accident-benefit protections.
Buying collision or comprehensive can increase the premium
FSRA says the amount of coverage you purchase affects your rate. It specifically lists collision or upset and comprehensive coverage for theft, vandalism, hail or explosion as extra protection that may increase premiums.
FSRA — What determines your auto insurance rate →What does collision coverage generally address?
Collision or upset coverage is designed for insured physical damage to your automobile caused by collision with another object or by upset, subject to the policy wording, deductible and exclusions.
It is separate from third-party liability, which addresses covered liability to other people, and separate from DCPD, which can respond in certain Ontario accidents when another insured driver is at fault.
FSRA — Optional and extra coverage →What does comprehensive coverage generally address?
Comprehensive is designed for certain insured losses other than collision. FSRA gives examples including theft, vandalism, hail and explosion.
The exact insured perils, exclusions and deductible are determined by the policy. A theft concern does not mean every theft-related expense is automatically covered.
FSRA — Coverage and rate factors →Why vehicle value and repair cost matter
FSRA says vehicle make, model, year, value and repair costs are among the factors that can affect auto insurance pricing. Those vehicle characteristics become particularly relevant when the policy includes protection for physical damage to the insured automobile.
This is why dropping physical-damage coverage on an older vehicle is not simply a question of age. The decision involves the vehicle's value, deductible, financing or lease obligations, premium difference and the owner's ability to absorb a loss.
Higher deductibles and lower premiums
FSRA explains that a deductible is the amount the policyholder is required to pay when making certain claims and that insurers may offer separate deductibles for collision and comprehensive.
As a general rule, FSRA says a lower deductible means a higher premium. That relationship does not tell you which deductible is appropriate for your finances; it only describes the pricing trade-off.